In spite of an impressive Q2 2020 result released by Microsoft, it shares fell as much as 3% after-hours trading.
This fall was largely attributed to the company saying its transactional license purchasing continued to slow and that subsidiary LinkedIn was negatively impacted.
Here’s the highlight of Microsoft Q2 2020 result;
Earnings: $1.46 per share, adjusted, vs. $1.34 per share as expected by analysts, according to Refinitiv.
Revenue: $38.03 billion, vs. $36.50 billion as expected by analysts, according to Refinitiv.
Microsoft’s overall revenue grew 13% on an annualized basis in the quarter, which ended June 30, according to a statement. Revenue went up 15% in the prior quarter, which saw less impact from the coronavirus pandemic.
“The last five months have made it clear that tech intensity is the key to business resilience. Organizations that build their own digital capability will recover faster and emerge from this crisis stronger,” said Satya Nadella, chief executive officer of Microsoft.
Quick fact; The software giant maker helps businesses and individuals operate more efficiently through Microsoft suite applications that include Microsoft Office 365, Teams, Microsoft Azure. These platforms have advanced analytical tools in running tasks more efficiently and facilitating sound financial decisions.
The company also owns the world’s most popular professional networking site Linkedin and popular gaming company XBOX.
Excluding the recent after-hours move, Microsoft stock price has gained over 33% since the beginning of 2020.
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Satya Nadella, chief executive officer of Microsoft in a statement after the result was released, explained, the performance of its fastest-growing segment the Microsoft Azure, a cloud-based platform, used by most leading global businesses. He said;
“Our commercial cloud surpassed $50 billion in annual revenue for the first time this year. And this quarter our Commercial bookings were better than expected, growing 12% year-over-year,” said Amy Hood, executive vice president, and chief financial officer of Microsoft. “As we drive growth across the company, we remain committed to investing in long-term strategic opportunities.”