The professional social network LinkedIn's membership has swelled to 500 million, as its user base showed steady growth following its acquisition last year by Microsoft. (Pic: Justin Sullivan, AFP)
Washington - Microsoft on Thursday reported a strong jump in profits in the just-ended quarter but revenue fell short of expectations in the tech giant's first earnings report incorporating social network LinkedIn.
Net profit rose 28% to $4.8bn while revenues edged up 8% to $22.1bn in the quarter ending March 31, Microsoft said.
Shares in Microsoft fell 1.8% in after-hours trade on the results.
The earnings for Microsoft's fiscal third quarter come as chief executive Satya Nadella seeks to reduce the tech giant's focus on software, shifting to cloud computing and business services.
"Our results this quarter reflect the trust customers are placing in the Microsoft cloud," Nadella said in a statement.
"From large multi-nationals to small and medium businesses to non-profits all over the world, organisations are using Microsoft's cloud platforms to power their digital transformation."
Microsoft reported revenue gains in cloud and business service operations, which offset a drop in "personal computing", which includes the Windows operating system that once made up its core business.
Microsoft said revenue from its "Intelligent Cloud" rose 11% from a year earlier to $6.8bn.
LinkedIn, the professional social network acquired by Microsoft last year for some $26bn, contributed revenue of $975m.
Microsoft said its Office commercial products and cloud services revenue increased 7%.
Office consumer products and cloud services revenue rose 15%, as the number of Office 365 consumer subscribers increased to 26.2 million.
But revenue from its Surface family of tablet computers slumped 26% from a year ago, suggesting more woes for Microsoft's hardware efforts.
Search advertising revenue rose 8% while gaming from its Xbox operations saw a 4% rise.Read Fin24's top stories trending on Twitter: