Microsoft Triumphs In Q4 Again With $64.7B In Revenue Thanks To Server Products And Cloud Services
Software giant Microsoft just rolled out its earnings for Q4 of 2024.
The financial results showed great performances related to the company’s server products and cloud services, which helped in winding up a total revenue of $64.7 billion. This included a net income of $22B during the final quarter.
Revenue growth was 15% from the previous records while net income growth was also up by 10%.
The company’s long list of server offerings and cloud services certainly get credit for this great fiscal performance as they helped generate $28.5B in total, which is a massive 19% growth seen in 2023.
Today, revenue from this particular sector makes up a whopping 45% of the overall revenue as Cloud’s earnings turn strong again.
Meanwhile, the consumer devices for Microsoft’s consumer offerings are still in decline for a repetitive seven quarters.
Coming to Windows revenue, the price paid by manufacturers for licensing Windows for different devices went up 4% YoY. As mentioned during the month’s start, the shipments for PCs grew for a repetitive three quarters which was reflected through Microsoft’s Windows OEM during the similar period.
Microsoft rolled out the latest Copilot Plus computers at the end of Q4 with an array of other devices that were powered using Qualcomm and mentioned a launch starting June 18th onwards.
On the other hand, two of the latest Surface devices were also rolled out last month. Now the change in sales that this would make wouldn’t be experienced until the start of the upcoming quarter.
Hence, this means the revenue generated through Windows and Surface went down by 11%. The final time it went up was during the first quarter of 2023.
Software giant Microsoft mentioned how the revenue for its devices would continue to fall during the upcoming quarter, hitting the lower digits as that was a true reflection of the next quarter.
Coming down to Xbox and gaming, revenue grew 61% and a lot of the credit does go to Activision Blizzard who contributed a massive 58 points to the overall scoreboard.
The company’s Xbox Game Pass offering entails 34M subscribers. The company hopes to roll out its own standard plan for this offering soon.
In other news, it also rolled out Call of Duty: Modern Warfare III through its Xbox Game Pass which would again be another attractive feature for the masses to enjoy.
But the price hikes it plans for Xbox Game Pass Ultimate will begin in September of this year with a $3 rise to hit $19.99 per month. Still, there might be a great amount of anticipation for the latest games but sales for consoles continue to be in decline. The revenue generated for hardware fell 42% in this particular quarter.
We’ve seen the software giant focusing on messages like ‘no Xbox required’ so that it could boost streaming efforts through its Cloud. Nevertheless, the revenue generated through gaming is still up 44% as a whole, thanks to the great addition in revenue by Activision Blizzard.
The revenue generated from Cloud and Office grew during the final quarter of 2024 as predicted. Meanwhile, cloud services and commercial products also rose by 12% with the revenue of Office 365 growing 13%.
Looking at the Office side of things, the revenue grew 3% YoY with subscribers hitting a 10% growth to reach 82.5M at the moment. The revenue for LinkedIn also grew by 10% in Q4.
Moving on to the company’s cloud services and server goods, the revenue generated rose by 21% while Azure and other service offerings grew by 29%. However, experts did predict the growth in this sector to be more in Q4, causing a fall in shares at NASDAQ during the after-hour trading hours.
Furthermore, we’ve got reports about investors keen on seeing any revenue growth in the AI sector of the firm. During Q4, 8 points linked to Azure and other Cloud offerings had to do with the AI services which has increased slightly than what was seen in the last quarter.
Image: DIW-Aigen
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