Driving Cloud Revenue Growth
[Asia Economy Reporter Yujin Cho] Microsoft (MS), the world's largest software company, continued its strong performance in the fourth quarter, driven by robust growth in its cloud business.
According to MS IR data on the 25th (local time), MS reported fourth-quarter revenue of $51.7 billion (approximately 62 trillion KRW), a 20% increase compared to the same period last year (MS's own fiscal second quarter), and net profit of $18.8 billion, up 21%.
This exceeded Wall Street consensus estimates compiled by financial information firm FactSet, which projected revenue of $50 billion and net profit of $17.4 billion.
On a per-share basis, earnings were $2.48, a 22% increase compared to the same period last year, and also higher than the Wall Street estimate of $2.31.
The cloud business, MS's main revenue source, drove the strong performance due to high demand, and the gaming entertainment segment, boosted by the acquisition of Activision Blizzard, also showed an upward trend.
Revenue from 'Azure' and other cloud services increased by 46% compared to the same period last year, while video game Xbox content and services revenue grew by 10%.
However, the growth rate of revenue from Azure and other cloud services slightly decreased compared to the previous quarter's 50% growth.
Satya Nadella, MS CEO, stated, "Digital technology is the most flexible resource available worldwide to overcome the constraints of the pandemic era and reinvent daily work and life."
He added, "As the share of technology in global GDP continues to increase, we will innovate and invest in the market through an operating model that strengthens fundamental technology, strategy, and purpose."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
