Microsoft posted its fourth quarter of 2019 finanical results this week, reporting a revenue of $33.7 billion and net income of $13.2 billion. This is a large increase year-over-year, setting a record fiscal year for Microsoft. This pushed MSFT shares up 3%, helping Microsoft keep its $1 trillion company value. Microsoft was first valued at $1 trillion in this quater, mainly due to its continued growth in cloud and diverse businesses.
Quick glance from the earnings report:
- Windows OEM Pro revenue grew by 18%, driven by “healthy Windows 10 demand” and mainly because of Windows 7 reaching end of support.
- Office Commercial products and cloud services revenue increased by 14%, with Office 365 Commercial revenue growing by 31%.
- Microsoft’s Bing Search advertising business saw an increase of 9% in revenue.
- Azure revenue grew by 64%, with Microsoft’s entire Intelligent Cloud business .bringing in $11.4 billion in revenue, a 19% increase.
- Gaming revenue declined by 10%, with Xbox software and services revenue also declining by 3%.
- Surface revenue has grown by 14%, totalling $1.3 billion. Growth is driven by strong growth in its commercial segment .
- Revenue generated by Office Consumer products and cloud services grew by 6%, with Office 365 Consumer subscribers growing to 34.8 million.
Microsoft reported that the Surface revenue grew 14% year-on-year. The revenue was $1.35 billion, and this is the eighth consecutive quarter for Microsoft to hit billion dollar revenue with hardware sales. Thanks to Surface Go, Pro and discounts on all Surface products being quicky adapted into many large corpations, Microsoft enjoyed a decent quarter in terms of sales.