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Microsoft 's cloud expands profitability

Microsoft’s cloud service and annual ‘subscription’ strategy continues to work for shareholders.

The latest financial results showed an 8% increase in revenue from their Office consumer products and cloud services.  There are now 24 million Office 365 consumer ‘subscribers’.

As always, we put the word ‘subscription’ in quote marks.  The annual payment for Office 365 isn’t a ‘subscription’, it’s rent or an annual fee for a service.  The service will be withdrawn if you don’t renew.  Microsoft uses ‘subscription’ because it’s a better marketing phrase that people find more acceptable.

One thing of interest in the Microsoft results is the way they are presented on their web site.  They present the current and past results using Power BI.

A good example of what’s possible in Excel these days. You can select from the buttons to see various performance measures over various time scales and periods.

Go to the Microsoft site and download Office documents with the presentation slides, earnings call transcript and worksheet version of the financial statements.

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