Microsoft’s cloud, gaming bet pays off as it logs $29.1 billion in revenue

Gaming revenue increased 44 % with Xbox software and services revenue growth of 36 % while Surface revenue increased 14 %.

Microsoft reported net income of $8.8 billion on revenue of $29.1 billion in the quarter that ended on September 30. (AFP)

Riding on its growing Cloud, gaming and Surface laptop portfolio, Microsoft has posted a revenue of $29.1 billion and net income of $8.8 billion for the first quarter of its 2019 financial results.

Revenue was up 19 per cent while net income increased by 34%. Operating income was $10 billion and increased 29 per cent.

"We are off to a great start in fiscal 2019, a result of our innovation and the trust customers are placing in us to power their digital transformation," said Microsoft CEO Satya Nadella.

"We're excited to help our customers build the digital capability they need to thrive and grow, with a business model that is fundamentally aligned to their success."

Revenue in Intelligent Cloud was $8.6 billion and increased 24%. Server products and Cloud services revenue increased 28% driven by Azure revenue growth of 76 per cent.

Revenue in More Personal Computing was $10.7 billion and increased 15 %. "Windows commercial products and Cloud services revenue increased 12%," said the company.

Gaming revenue increased 44 % with Xbox software and services revenue growth of 36 % while Surface revenue increased 14 %.

"Our record results for Q1 reflect our commitment to long-term strategic investments and consistent execution to drive revenue growth and operating margin expansion," said Amy Hood, Executive Vice President and Chief Financial Officer of Microsoft.

"We see continued demand for our cloud offerings, reflected in our commercial cloud revenue of $8.5 billion, up 47% year over year," Hood added.

LinkedIn revenue increased 33 % with record levels of engagement highlighted by LinkedIn sessions growth of 34%.