Microsoft announced revenue of $36.9 billion, registering 14 percent increase powered by its success in Cloud business.
Microsoft reported operating income of $13.9 billion (+35 percent) and net income of $11.6 billion (+38 percent) for the quarter ended December 31, 2019.
“We are innovating across every layer of our differentiated technology stack and leading in key secular areas that are critical to our customers’ success,” said Satya Nadella, chief executive officer of Microsoft.
Microsoft said Azure Cloud business grew 62 percent in the quarter, down from a 76 percent revenue growth rate the year before but up from 59 percent in the fiscal first quarter.
Microsoft Chief Financial Officer Amy Hood said increased consumption of Azure services, which include offerings such as computing power to run applications and data storage services, drove the increased revenue growth.
In 2019, Microsoft had 22 percent share of the cloud computing infrastructure market as against 45 percent at Amazon Web Services (AWS) and 5 percent from Google, according to data from Forrester Research.
Microsoft said revenue increased 17 percent in Productivity and Business Processes business to $11.8 billion.
Office Commercial products and cloud services revenue increased 16 percent driven by Office 365 Commercial revenue growth of 27 percent.
Office Consumer products and cloud services revenue increased 19 percent with growth in Office 365 Consumer subscribers to 37.2 million.
LinkedIn revenue increased 24 percent.
Dynamics products and cloud services revenue increased 12 percent driven by Dynamics 365 revenue growth of 42 percent.
Revenue in Intelligent Cloud increased 27 percent to $11.9 billion.
Server products and cloud services revenue increased 30 percent driven by Azure revenue growth of 62 percent.
Enterprise Services revenue increased 6 percent.
Revenue in More Personal Computing increased 2 percent to $13.2 billion.
Windows OEM revenue increased 18 percent. Windows Commercial products and cloud services revenue increased 25 percent. Surface revenue increased 6 percent.