Microsoft reports record profit and revenue

In its quarterly results, Microsoft posted a record revenue and profit beating Wall Street expectations, fuelled by its cloud computing. 

For the quarter ending December 31 2021, its revenue was US$51.7 billion increasing by 20 percent and its profit came in at US$18.8 billion increasing by 21 percent.

Microsoft’s cloud business stayed strong as lockdowns and the Omicron variant kept people working remotely. Its cloud revenue came in at US$22.1 billion, up 32 percent, its cloud revenue accounts for its Office 365 subscriptions and Azure, its cloud computing platform.

Microsoft’s operating income was US$22.2 billion, an increase of 24 percent with diluted earnings per share at US$2.48 and increased by 22 percent.

Satya Nadella, chairman and CEO of Microsoft said digital technology is the most malleable resource at the world’s disposal to overcome constraints and reimagine everyday work and life.

“As tech as a percentage of global GDP continues to increase, we are innovating and investing across diverse and growing markets, with a common underlying technology stack and an operating model that reinforces a common strategy, culture, and sense of purpose,” he said.

Revenue in intelligent cloud was US$18.3 billion and increased 26 percent, server products and cloud services revenue increased 29 percent driven by Azure and other cloud services revenue growth of 46 percent.

Amy Hood, executive VP and CFO at Microsoft said, “Solid commercial execution, represented by strong bookings growth driven by long-term Azure commitments, increased Microsoft Cloud revenue to US$22.1 billion, up 32 percent year over year.”

Last week, Microsoft announced its plans to buy gaming developer Activision Blizzard for $68.7 billion, which if approved by the FTC could be the biggest deal in gaming history.