Microsoft’s first-quarter performance exceeds expectations: the epidemic is good for cloud computing and gaming business
The morning news on October 27, Beijing time, according to reports,As the trend of mixed office and home entertainment during the epidemic has boosted demand for cloud computing services and game consoles, Microsoft’s quarterly results released on Tuesday exceeded Wall Street expectations.The cloud computing services provided by Microsoft, Amazon, and Google have all surged after the outbreak of the new crown last year, driving an increase in online activities.
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Microsoft said the company’s largest and fastest-growing “smart cloud” unit revenue soared 31% to $17 billion. The average analyst forecast is 16.58 billion U.S. dollars.
Calculated at a constant exchange rate, Microsoft’s flagship cloud computing business Azure revenue increased by 48%, exceeding analysts’ average forecast of 47.5%.
Azure’s growth rate is the most direct comparison between Amazon AWS and Google Cloud, because Microsoft has not announced the revenue data of the entire cloud computing business.
Microsoft seems to have withstood the challenge of increasing Google Cloud. Google Cloud announced on Tuesday that its latest quarter’s revenue increased by 45% to $4.99 billion, but it failed to meet the analyst’s average estimate of $5.2 billion.
Other Microsoft businesses such as Windows software, Teams messaging service and LinkedIn professional social network also exceeded analyst expectations.
The supply chain issues affecting the global technology industry have limited impact on Microsoft.
Microsoft executive vice president and CFO Amy Hood (Amy Hood) said that although the company’s data center construction costs have indeed increased, it can still be offset to a certain extent, so after considering the recent data center cost changes , The gross profit margin of its business cloud division still achieved growth.
Microsoft said itsXboxGame console andAccessoriesDepartmental revenue increased by 166%, mainly due to the high demand for new models after the epidemic forced millions of people to live at home.
But Microsoft and its competitors are unable to meet market demand due to global chip shortages.
Hood said that the company expects Xbox game consoles to still be in short supply.
Microsoft’s Windows and PC sales revenue for the quarter increased by 10% year-on-year. According to the data of market research company IDC, affected by the tightening of the supply chain, the overall growth rate of the global PC market is only 3.9%.
Hu De said that the company’s ability to surpass the overall growth rate of the PC market is mainly due to the positive Windows licensing business in the corporate market. This type of licensing unit has higher revenue and Microsoft’s market share is also larger.
Overall, Microsoft’s revenue for the first fiscal quarter ended September 30 increased by 22% to $45.32 billion, exceeding market expectations of $43.97 billion.
Net profit for the quarter increased to US$20.51 billion, or US$2.71 per share. The company said that this result included a net tax benefit of $3.3 billion.
Microsoft’s adjusted earnings per share for the quarter were US$2.27, exceeding analysts’ average estimate of US$2.07 per share.
Microsoft’s stock price has risen nearly 40% this year, and it also rose slightly after the market on Tuesday.