Microsoft
announced quarterly earnings on Tuesday that met revenue expectations,
but missed on earnings. The company's shares initially fell in
after-hours trading but rebounded to trade slightly higher.
The
company reported $23.38 billion in revenue and earnings per share of
$0.55. Analysts had been expecting around $23 billion in revenue and
earnings of about $0.60 per share.
The
report is Satya Nadella's second as CEO of Microsoft after taking the
top job in February, having led the company's cloud and enterprise side.
Among
the bright spots fro Microsoft, advertising revenue from the company's
Bing search engine grew 40% and its overall share of U.S. search rose
19.2%. Revenue from Microsoft's cloud division, which has been of
particular focus for the company, jumped 147%.
“We
are galvanized around our core as a productivity and platform company
for the mobile-first and cloud-first world, and we are driving growth
with disciplined decisions, bold innovation, and focused execution,”
Nadella said in a press release. “I’m proud that our aggressive move to
the cloud is paying off – our commercial cloud revenue doubled again
this year to a $4.4 billion annual run rate.”
Microsoft
recently completed its acquisition of Nokia's devices and services
business. That area lost $0.08 per share for Microsoft. The company
missed profit expectations by $0.05 cents per share
"I
don’t think anyone should be surprised by this — if the Nokia
acquisition is going to work out well, it’s going to take a while. Still
looking like a very big 'if', though," tech journalist John Gruber
wrote in a blog post after the earnings announcement.
Nadella
is in the midst of making major changes to one of the world's biggest
and most entrenched technology companies. Microsoft is still a major
player in the PC software market, but has been slow to change with the
times. Nadella has said he wants to "reinvent productivity," by
embracing a future in which mobile and cloud computing lead the
technology industry.
Changing
a company as big as Microsoft does not necessarily mean growth as it
seeks to contract in areas that are not apart of Nadella's vision. The
company recently announced that it will cut 18,000 jobs this year.
Posted by : Gizmeon
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