Microsoft Gets a Boost From the Cloud

Story updated from 4:32 p.m. with Nadella's vision for Microsoft in paragraphs three to five and CFO guidance after 12th paragraph.

NEW YORK (TheStreet) -- Microsoft (MSFT) was adding more than 2% in extended-hours trading after reporting better-than-expected fiscal 2014 third quarter earnings and in-line revenue amid a surge in Azure, Office 365 and Surface sales.

"This quarter's results demonstrate the strength of our business, as well as the opportunities we see in a mobile-first, cloud-first world," Microsoft CEO Satya Nadella stated in the earnings release. "We are making good progress in our consumer services like Bing and Office 365 Home, and our commercial customers continue to embrace our cloud solutions. Both position us well for long-term growth. We are focused on executing rapidly and delivering bold, innovative products that people love to use."

Nadella went on to add during the company's earnings call that Microsoft "wants to build products that people love to use," and that usage will increasingly be the leading indicator of the company's long-term success.

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"Our industry does not respect tradition, it only respects innovation," he explained.

Nadella said that in the coming months, the company will continue to concentrate on "rock solid" execution, "pivoting the company towards future" by pushing hard and moving quickly in building and developing products for the "mobile-first, cloud-first world."

The company posted net income of $5.66 billion, or 68 cents a share, vs. $6.055 billion, or 72 cents a year earlier. Revenue was $20.403 billion versus $20.489 billion the prior year. Microsoft was expected to earn 63 cents a share on revenue of $20.4 billion, according to Bloomberg data.

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