Every week I’ll provide updates on the latest trends in cloud software companies. Follow along to stay up to date! Azure Report - Cloud Infra Looks Good! Microsoft kicked off earnings season with a bang! For software, all eyes were on Azure - which grew 31% YoY (ahead of expectations closer to 29%). What was arguably more impressive (and a better indicator of what’s to come for the rest of infrastructure software than overall Azure growth) was the Azure growth excluding AI Services (since Azure uniquely benefits from this). I have to “swag” this a bit. Azure doesn’t disclose exact Azure quarterly revenue (they disclose growth rate in absolute terms and in constant currency), but there are good estimations. So the overall Azure quarterly revenue figure is already not entirely spot on. For Azure AI Services, they just disclose the pts of growth they saw from Azure AI (which you can interpret in multiple ways..). If I take my best guess at pulling out AI Services from overall Azure, I get to the data in the below graph. As you can see, there was a nice rebound in Azure ex AI growth as well as the overall growth:
Thanks Jamin!
Would love to see FCF Yield or NTM FCF Multiples including SBC.
Really appreciate your work.
Thank you my love bye