This was reported by software maker Microsoft. Strong third quarter profit On Thursday, AI technology and cloud businesssaid in a statement.
Microsoft Chief Financial Officer Amy Hood said Microsoft Cloud revenue, which includes commercial and consumer products, for the quarter was “driven by strong execution.” [from] our sales team and partners,” noting that its revenue reached “$35.1 billion, an increase of 23% year-over-year.” According to the financial report, the number of Microsoft 365 consumer subscribers increased to 80.8 million.
Microsoft shares rose 4% in after-hours trading to trade at about $415 after the company reported earnings that beat Wall Street expectations.
In the period, the software company had revenue of $61.9 billion, or earnings of about $2.94 per share. Analysts had expected earnings of $60.63 billion, or about $2.81 per share.
This increase in revenue may have been the driving force. It is powered by a suite of AI systems offered through the cloud computing platform Azure. “Currently, more than 65% of Fortune 500 companies are using his Open AI services in Azure,” Microsoft CEO Satyanadera told investors on an earnings call.
Systems provided by Microsoft include Copilot and the Copilot stack. The figures for tools available to create images and documents are not included in the financial statements.of However, the AI assistant tool requires a subscription price It costs $30 per month or $360 per year.
Microsoft's Nadella added that Copilot and the Copilot stack are orchestrating a new era of AI transformation, “driving better business outcomes across every role and industry.” Microsoft's AI products are primarily billion dollar investment and company Recently, such as OpenAI coca cola.
“We will continue to innovate and partner extensively to give our customers the best choice of frontier and open source models,” Nadella told investors on an earnings call.
In the personal computing space, Microsoft saw an increase in revenue from Xbox and gaming. Xbox content and services, including Xbox Game Pass, grew 62% during the period. Thanks in part to the acquisition of Activision Blizzard.. Microsoft's Mr. Hood said on the earnings call that this increase was primarily due to the following factors: call of duty Purchased item.
That's despite device sales dropping 17% in the third quarter.Sales of personal devices are mainly last year faced challenges The same goes for Microsoft after it launches its new Surface devices. But Microsoft's Hood said that's because the company “continued to focus on high-margin premium products.”
