Last month, Microsoft laid off thousands of employees to restructure its sales force to better market its cloud software. For the three months ending in June, the company posted a 97 percent increase in revenue growth from Azure, the company's primary cloud software. Server products and cloud revenue also increased 15 percent.
All told, the Redmond, Wash.-based company reported that profits doubled for the quarter, its fourth, to $6.5 billion, or 83 cents per share, on $23.3 billion in revenue — a 13 percent increase from the same period a year ago.
“Innovation across our cloud platforms drove strong results this quarter,” Satya Nadella, chief executive at Microsoft, said in a company statement.
The company said profits were helped by a $1.8 billion tax gain that came as a result of a write-off of the company's struggling phone business that was not previously deductible.
Microsoft's largest business division, which is its productivity and businesses unit, brought in $8.4 billion in revenue, which is a 21 percent increase from last year. That division includes Microsoft Office.
Microsoft's revenue from its personal computing software unit was $8.8 billion, a 2 percent decrease from the previous year. That sector includes the company's phone sales and gaming consoles such as Xbox.
LinkedIn, the company's business-oriented social media platform, brought in $1.1 billion for the fourth quarter.
For the full fiscal year, Microsoft said, revenue rose 5 percent and profits jumped 26 percent.