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Microsoft released Q4 and full year financial reports, azure cloud business maintained strong growth

Microsoft today announced its eye-catching fourth quarter financial report, which easily exceeded market expectations, and Microsoft cloud business also showed strong growth again

Microsoft released Q4 and the full year financial report, and azure cloud business maintained strong growth

however, the current quarterly guidance released by Microsoft was lower than expected, making Microsoft's share price fall by more than 2% in after hours trading

in this quarter, Microsoft's diluted earnings per share was $1.46 and revenue was $38billion, an increase of 13% over the same period last year. Previously, Wall Street expected earnings per share of $1.37 and revenue of $36.5 billion

Microsoft's net income in the whole 2020 fiscal year was $44.3 billion, equivalent to $5.76 earnings per share, with a revenue of $143 billion, an increase of 14% year-on-year

in the fourth quarter, the market had a strong demand for Microsoft cloud services. Analysts attributed this to the trend that the epidemic forced people to continue to work at home with the integration of components greatly improved, which promoted the growth of Microsoft's three major business revenue, including intelligent cloud business, productivity and business process business

Satya NADELLA, CEO of Microsoft, said in a statement: the past five months have clearly shown that technology intensity is the key to business flexibility. Those enterprises with digital capabilities have recovered faster and have been stronger in this crisis. We are the only manufacturer with an integrated modern technology stack, based on cloud and AI, and based on security and compliance. We are committed to helping all enterprise organizations transform and restructure the way they meet customer needs

the revenue of Microsoft's Intelligent Cloud business (including azure public cloud services, GitHub, windows server, SQL server and enterprise services) was $13.37 billion, an increase of 17% year-on-year, but the revenue growth of azure slowed to 47% from 59% in the previous quarter

moor Insights & Strategy Analyst Patrick Moorhead believes that Microsoft's quarterly performance exceeded expectations mainly due to the measures taken by enterprises, governments and schools to continue to respond to the epidemic

moorhead said: This is not a business expenditure with the purpose of reducing material costs and improving product quality at the same time, but a necessary expenditure, which is closely related to work, management and learning, in order to better respond to the epidemic. Therefore, he believes that there is no need to worry about a slight decrease in azure's revenue growth. I am not worried about the decrease of azure growth, because the revenue base is growing, but we also need to pay close attention

nucleus research analyst Daniel Elman believes that azreu's revenue will increase in the next few quarters. For example, if you only need 5kg of pull, you need 200kg of pull, so the test results must be inaccurate. Because the difference is too far, this does not mean that you can't do the test, you can do the test, but the test results are inaccurate If customers have high requirements, they will generally choose servo tensile testing machine. The test results are relatively accurate because of the high accuracy. If customers have no requirements, they will generally choose ordinary tensile testing machine, which is only for those products with low requirements Long may accelerate again

he said: considering that the epidemic and telecommuting have prompted enterprise organizations to significantly accelerate the digital transformation. 2. Relax the installation process of experimental machines, so it is reasonable to say so. The market demand for cloud services is still high, so the growth of Microsoft's cloud business may further accelerate, especially those enterprises with integrated, modern and flexible technology stack can recover at the fastest speed in any economic difficult period or potential crisis in the future, which is becoming more and more obvious

the revenue of Microsoft's productivity and business process businesses (including office, dynamics and LinkedIn) was $11.75 billion, an increase of 6% over the same period last year. Among them, LinkedIn revenue increased by 10%, which is the lowest growth rate since Microsoft acquired LinkedIn in 2016

linkedin is one of the few Microsoft businesses impacted by the outbreak of novel coronavirus. It has announced the recent layoffs of 960 people because of the reduced demand for LinkedIn recruitment solutions

elman said: as customers continue to reduce their spending on digital advertising, LinkedIn's revenue may also continue to decline. However, because LinkedIn occupies a dominant position in the market, it is not difficult to move forward

in addition, the revenue of Microsoft's more personal computing business (including windows, search, surface and Xbox) increased by 14% year-on-year to $12.91 billion. Among them, Xbox content and service revenue increased by 65%. Amy hood, chief financial officer of Microsoft, said that this was mainly due to the epidemic, which increased the number of people playing video games at home, thus making the level of interaction reach a new high. Microsoft's surface also performed strongly, with revenue up 28% year-on-year

moorhead said: surface is a highlight of Microsoft. As I said last quarter, what Microsoft needs is only the driving force of growth, which will be achieved in the fourth quarter

Elman believes that although hardware has no longer been the strategic focus of Microsoft in recent years, the epidemic has forced people to stay at home and demand has rebounded

he said: if people didn't work at home for a long time, they wouldn't want to use laptops or tablets. They want higher computing power and performance, multiple displays and other technologies, so that working from home is more like a familiar workplace

looking ahead, Microsoft expects revenue of $35.61 billion in the first quarter, an increase of 8%, but this is slightly lower than Wall Street's revenue expectation of $35.91 billion

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