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Microsoft continues to rake it in as 4th qtr earnings numbers are released

Microsoft announced its 4th quarter earnings for fiscal year 2018 just a few minutes ago, and as expected, the company continues to ride the growth of Azure, the success of Office 365 and now Microsoft 365, and some bounce back on PC sales numbers to mark another quarter of strong earnings results.

Currently Microsoft’s stock price in the US sits at $104.16, with a market cap, or the bottom line number of the value of the company, at $798.82 billion dollars.

The numbers are up across the board, with revenue at $30.1B for the quarter, up 17% over Q4 last year. Operating income came in at $10.4B, up 35%, and net income was $8.9B (8.8B non-GAAP).

The company noted a $104 million benefit coming from the Trump tax cuts, but also spent $306 million on restructuring costs, as the company re-org placed less of an emphasis on Windows.

Some more numbers of note, as per the earnings statement:

Revenue in Productivity and Business Processes was $9.7 billion and increased 13% (up 10% in constant currency), with the following business highlights:

  • Office commercial products and cloud services revenue increased 10% (up 8% in constant currency) driven by Office 365 commercial revenue growth of 38% (up 35% in constant currency)
  • Office consumer products and cloud services revenue increased 8% (up 6% in constant currency) and Office 365 consumer subscribers increased to 31.4 million
  • LinkedIn revenue increased 37% (up 34% in constant currency) with continued acceleration in engagement highlighted by LinkedIn sessions growth of 41%
  • Dynamics products and cloud services revenue increased 11% (up 8% in constant currency) driven by Dynamics 365 revenue growth of 61% (up 56% in constant currency)

Revenue in Intelligent Cloud was $9.6 billion and increased 23% (up 20% in constant currency), with the following business highlights:

  • Server products and cloud services revenue increased 26% (up 24% in constant currency) driven by Azure revenue growth of 89% (up 85% in constant currency)
  • Enterprise Services revenue increased 8% (up 7% in constant currency)

Revenue in More Personal Computing was $10.8 billion and increased 17% (up 16% in constant currency), with the following business highlights:

  • Windows OEM revenue increased 7% (up 7% in constant currency) driven by OEM Pro revenue growth of 14%

  • Windows commercial products and cloud services revenue increased 23% (up 19% in constant currency) driven by an increased volume of multi-year agreements and the mix of products that carry higher in-quarter revenue recognition

  • Gaming revenue increased 39% (up 38% in constant currency) with Xbox software and services revenue growth of 36% (up 35% in constant currency) mainly from third party title strength

  • Surface revenue increased 25% (up 21% in constant currency) driven by strong performance of the latest editions of Surface against a low prior year comparable

  • Search advertising revenue excluding traffic acquisition costs increased 17% (up 16% in constant currency) driven by higher revenue per search and search volume

So as expected, another good quarter for Microsoft. We’ll have more on the earnings as the numbers are filtered and dissected.

 

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