Thursday, April 30, 2020

Microsoft revenue beats estimates as Covid-19 crisis boosts cloud business


Microsoft benefited from strong demand for its Teams collaboration software, which now has 75 million users.


Microsoft Corp on Wednesday beat Wall Street sales and profit expectations, powered by sharp demand for its Teams chat and online meeting app and Xbox gaming services as the world shifted to working and playing from home because of the novel coronavirus pandemic.

The company's shares, up over 12 per cent this year, rose about 5 per cent in extended trading.

The results reflect Chief Executive Satya Nadella's focus over his six-year tenure on cloud computing, in which companies tap Microsoft's data centres for computing power - a growing business dominated by Amazon.com Inc's Amazon Web Services.
For the fiscal fourth quarter, Microsoft gave business-unit forecasts that were below analyst estimates, predicting tough times for LinkedIn and some small-business software sales.

"Ultimately, Microsoft is not immune from what is going on broadly in the world in terms of GDP growth," Nadella said on a conference call with investors.
But results benefited from sales of its Windows operating system and Surface hardware devices as people upgraded personal computers to work or study from home. Microsoft also cited all-time-high engagement on its Xbox Live gaming service, with 19 million active users.


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