Microsoft said on Tuesday that its profits in the most recent quarter have continued to soar due to the trend of handling business in the Internet cloud driven by the pandemic.
According to earnings data, the US technology giant’s profit increased to $13.9 billion (approximately Rs 10,234.90 billion), an increase of 30% over the same period last year.
Revenue for the quarter increased by 12% to 37.2 billion US dollars (approximately 274.12 billion rupees).
Microsoft Chief Financial Officer Amy Hood (Amy Hood) said: “The demand for our cloud products is a good start for this fiscal year.”
According to Hood, Microsoft received US$15.2 billion (approximately Rs 1,120.43 billion) in revenue from enterprise cloud computing products, a 31% increase over the same period last year.
During the pandemic, the demand for software, services, and data storage hosted online in the data center surged during the pandemic because the pandemic made shopping, learning, work and more content online.
Microsoft said that companies are under pressure to attract or lose customers online.
Microsoft CEO Satya Nadella (Satya Nadella) said: “Every company’s economic performance in the next ten years will depend on the speed of its digital transformation.”
Revenue also comes from the company’s Office software suite; LinkedIn’s career-centric social network, and the Xbox video game division.
Patrick Moorhead, an analyst at Moor Insights and Strategy, pointed out that Microsoft’s Surface notebook product line also experienced a “blowout” quarter, with revenue increasing 37%.
Moorhead said that Microsoft “delivered a lot of time by exceeding expectations.”
The analyst said: “Companies are transitioning from the COVID-19 classification to starting to update their digital transformation plans that focus on mixed work,” he said, referring to employees staying in touch with the office but not necessarily completing their work there.
“Microsoft is taking advantage of this phenomenon.”
According to Wedbush analyst Dan Ives, the shift to cloud computing and working from home appears to “will continue to exist,” and Microsoft will benefit from its Azure computing platform and Office 365 online software.
Although quarterly earnings exceeded expectations, Microsoft’s stock price fell by more than one percentage point, and the company is expected to bring in less earnings than analysts expected this quarter.
Microsoft forecasts revenue for the quarter between US$39.5 billion (approximately Rs 29,156.6 billion) to US$40.4 billion (approximately Rs 297.75 billion). The Redmond, Washington-based company also revealed that in the most recent quarter, search advertising revenue has fallen, which may be detrimental to Google.
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