On October 25th, according to the CNBC website, Microsoft today released its first fiscal quarter earnings report for the fiscal year ending September 30th. The financial report showed that Microsoft's first-quarter revenue was $29.08 billion, an increase of 18.5% compared with $24.54 billion in the same period last year; net profit was $8.82 billion, an increase of 34.0% compared with $6.58 billion in the same period last year. After Microsoft announced that its first-quarter earnings exceeded expectations, its share price rose 4% on the Nasdaq's after-hours trading on Wednesday.
Here are the key figures for Microsoft's first-quarter earnings:
Revenue:290.80 billion US dollars, an increase of 18.5%. Analysts surveyed by Refinitiv had an average forecast of $27.9 billion, and revenue growth is expected to be 13.7%, slightly lower than 14% for the entire FY18.
· Microsoft's largest business unit —— More Personal Computing, including Windows, devices, games and search advertising —— first quarter revenue of $10.7 billion, It grew 15% year-on-year, exceeding the average estimate of $10.18 billion by analysts surveyed by financial information provider FactSet.
· Microsoft's productivity and business process divisions, including Office, Dynamics and LinkedIn, generated $9.8 billion in revenue, up 19% year-over-year, higher than the average estimate of $9.39 billion from analysts surveyed by FactSet. In the first quarter, the company's Office 365 product had 32.5 million consumer users, up from 31.4 million in the previous quarter.
· Microsoft's intelligent cloud division includes server products and cloud services (including Azure) and consulting and service support, the department's first quarter revenue of $ 8.6 billion, an increase of 24% over the same period, beyond the analyst of the FactSet survey The average estimate is $8.29 billion.
Capital expenditures:In the first quarter, Microsoft's capital expenditure was $4.3 billion, a year-on-year increase of 59%. In FY18, Microsoft's capital expenditures increased by 33%.
income:Net profit was $8.82 billion, an increase of 34.0% compared to $6.58 billion in the same period last year. Excluding certain items, diluted earnings per share were $1.14, compared with an average of $0.96 for analysts surveyed by Refinitiv (Thomson Reuters' Financial and Risk Industry).
At a earnings conference call on Wednesday, Microsoft Chief Financial Officer Amy · Amy Hood told analysts that the company expects second-quarter revenues to be between $31.9 billion and $32.7 billion, including Includes contributions from GitHub, an open source code-sharing community that has not yet completed the acquisition. According to Refinitiv's survey, analysts had expected the company's second-quarter revenue to be $32.25 billion.
Microsoft continues to emphasize the growth of its enterprise-centric cloud computing services. The company is leveraging the Azure cloud business to challenge public cloud market leader Amazon Web Services (AWS) to add enterprise users to its Office 365 cloud productivity application portfolio, which competes with Alphabet's Google G Suite and tries Take market share from Salesforce with its Dynamics 365 software.
Microsoft's first-quarter earnings report differs in that Microsoft began to include LinkedIn revenue in commercial cloud computing, including revenue from products such as LinkedIn Recruiter. In a report to investors last month, Microsoft showed how to increase the revenue of business social networking site LinkedIn to commercial cloud computing revenue in FY18, which will increase its total revenue in the first quarter by about 3.4 billion. The US dollar is growing by nearly 15%.
In the first quarter, Microsoft Azure Cloud Services revenue increased by 76% year-on-year, down from 89% in the previous quarter. Microsoft’s chief financial officer Hood said in a conference call with analysts after the earnings report that Azure’s first-quarter performance was in line with Microsoft’s expectations.
In recent days, some analysts have said they expect Azure's growth to slow. In a report sent to customers last Sunday, Evercore ISI analysts led by Kirk · Matten predicted Azure to grow 78%. Timothy Horan, a senior analyst at market research firm Oppenheimer, attributed the slowdown in Azure growth to the law of large numbers. (Amazon's cloud business grew even more slowly, with revenues of $6.11 billion in the second quarter, up 49% year-on-year.)
Microsoft has not disclosed how much revenue Azure can bring, but market research firm Evercore analysts estimate that Azure generated $7.74 billion in revenue for Microsoft in FY18. At this scale, Azure accounts for 7% of Microsoft's total annual revenue.
Microsoft CEO Satya Nadella said in a conference call: "No customers want to rely on a supplier that sells technology to them at one end and competes with them at the other end. ”
In the regular transaction on Wednesday, Microsoft shares closed at $102.32, down 5.35%, the worst day since October 10. However, in the after-hours trading after the financial season, Microsoft's share price rose 1.79% to $104.15 before the deadline. In the past month, the stock has fallen by nearly 11%, but it has risen nearly 20% since the beginning of the year.
In the first quarter, Microsoft acquired Lobe, a small AI startup based in San Francisco, to launch a free version of the Teams app, while Nadella sold about 30% of its shares in Microsoft.