WASHINGTON: Microsoft said Tuesday, April 27 that profits rose sharply in the last quarter amid strong momentum in cloud services for businesses amid a protracted pandemic.
Profits in the three months to March 31 jumped 44% from the same period a year ago to US $ 15.5 billion, while revenue rose 19% to US $ 41.7 billion of US dollars.
The results showed continued momentum for Microsoft, which is focused on services for businesses in the internet cloud, which became more critical during last year’s global health crisis.
“More than a year after the start of the pandemic, the digital adoption curves are not slowing down. They are accelerating, and this is only the beginning, ”said Managing Director Satya Nadella.
“We are building the cloud for the next decade, expanding our addressable market, and innovating at every level of the technology stack to help our customers be resilient and transform.
Microsoft said its cloud business revenue grew about 33% in its fiscal third quarter as part of the growing trend.
It reported strong gains in its Office suite of products and a more modest increase in software and similar services for consumers.
Microsoft posted gains on a range of products and services, including its Xbox game content and services (revenue up 34%), search engine advertising (17%), social media LinkedIn professional (25%) and its line of Surface computing products (12 percent).
The boom in the personal computer market has helped push Windows operating system revenue up 10% year-over-year, with a similar increase in commercial Windows products and cloud services.
The results come with Big Tech companies facing increasing scrutiny to dominate key economic sectors, while seeing their influence and profits increase during the pandemic.
Microsoft shares, whose market value has approached US $ 2 trillion in recent days, have fallen some 3% in after-hours trading after the results.
Dan Ives of Wedbush Securities said the results showed “strong numbers that will be another feather in the cap for Microsoft” and highlighted “the sale of shares after fashionable hours, as the streets hoped for a longer beat. important”. .
Ives added that “this cloud shift and the WFH (work from home) dynamic here seem to stay and the company is likely to be a major beneficiary of this trend.”