{"id":42542,"date":"2021-10-27T09:57:05","date_gmt":"2021-10-27T09:57:05","guid":{"rendered":"http:\/\/icloud.pe\/blog\/?guid=e9ac445f7efc2e17410ed2ce5d007ff0"},"modified":"2021-10-27T09:57:05","modified_gmt":"2021-10-27T09:57:05","slug":"google-and-microsoft-smash-estimates-on-strong-cloud-growth","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/google-and-microsoft-smash-estimates-on-strong-cloud-growth\/","title":{"rendered":"Google and Microsoft smash estimates on strong cloud growth"},"content":{"rendered":"


\n Connor Jones<\/a><\/span>
\n <\/span><\/p>\n

\n
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27 Oct, 2021<\/span><\/div>\n<\/p><\/div>\n<\/div>\n

\n<\/a><\/p>\n

\n

Google and Microsoft\u00a0reported\u00a0their latest quarterly earnings on Tuesday with cloud services and hybrid work<\/a> proving a boon for both tech giants.\u00a0<\/p>\n

Microsoft announced that for\u00a0Q1 2022<\/a>, it recorded $45.3 billion (\u00a332.9 billion) in revenue, an increase of 22%, while profits were also up an impressive 48% at $20.5 billion (\u00a314.9 billion).<\/p>\n

<\/p>\n

\nGoogle’s Q3 2021 earnings<\/a> revealed a continuation of its long-running track record of smashing revenue figures year after year. It amassed reveue<\/span> of $65.1 billion (\u00a347.4 billion) for the three month period, which represents a a 41% increase compared to Q3 in 2020 which stood at \u00a0$46.1 billion (\u00a333.5 billion).<\/p>\n

Following the earnings announcement, Google’s share price soared just shy of 18 points (0.65%) while Microsoft enjoyed a similar increase of 0.64%.<\/p>\n

Commenting on the news,\u00a0Sundar<\/span> Pichai<\/span>, CEO at Alphabet and Google, said: \u201cFive years ago, I laid out our vision to become an AI-first company. This quarter\u2019s results show how our investments there are enabling us to build more helpful products for people and our partners.<\/p>\n

“Ongoing improvements to Search, and the new Pixel 6<\/a>, are great examples. And as the digital transformation and shift to hybrid work continue, our Cloud services are helping organisations collaborate and stay secure.\u201d<\/p>\n

Satya Nadella, CEO of Microsoft, said:\u00a0\u201cDigital technology is a deflationary force in an inflationary economy. Businesses \u2013 small and large \u2013 can improve productivity and the affordability of their products and services by building tech intensity.<\/p>\n

\u201cThe Microsoft Cloud delivers the end-to-end platforms and tools organisations need to navigate this time of transition and change.\u201d<\/p>\n

One commonality from both companies’ earnings is that cloud services drove figures higher, and in Google’s case, much higher than ever before.<\/p>\n

Google generated an additional $1.5 billion (\u00a31.09 billion) revenue for Google Cloud this quarter compared to Q3 2020 with a total $4.9 billion (\u00a33.5 billion). That said, Google Cloud<\/a> is still operating at a loss with income down $644 million (\u00a3469.06 million) – quite a\u00a0considerable drop and a bigger loss than last quarter which stood at $591 million (\u00a3430.6 million). Though the figures are improving year-on-year as Q3 2020’s losses stood at $1.2 billion (\u00a3874.6 million).<\/p>\n

“With more than 40% year over year growth, Google experienced a huge jump, and one that even surpassed Wall Street\u2019s original forecast,” said\u00a0Anthony Denier, CEO at trading platform Webull<\/span>.” The company\u2019s earnings per share grew 71% year over year to $27.99 (\u00a320.38) \u2013 way past the original estimate of $23.48 (\u00a317.10).”<\/p>\n

Microsoft’s cloud revenues continued to impress investors with Intelligent Cloud up 31% to $17 billion (\u00a312.3 billion) while revenue from server products and cloud services increased 35%, driven by\u00a0a business-leading revenue growth rate of 50% thanks to Azure<\/a> and other cloud services<\/a>.<\/p>\n

Consumer and business Office services\u00a0also enjoyed a strong quarter, factoring into rising cloud revenues too. Office Commercial products and cloud services revenue increased 18%, largely driven by the 23% revenue growth of Office 365 Commercial.\u00a0Office Consumer products and cloud services revenue increased 10% with consumer subscribers increasing to 54.1 million.<\/p>\n

Other strong areas for Microsoft included LinkedIn<\/a>\u00a0revenue which increased 42% and Windows OEM revenue which increased 10%. Google reported consistently better results across most corners of the business. Search revenue was up to $37.9 billion (\u00a327.6 billion) this quarter, a staggering $11 billion (\u00a38 billion) increase year-on-year.\u00a0 <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Connor Jones<\/p>\n

27 Oct, 2021 <\/p>\n

Google and Microsoft\u00a0reported\u00a0their latest quarterly earnings on Tuesday with cloud services and hybrid work proving a boon for both tech giants.\u00a0
\nMicrosoft announced that for\u00a0Q1 2022, it record…<\/p>\n","protected":false},"author":507,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-42542","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/42542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/507"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=42542"}],"version-history":[{"count":1,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/42542\/revisions"}],"predecessor-version":[{"id":42543,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/42542\/revisions\/42543"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=42542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=42542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=42542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}