Microsoft Corporation (NASDAQ: MSFT) stock fell over 2.3% on 31st January 2019 (Source: Google finance) as Azure clod computing sales grew more slowly than a year earlier.
MSFT in the second quarter of FY 19 has reported the adjusted earnings per share of $1.10, while the company had reported the adjusted revenue growth of 12.3 percent to $32.47 billion in the second quarter of FY 19.
The commercial cloud revenue grew 48% during the quarter. Azure, Microsoft’s flagship cloud product, had revenue growth of 76 percent in the fiscal second quarter ended Dec. 31, down from a 98 percent surge a year earlier. Azure sales increased 76 percent in the September quarter as well. The revenue from Microsoft’s productivity software unit climbed 13 percent to $10.1 billion, powered by double-digit revenue growth for LinkedIn and Office 365.
MSFT has acquired two new studios this quarter, bringing the total to 13 and more than doubling the first-party content capacity in the past six months. Xbox Live monthly active users reached a record 64 million, with the highest number of mobile and PC users to date. Xbox Game Pass subscribers and Mixer engagement also hit new all-time highs. And Minecraft, which continues to be one of the most popular and durable gaming franchises in the industry, delivered record revenue as the company expanded into new platforms, geographies and segments like education. PlayFab surpassed 1 billion player accounts this quarter, and xCloud will be public trialed later this year as the company make progress on the ambition to build a world-class gaming platform spanning mobile, PC and console.
Moreover, the company is rapidly picking up business from the retail industry in particular, which is aiming to keep pace with the e-commerce business of Amazon. This month alone, Microsoft announced deals with Walgreens Boots Alliance Inc and Kroger Co, on top of a five-year agreement with Walmart Inc it unveiled this summer.
Microsoft forecast revenue of between $29.4 billion and $30.1 billion in the current quarter. Analysts were expecting $29.9 billion, according to IBES data from Refinitiv.