Microsoft: Cloud revenue at $23.4 billion in Q3, up 32 percent | ZDNet | TechBuzz

- Advertisement -


Microsoft’s fiscal 2022 third quarter earnings were strong again, thanks largely to its continued cloud services momentum. Microsoft Cloud revenues for the quarter were $23.4 billion, up 32 percent year-over-year. Azure and “other cloud services” were up 46 percent for the quarter. Microsoft still doesn’t break out Azure revenues separately in dollars.

- Advertisement -

Revenues across the board for the quarter were $49.4 billion, up 18 percent. Profit was up 8 percent to $16.7 billion. Earnings per share were $2.22, up 9 percent. Wall Street was expecting Microsoft to report earnings of $2.19 per share and revenues of $49.05 billion.

msq3fy22cloudbreakout.jpg

Credit: Microsoft

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 grew 16 percent to 58.4 million. Office 365 Commercial subscriber seat growth was up 16 percent year-over-year. Last Q3, O365 commercial paid seats hit 300 million.

Microsoft officials attributed the solid earnings to stronger-than-expected sales execution; commercial bookings from new, renewal and large customers being significantly ahead of expectations; and growth in big,  longer-term Azure contracts in spite of a strong prior-year comparable. There was little impact so far from its $19.7 billion Nuance acquisition, which closed in March. Going forward, Nuance’s financials will be part of the Intelligent Cloud server and services segment.

Windows had a strong quarter, largely thanks to commercial growth, with the Windows OEM business up 11 percent year-over-year. Surface also had a good showing, despite a very strong comparable quarter a year ago, with revenues up 18 percent.

Officials told CNBC today that Microsoft’s cybersecurity business is at $15 billion annually and growing faster than any other business at the company. In January 2021, Microsoft execs said this was a $10 billion business for the company. 

Microsoft has come under criticism for touting how rapidly this business is growing, given that customers are needing to spend to shore up security in Microsoft software and services for which they’ve already paid.



Source link

- Advertisement -
Adminhttp://techbuzz.asia
I am admin of techbuzz.asia blog & I provide tech-related news. As a part of my hobby, I make content related to technology and gadgets reviews too. I love to be a content creator apart from it, I am a full-time employee in an MNC company and manage blogs systematically. You can mail me at [email protected]

More from author

Related posts

Advertisment

Latest posts

Want to stay up to date with the latest news?

We would love to hear from you! Please fill in your details and we will stay in touch. It's that simple!