Microsoft Q1 FY 2020 earnings show a need for new hardware while cloud continues to grow


SurfaceFrance 2019 Oct 09

For all intents and purposes, Microsoft's progress towards increasing revenue in the cloud continues to progress at a methodical pace with the company publishing revenues of $ 33.1 billion and net revenues of $ 10.7 billion in the last three months . Much of that revenue increase, which amounts to 14 in revenue and 21 percent in net earnings, year after year was partly the growth of Microsoft's cloud portfolio, which saw profits in all categories of its business Productivity and Business Processes and their income in Intelligent Cloud that varies from 7% to 59% for certain companies.

However, the most exciting news for some readers may be fixed revenue on Xbox content and revenue for services for the quarter, which experienced a modest growth of 1% year-over-year, or perhaps even the decline of the revenues of the Microsoft Surface division, which fell 4% year-on-year. To be fair, the company was reaching the end of three of its flagship product life cycles and 2020 is the year a new Xbox will be launched.

Here are more details and conclusions of the earnings of Microsoft Q1 FY2020,

Productivity and Business Processes

Revenue in productivity and business processes was $ 11.1 billion and increased 13% (up to 15% in constant currency), with the following business highlights:

  • Revenue from commercial Office products and cloud services increased 13% (up to 15% in constant currency) driven by the growth of Office 365 business revenue 25% (up to 28% in constant currency)
  • Revenue from Office Consumer products and cloud services increased 5% (up to 6% in constant currency) with continued growth in Office 365 Consumer subscribers to 35, 6 million
  • LinkedIn revenue increased 25% (up to 26% in constant currency)
  • Dynamic product and cloud services revenue increased 14% (up to 16% in constant currency) driven By Dynamics 365 re growth of the place of 41% (up to 44% in constant currency)

Intelligent Cloud

Revenue in Intelligent Cloud was $ 10.8 billion and increased 27% (up to 29% in constant currency) , with the following highlights of the business:

  • Revenue from server products and cloud services increased by 30% (33% more in constant currency) driven by 59% Azure revenue growth (63% more in constant currency)
  • Revenue from business services increased 7% (8% more in constant currency)

Personal computing

Revenue in more personal computing was $ 11.1 billion and increased 4% (up to 5% in constant currency), with the following business highlights:

  • Windows OEM revenue increased 9% (up to 9% in constant) currency)
  • Revenue from commercial products and Windo cloud services ws increased 26% (29% more in constant currency)
  • Search advertising revenue, excluding traffic acquisition costs, increased 11% (13% more in constant currency)
  • Xbox and service revenues were relatively uncha nged (1% more in constant currency)
  • Surface revenues decreased 4% (2% less in constant currency)

Microsoft's approach to the cloud continues paying dividends for the company and its investors year after year. The company expected the fall in hardware revenues, as indicated in its earnings report: "Surface revenues decreased 4% (a decrease of 2% CC) due to the time of product life cycle transitions" . With four new flagship offers on Surface Laptop 3: 13 inches and 15 inches, Surface Pro 7 and Surface Pro X, as well as a large number of keyboard and mouse accessories, all available this holiday season, the drop in revenue should be momentary As for Xbox, despite the fact that Microsoft's momentum for Xbox Game Pass was not positively reflected in today's earnings, the company could see 2020 gains from Project xCloud services and the launch of a new Xbox, as well as A new IP for games.

The news at the end of the day comes when Microsoft has still found room to grow in the commercial productivity sector with the company exceeding 200 million subscribers to Office 365. The gain in new subscribers helped Microsoft record an increase in income close to 30% year-on-year. Windows was also another pleasant surprise for investors, as the slow death of Windows 7 has forced many companies to upgrade to Windows 10, which caused a 9% increase in Windows OEM revenue for the company. Windows commercial products experienced a good year-on-year increase.

Microsoft investors seem to be satisfied with the results, as many have exceeded expectations as operations outside working hours decreased less than 1% in an action that generally increased 34% during the year. While most investor metrics seem positive, there are imminent figures that point to a difficult growth rate for Azure with a "only" 59% drop this quarter and has been declining quarterly. How Microsoft will answer that, it will be interesting to see in the coming months and years, since its number one rival in Amazon Web Services shows no signs of slowing down.

Additional readings: AWS, Azure, Microsoft, Office 365, Qi FY 2020, Surface, Windows 10

For More Updates Check out Blog, Windows Softwares Drivers, Antivirus, Ms Office, Graphic Design Don’t Forget to Look Our Facebook Page Get Into Pc like us & follow on Twitter- @getinpc


Please Note: This content is provided and hosted by a 3rd party server. Sometimes these servers may include advertisements. igetintopc.com does not host or upload this material and is not responsible for the content.


Monitors Sale ad

Open

Close