Microsoft finances up across the board in Q2 2018

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Microsoft has announced a very successful end to its 2018 fiscal year. Azure was singled out in Redmond's financial figures as one of Microsoft's top performers, with CEO Satya Nadella saying "We had an incredible year, surpassing $100 billion in revenue as a result of our teams’ relentless focus on customer success and the trust customers are placing in Microsoft”.

The Register has a useful summary

  • Revenues of $30.1bn were up 17 per cent from $25.6bn in Q4 2017.
  • Net income was $8.9bn, up 10 per cent from $8.0bn in the year-ago quarter.
  • Non-GAAP earnings per share was $1.13 up from $1.06 year-over-year and topping analyst estimates of $1.08.
  • Productivity and Business Processes were $9.7bn, up 10 per cent. Office commercial revenues were up 8 per cent, while Office consumer revenues were up 6 per cent. LinkedIn revenues were up 34 per cent.
  • Intelligent Cloud revenues were $9.6bn, up 20 per cent. Server business revenues were up 24 per cent. Azure revenues were up 89 per cent, while enterprise services was up 7 per cent.
  • The More Personal Computing group logged $10.8bn in revenues up 16 per cent from the year-ago quarter. Windows OEM revenues were up 7 per cent, while commercial products and cloud services revenues were up 23 per cent. Microsoft's gaming revenues were up 38 per cent, and Surface revenue was up 21 per cent, search revenues were up 16 per cent.

Satya added: "Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation."

While I have absolutely no doubt that Satya Nadella has been good in terms of making money for Microsoft, it still rankles that the company has truly obscene profits and cash reserves, yet its budget for Windows 10 Mobile in the last year seems to have been almost zero. The strategy seems to be 'give up on phones and make our apps available in the iOS and Android stores', but without a first party mobile OS branch, the vast majority of the aforementioned iOS and Android users will carry on using the Apple and Google services and applications. Microsoft has, quite simply, been sidelined, with no way back, seemingly.

Which I reckon is a crying shame. Microsoft may continue to rake in the profits for years, but they're not winning consumer hearts and minds.

Source / Credit: Microsoft