Earnings for the quarter were US $ 1.82 per share, exceeding the forecast of US $ 1.55 per share.
“The next decade of economic performance for any business will be defined by the speed of their digital transformation,” Nadella told a call with analysts on Tuesday.
Analysts say the company’s business growth is still in its infancy.
“This change in the cloud and the dynamics of the WFH looks here to stay, and the company will be the biggest user of this trend,” Wedbush analyst Dan Ives said in a note to investors on Tuesday.
Investors may have concerns about Azur’s growth rate, however, despite strong earnings. Shares of Microsoft fell nearly 2% after trading on Tuesday night. Azur’s revenue growth rate during the quarter of 48% decreased from 59% in the same period last year.
Some analysts, however, argue that this slowdown should be expected given the large size of the business. Nadela said on Tuesday that she expects technology costs to double in the next 10 years.
Gaming is also a great opportunity for Microsoft to grow.
“Gambling is one of the largest and fastest growing forms of entertainment in the world. We expect to have more than $ 200 billion in revenue in this industry by 2021,” Kyle Wickstrom, Microsoft’s director of investor relations, told CNN. Ann Business.
“We’re seeing a really great early response to the console that will be launched next quarter,” Wickstrom said.
Correction: Kyle Wickstrom, Microsoft’s director of investor relations, said the company expects more than $ 200 billion in gaming revenue in 2021. The previous version of this story says it is expected in 2020.