Microsoft celebrated Thursday when the company reported Fiscal Year 2015 quarter one earnings higher than expected.
Expected to report $22.2 billion, the company reported $23.2 billion in revenue, up 25 percent on a year-over-year basis. Earnings per share was posted at $.54, which is down 13 percent on a year-over-year basis.
According to Chris Suh, general manager of investor relations, restructuring charges account for the decline in EPS.
During a conference call following the release of quarterly earnings, CEO Satya Nadella said the company is moving forward with good momentum and executing on all the points he laid out in July. He mentioned specifically that the cloud’s user base is growing rapidly at 128 percent on a year-over-year basis.
“We are the only company with cloud revenue at our scale that is growing in triple digits,” Nadella said, adding that the cloud is constantly changing as new features and capabilities are added.
The earnings report showed the Devices and Customer segment revenue grew 47 percent to $10.96 billion in revenue. One highlight showed the Surface Pro 3 as responsible for $908 million in revenue. Xbox sales grew 102 percent year-over-year, adding to the increase of device sales.
Commercial cloud revenue grew to $12.28 billion, driven by Azure, Office 365, and Dynamics CRM.
“There is increasing competitiveness in our products,” Nadella said, during the question-and-answer portion of the call. “The technology that we build for our cloud is what we incorporate in our server products.” He added that this approach to building software is what makes is competitive. “We are seeing significant share gain across the entire line of products.”
Microsoft’s stock price responded to the positive earnings, increasing nearly 3 percent in after-hours trading to $46.36 per share.