Some yoy cloud gains from Microsoft, AWS, Google. Also Atlassian (TEAM) who are big players in the software development tooling space.
All of these cloud companies/divisions are in super if not hyper-growth mode imo.
MSFT Azure: +49% (Part of the Intelligent Cloud segment which is $19B in quarter).
AWS: +37% ($18.4B in quarter)
Google Cloud: 44% ($5.8B - GCP growing faster than Google cloud)
TEAM: +30% - “Quarterly subscription revenue grew 59% year-over-year (=$555m). Cloud revenue grew 60% year-over-year while Data Center revenue grew 59% year-over-year”.
Certainly seems to be backing up Satya Nadella’s assertion that no-one is slowing down on digital transformation.
From the TEAM shareholder letter:
“Looking ahead, we expect Cloud revenue to grow approximately 50% year-over-year for FY23 and FY24…”. They are pushing users to cloud, but still appears very bullish given that Cloud is already over 50% of revenue.
So far, this earnings season has been very positive from my viewpoint. The longer term trends are intact, and there doesn’t seem to be any observable (or expected) slowdown. To state the obvious, it suggests a lot of the compression over the last 5 months is macro related rather than any particular issues with these businesses or the demand for their services.
Long GOOGL, MSFT, tiny position in TEAM