IBM has released its financial report for the fourth quarter 2017, reporting a revenue of US $22.5 billion, with cloud revenue pulling its weight with a 30 percent increase.
While IBM sales have taken a big hit in the last couple of years, the company has finally managed to report a positive quarter, with revenues hitting US $22.54 billion, which is up by 3.5 percent compared to the same quarter last year. While its net income was actually down, reporting a net loss of US $1.05 billion, with earnings per share at US -$1.14 due to the tax hit.
The big winner was the cloud revenue which ended at US $5.5 billion, up by 30 percent compared to the last year. It also managed to get a positive result from Cognitive Solutions, Systems, and Global Business Services, while Technology Services and Cloud Platforms were actually down by 1 percent at US $9.2 billion.
“Our strategic imperatives revenue again grew at a double-digit rate and now represents 46 percent of our total revenue, and we are pleased with our overall revenue growth in the quarter,” said Ginni Rometty, IBM chairman, President and Chief Executive Officer. “During 2017, we strengthened our position as the leading enterprise cloud provider and established IBM as the blockchain leader for business. Looking ahead, we are uniquely positioned to help clients use data and AI to build smarter businesses.”
According to the conference call transcript from Seeking Alpha, IBM’s Martin Schroeter, SVP of global markets at IBM, said that the company is currently in a process of moving a big part of its SaaS (System-as-a-Service) properties to the cloud and has “a lot of scale coming” their way.
IBM was not keen to talk about the recent workforce details where the company is reportedly looking to redeploy a big part of its employees.
On the heels of the quarterly report, IBM has also announced a new strategic partnership with Salesforce, combining the IBM Cloud and Watson services with Salesforce Quip and Salesforce Service Cloud Einstein, both artificial platforms that will have a big impact on the AI and big data enterprise market.
According to IBM’s CEO, Ginni Rometty, the combination of Watson and Einstein will “help enterprises make smarter business decisions”.
Hopefully, IBM will manage to keep its financial reports in the green, despite big competition in the market.