D. Marie As with other giant tech giants, Microsoft Corporation (NASDAQ:MSFT) has been integrating new tactical, and strategical plans. The main reason for these plans is to improve the company’s market penetration, as well as market segmentation. One of these strategies, with regards to Microsoft, includes hiring Satya Nadella.
The main reason for hiring Nadella was due to his expertise in product management, as well as his technological vision. Microsoft believed that both of these qualities would benefit the growth of the company exponentially.
The latest earnings report for the last quarter, provide proof that this was a smart choice for the tech giant.
The Revenue reports for Microsoft
It was first anticipated that Microsoft would be reporting a revenue of $21.71 billion and an EPS of 68 cents. However, following the employment of Nadella, the company closed on 3 percent higher than what was expected. This was $22.3 billion and an EPS of 76 cents.
Following this, Microsoft announced the prediction that they would be closing the second quarter between a range of $24.65 – $25.4 billion. This total does not encompass the expense that the company will be facing.
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The reason behind the expense is due to the acquisition of LinkedIn, which is valued at $26.2 billion. The deal is expected to close by the end of the second fiscal quarter.
The breakdown of Microsoft revenue
It was reported that the performance of the Microsoft intelligent Cloud Unit was responsible for aiding the total amount in the closing of the first quarter. The division had an increase of sales by over 8 percent annually, raising it to $6.4 billion. Furthermore, allegedly the cloud services are only second to Amazon.com, Inc (NASDAQ:AMZN) web services.
Another large contribution to the revenue for the first quarter comes in the form of the Microsoft Productivity and Business Process Unit. The sales for this unit, incremented by 6 percent to a whopping $6.7 billion.
Microsoft stocks closed on $57.25 after slipping slightly by $0.28 or 0.49%
