Microsoft: Cloud business revenue up 32%

Microsoft’s earnings for the third quarter of fiscal 2022 were again strong, thanks in large part to continued momentum in its cloud services. Microsoft Cloud branch revenue for the quarter was $23.4 billion, up 32% from a year earlier. Azure and “other cloud services” grew 46% in the quarter. Microsoft still does not give Azure revenues independently of the rest of its activities in the field.

Overall revenue for the quarter was $49.4 billion, an increase of 18%. Earnings per share were $2.22, up 9%. Expert forecasts called for earnings of $2.19 per share and revenue of $49.05 billion.

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Picture: Microsoft.

Solid revenues for all products

Revenues were strong across Microsoft’s three product categories: Productivity and Business Processes (Office, LinkedIn and Dynamics); Intelligent Cloud (server products and cloud services) and More Personal Computing (Windows, Xbox, Search and Surface). Microsoft 365 consumer subscribers increased 16% to 58.4 million. Office 365 Commercial subscriber growth increased 16% year over year.

Microsoft executives attributed the strong results to stronger-than-expected sales, commercial bookings from new, renewal, and large customers that far exceeded expectations, and growth in large, long-term Azure contracts. term, despite the strong results of the previous year. The $19.7 billion acquisition of Nuance, completed in March, has had little impact so far. Going forward, Nuance financial data will be part of the Intelligent Cloud Servers and Services segment.

Windows had a strong quarter, largely driven by business growth, with Windows OEM business growing 11% year-over-year. Surface also performed well, despite a very strong quarter last year, with revenue up 18%.

Cybersecurity activity still growing

Asked by CNBC, Microsoft pointed out that its cybersecurity business is worth $15 billion a year, adding that it’s growing faster than any of the company’s other businesses. In January 2021, Microsoft revealed that this activity represented 10 billion dollars for the company.

Microsoft is however the subject of criticism on this subject, for having praised the rapid growth of this activity, while its customers must always spend to reinforce the security of Microsoft software and services that they have already paid for.

For those wondering about the impact of the war in Ukraine on the Redmond giant’s revenues, Amy Hood, chief financial officer, reassured during the conference call on the results of the quarter: Russia represents less than 1% revenue from Microsoft. Earlier this year, the company announced it was halting all new business with Russia, following its invasion of Ukraine.

Source: ZDNet.com

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