The net profit leaped 35 percent to Dollars 7.4 billion, with diluted earnings per share up 36 percent to USD 0.95.
Non-Pro revenue continued to slide, now down 8% year on year, possibly indicative of consumers pivoting more and more to other platforms, and Microsoft concentrating increasingly on enterprise customers.
Microsoft Corp on Thursday topped for quarterly profit as the technology company signed up more businesses to its Azure cloud computing services and Office 365 productivity suite. Surface revenue surged by 32 percent, while gaming ralso saw a pretty significant bump of 18 percent driven by software and services growth.
The company also returned $6.3 billion to shareholders in dividends and share repurchases in the third quarter 2018, an increase of 37%. Including contributions from cloud-based versions of its Office productivity software and online gaming subscriptions, recurring revenue streams now account for about 30 percent of Microsoft's sales, said Michael Nemeroff, an analyst at Credit Suisse. Server products and cloud services grew 20% (17% CC), and server products alone grew by 3% (1% CC).
Revenue in the Productivity and Business Processes segment was up 17% from the same period in 2017, hitting the $9 billion mark.
But its cloud computing numbers stood out yet again as the company reported Azure revenue growth of 93%. Weiss expects commercial Office 365 sales to jump 38% in the period, compared to a 41% increase in fiscal Q2. Instead, it's only saying that previous year was low due to product end-of-life. Xbox Live monthly active users grew 13% YoY to 59 million, which is around where it was last quarter.
Earnings per share of $0.95 were up 36 per cent from the year-ago quarter and ahead of the $0.85 estimate given by analysts. Search advertising acquisition costs increased 16 percent, driven by higher revenue per search, and search volume.