Microsoft (MSFT)
Q4 Results
We have covered Microsoft on several occasions in the past. These reports can be fund here and here.
We revisit the company after the publication of the Q4 results yesterday .
Microsoft beat Wall Street estimates for fourth-quarter revenue on Tuesday, driven by growth in its cloud services and business software products.
However, growth in its Azure cloud unit came in below expectations, sending its shares down 6% after the bell. They have recovered since and were only 1.0% lower tin regular trading today.
Azure revenue in the quarter ended June rose 29%, below a 30.58% growth estimate from market research firm Visible Alpha.
Total revenue rose 15% to $64.7bn compared with analysts' consensus estimate of $64.39bn.
MSFT completed the acquisition of Activision Inc and adjusting for that, the underlying organic total revenue growth was only 12%.
Intelligent Cloud grew 18.8% (y/y) – within this Azure growth was stronger at 29%.
More Personal Computing grew at 14% but adjusting for Activision, the underlying growth was a more pedestrian 2%.
The three reporting segments are shown below. Activision will slot in under Gaming in More Personal Computing.
Productivity and Business Processes
Revenue from Productivity and Business Processes was $20.3bn up 11% slightly ahead of expectations, driven by better-than-expected results across all business units.
Intelligent Cloud Segment
In the Intelligent Cloud segment, Revenue was $28.5bn increasing 19% in line with expectations.
Within this segment, Azure and other cloud Services revenue grew 29% slightly below expectations.
Azure growth included 8 points from AI Services where demand remained higher than r available capacity.
More Personal Computing
More Personal Computing. Revenue was $15.9 n, increasing 14% with 12% points of net impact from the Activision acquisition. The underlying growth was a more modest 2%.
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