(Mirror Daily, United States) – Microsoft was aiming to reach new records in their cloud business field, and its attempt were marked by a huge success. The company has just declared it can easily project an annual revenue of more than $20 billion. This is an important achievement, which will definitely help the company step forward.
Microsoft reached its $20 billion target
In 2015, Satya Nadella became the company’s CEO. At that moment, Microsoft earned about $6.3 billion revenue, and the new CEO wanted to hit the $20 billion milestone in 2018. Given the fact that the 2018 fiscal year started in July, then the revenue increase arrived just when it should have, or maybe even a bit earlier.
Microsoft has just announced the figures for this year, marking the reaching of their target. More precisely, the annual revenue was of $24.5 billion, with a profit of $6.6 billion. The increase can be observed even when comparing the reports with the earnings of last year. Back then, the revenue was of $20.4 billion, and the profit $4.7 billion.
The revenue increase was given by the prolific cloud business
The biggest contribution to this fruitful increase is given by the cloud business, as it brought $6.9 billion of the entire earnings. When assessing cloud’s contribution over more years, it accounts for about 14 percent of the increase, which is quite important. Microsoft is currently at the top of the cloud market, but many other companies are rapidly coming from behind.
However, cloud is the business of tomorrow, while the business of today is still represented by PC. Unfortunately, this field could have been better for Microsoft. Their revenue from gaming and Windows was a bit static, while the mobile business went off, as the company no longer produces smartphones. Even so, we can say this has been a prolific year for Microsoft, and good days are ahead of it.
Image Source: Wikimedia Commons
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