Today was the day chosen by Microsoft to present its financial results corresponding to its third fiscal quarter or second quarter of 2016 ended June 30; roughly it has exceeded analysts expectations by showing good numbers and a consolidation of its business in the cloud, which has caused so far in after- hours trading the shares of the company presented an increase of 4%.
In short, Microsoft is reporting revenues of $ 22,642 million, 7% higher than the same quarter last year, exceeding expectations of 22.140 billion expected by the market. In general an increase occurs in the wide range of company business, where the cloud has become to look like the most important business, while in the other corner is the business of smartphones that no longer seems to matter to Microsoft.
Cloud shines as ever for Microsoft
“The cloud Microsoft is experiencing significant customer growth and we are in good position to reach new opportunities over the next year.”
These are the words of Satya Nadella, CEO of Microsoft, who continues to promote sustained growth cloud business and enterprise tools, servers and data centers , business took seriously a year ago and now practically is becoming the most important for its performance and scope.
From previous months we have seen as the ‘Intelligent Cloud’ has been growing and this quarter is being consolidated revenues of 6,700 million dollars, which highlights the participation of Microsoft Azure with an increase of 102% over the previous year, while servers and cloud services business increased by 5%, which has been very well received by investors.
With this, Microsoft is pushing ahead with its plan aimed at their business in the cloud will be able to have revenues of 20,000 million for 2018, a projection a year ago sounded amazing, but now seems possible.
Productivity section also shows good health
In the section of Productivity and Business Process we see widespread growth of 5% to 7.000 billion dollars, paragraph concentrating commercial Office products that have increased this quarter by 5%, highlighting the case of Office 365 that has a growth of 54% and a significant user base that already exceeds 23 million subscribers.
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Surface and Xbox are maintained, the problem is the business of smartphones
It is curious that during the call to investors emphasis on growth in the cloud and increasing subscribers Office 365 and Xbox, while the mobile division of the company virtually unnoticed, is that here Microsoft has made a move smart does not affect their overall numbers; because even though the sale of mobile has fallen by 71% over the previous year, this fall represents only 1% of company revenues, because the absence of investment losses are almost nonexistent, it simply means they have left to sell less than a year ago, but are no longer losing money as a few months ago.
Mobiles Microsoft are in the section called ‘More Personal Computing’, showing a drop of 4% over the previous year driven by the decline in sales of smartphones, but despite this, is reporting revenue of nearly 9,000 million dollars , because here we have the sale of Windows licenses with an increase of 27% for home users and 2% for professionals.
Surface is pressing ahead with an increase of 9% thanks to the participation of Surface and Surface Pro 4 Book, while Xbox reports a significant increase in active users of 33%, closing the quarter at 49 million Xbox Live users.
With this, we see that the decisions of restructuring that has taken Natella are beginning to bear fruit, decisions that led to the dismissal of several people as well as more focused on the cloud and approach aside business unprofitable, as the case smartphones, a blow that this quarter was not as great as before, but significantly affect the objective that Windows 10 is 1,000 million devices, which the company already has advanced not get due to the change strategy of mobile division, which remains a mystery.