REDMOND (Wash.) — Microsoft’s cloud computing business saw a 24% increase in profit in the quarter ended July-September compared to the same period last year.
Redmond, Washington-based tech company reported Tuesday a quarterly profit of $17.2 million, or $2.27 per Share. This beat Wall Street expectations of $2.08 Per Share.
Microsoft’s profits have skyrocketed during the pandemic because of continued demand for its software, cloud computing services and remote work.
Microsoft reported revenue of $45.3 Billion in its fiscal first quarter. This is 22% more than last year. According to FactSet Research, analysts had expected revenue of $44 billion. Microsoft stock rose nearly 2% after-hours trading.
Microsoft’s “intelligent clouds” segment saw sales of $17 billion. This is 31% more than a year ago. It has fiercely competed with Amazon, Google, and other cloud providers for large business and government contracts.
The personal computing segment of Microsoft’s business, which includes Windows software licensing for new computers, saw a slower rate of growth. The segment saw a 12% increase in sales to $13.3 billion.
Microsoft has unveiled Windows 11, the new generation of its Windows software. This is its sixth major update in six year. However, the supply chain issues have also affected the PC market.
The revenue from Microsoft’s LinkedIn jobs network service increased by 42% over the previous year. In a statement earlier this month, stated that it would be closing down its localized version LinkedIn in China. This was due to tightening government restrictions. It is the only major Western social network platform that is still in operation in China.
LinkedIn does not disclose how much of its revenue is from China. However, it reports that it has more than 54,000,000 members in China, making it the third-largest user base, after India and the U.S.
Microsoft Tuesday also reported a $3.3 billion short-term tax advantage from the transfer of certain intangible assets from its Puerto Rico subsidiary. The Internal Revenue Service had been investigating the company’s Puerto Rico facility structure since 2005. A federal judge last year ruled that Microsoft likely tried to avoid paying U.S. taxes by cost-sharing arrangements with the affiliate.