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Microsoft CEO predicts wave of new apps and software expertise

Microsoft delivered more than $125 billion in revenue for the full year with double-digit top line and bottom line growth, says CEO Satya Nadella. “Our Commercial Cloud business is the largest in the world surpassing $38 billion in revenue for the year with gross margin expanding to 63%. I’m proud of what we've accomplished over the last 12 months, and I'm energized by the tremendous opportunity ahead, he told analysts after the company’s latest quarterly results.

Amy Hood, EVP & CFO says that in its commercial business, she expects continued customer demand to drive commercial unearned revenue up 11% to 12% year-over-year with volatility based on contract type. Commercial cloud gross margin percentage will be up slightly on a sequential basis.

CEO Satya Nadella looks forward to a software-based world: “500 million new apps will get created in the next five years and more than the total created in the last forty. Businesses will need to empower domain experts with tools to create applications as well as robotic process automation to streamline and customize workflow like service monitoring and time and expense tracking.”

“Marketing Solutions is now our fastest growing business, with new brand and community building tools that make it easier for marketers to connect with LinkedIn’s 645 million members. And we are enabling every business to drive a culture of relationship selling and take full advantage of their social networks.”

And we expect capital expenditures to be roughly in line with Q4 as we continue to invest to meet growing demand for our cloud services.