Microsoft sales fall short of highest estimates; shares slip bnnbloomberg.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bnnbloomberg.ca Daily Mail and Mail on Sunday newspapers.
Business Highlights
Revenue in Productivity and Business Processes was $13.6 billion and increased 15% (up 12% in constant currency), with the following business highlights:
Office Commercial products and cloud services revenue increased 14% (up 10% in constant currency) driven by Office 365 Commercial revenue growth of 22% (up 19% in constant currency)
Office Consumer products and cloud services revenue increased 5% (up 2% in constant currency) and Microsoft 365 Consumer subscribers increased to 50.2 million
LinkedIn revenue increased 25% (up 23% in constant currency)
Dynamics products and cloud services revenue increased 26% (up 22% in constant currency) driven by Dynamics 365 revenue growth of 45% (up 40% in constant currency)
Revenue in Intelligent Cloud was $15.1 billion and increased 23% (up 20% in constant currency), with the following business highlights:
Microsoft sales grow on cloud strength, shares dip on heightened valuation
By Stephen Nellis and Akanksha Rana
Reuters
(Reuters) - Microsoft Corp on Tuesday met analysts quarterly sales expectations and beat profit estimates, but its shares fell slightly as investors hoped for an even stronger performance after a year-long rally to a massive market valuation.
The Redmond, Washington company has become one of the world s most valuable companies, worth close to $2 trillion after its stock jumped 50% over the past year, by entering the booming market for cloud computing.
Microsoft has remained a household name during the pandemic through collaboration software as Teams. Sales have even boomed for its Windows operating system for PCs, which had waned for decades as smartphone have proliferated.
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The company said its Azure public cloud, which competes with market leader Amazon Web Services, grew 50%, faster than the 46% growth analysts had expected, according to a CNBC review of 14 equity research notes. In the prior quarter Azure revenue grew 50%. Microsoft does not disclose Azure revenue in dollars.
With respect to guidance, Microsoft is expecting $43.6 billion to $44.5 billion in revenue in the fiscal fourth quarter, said Amy Hood, Microsoft s finance chief. At the middle of the range that would represent 16% growth, more than the $42.98 billion consensus estimate among analysts polled by Refinitiv.
Microsoft s Intelligent Cloud segment delivered $15.12 billion in revenue in the fiscal third quarter. That was up 23% year over year and above the FactSet consensus estimate of $14.92 billion. Intelligent Cloud contains Azure, Windows Server, SQL Server, Visual Studio, GitHub and Enterprise Services.
Microsoft sales grow on cloud strength, shares dip on heightened valuation netscape.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from netscape.com Daily Mail and Mail on Sunday newspapers.