A 76 percent increase in Azure revenues helped drive Microsoft to a record quarter (reported by the company as Q1 2019), with net income hitting a healthy $8.8 billion, up 34 percent year-on-year.
Commercial cloud revenues topped $8.5 billion, an increase of 47 percent on the same quarter last year. Office 365 commercial seat growth was down to 29 percent from 32 percent in Q1 2018.
— Microsoft (@Microsoft) October 24, 2018
Gaming was another strong spot for the company, with gaming revenue increasing 44 percent, on Xbox software and services revenue growth of 36 percent; mainly from third-party title strength.
“We are off to a great start in fiscal 2019, a result of our innovation and the trust customers are placing in us to power their digital transformation,” said Microsoft CEO Satya Nadella. “We’re excited to help our customers build the digital capability they need to thrive and grow, with a business model that is fundamentally aligned to their success.”
Microsoft Earnings: LinkedIn Also Growing Fast
LinkedIn also showed impressive growth, with revenue increasing 33 percent (up 33% in constant currency) to $382 million, with record levels of engagement highlighted by LinkedIn sessions growth of 34 percent.
“Our record results for Q1 reflect our commitment to long-term strategic investments and consistent execution to drive revenue growth and operating margin expansion,” said Amy Hood, Microsoft’s CFO.
She added: ““We see continued demand for our cloud offerings, reflected in our commercial cloud revenue of $8.5 billion, up 47% year over year.”
To be updated with conference call details