On the back of cloud computing services and artificial intelligence, Microsoft’s revenue and profit have climbed in the last quarter.
The US tech giant reported its net income increased 10 percent to $8.8 billion on revenue that was up 17 percent to $30.1 billion when compared with the same period last year, media reports said.
Microsoft saw revenue gains across its full range of businesses including business services, gaming, internet search ads, its consumer software including Windows and Office and LinkedIn, the recently acquired professional social network, the report said. “We had an incredible year,” chief executive Satya Nadella reportedly said.
“Our early investments in the intelligent cloud and intelligent edge are paying off, and we will continue to expand our reach in large and growing markets with differentiated innovation.” An AFP report quoted Microsoft executives as expecting another year of growth, with demand for computing on the rise and the technology giant well-positioned in that market.
“We’re investing aggressively to build Azure as the world’s computer,” Nadella reportedly said, referring to Microsoft’s cloud computing platform that competes with services run by Amazon and Google. “We expanded our global data center footprint to 54 regions, more than any other cloud provider.”
Despite continuing to invest in promising trends from cloud computing and artificial intelligence to gaming, Microsoft expected its profit margins to improve.
Revenue in a productivity and business processes category that included career-focused social network LinkedIn was up 13 percent in the quarter to $9.7 billion, according to Microsoft.
LinkedIn revenue increased 37 percent as usage soared, the earnings release indicated. LinkedIn has seen record levels of postings seeking employees due to a robust US job market, according to Microsoft chief financial officer Amy Hood.
Microsoft bought LinkedIn two years ago in a deal valued at $26.2 billion, the AFP report highlighted.