Microsoft reported strong second quarter results, as the company said its commercial cloud annual run rate tops $14 billion.
Commercial cloud run rate is calculated by taking revenue from the last month of the quarter for Office 365 commercial, Azure, Dynamics 365, and other cloud properties and multiplying it by 12.
The company's various business units are intersecting with the cloud. For instance, Microsoft said that four out of five new Dynamics enterprise customers went with the cloud-based Dynamics 365.
Microsoft has also broadened its reach as the company noted that 65 million monthly active devices are using Office on iOS and Android, double the amount last year. In addition, Surface revenue was $1.32 billion in the second quarter, down from $1.35 billion a year ago.
Microsoft reported fiscal second quarter earnings of $5.2 billion, or 66 cents a share, on revenue of $24.1 billion. Non-GAAP earnings were 83 cents a share on non-GAAP revenue of $26.1 billion for the fiscal second quarter.
Wall Street was expecting Microsoft to report fiscal second quarter non-GAAP earnings of 79 cents a share (67 cents net) on revenue of $25.3 billion.
Microsoft completed its LinkedIn purchase on Dec. 8 and lumped the results in the productivity and business processes unit. LinkedIn brought in revenue of $228 million and a net loss of $100 million for that time period.
In a statement, CEO Satya Nadella said the company is focusing its cloud efforts on artificial intelligence as a way to grow.
Like most Microsoft quarters, there is a lot to digest. Among the key items:
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