【ZS】【AI application monetization begins】SaaS may lay a solid foundation for operating cash flow

English summary

1. Microsoft's earnings disclosed Azure and cloud services revenue up 43% YoY, with company guidance for next quarter growth to accelerate to 45%. 365 Copilot paid seats +50% QoQ, far exceeding market expectations. Operating cash flow of USD 55.4 billion, +30% YoY. Long-term cloud order backlog of USD 678 billion, +84% YoY, providing strong certainty for future revenue. AI investment is no longer purely squeezing profits; it has converted into tangible earnings growth. 2. Seat growth + operating cash flow improvement can lay an effective foundation for the AI commercialization loop, and SaaS business models can effectively alleviate cash flow pressure from CapEx. 3. The application loop still needs continued validation in the current market, but capital expenditure has already generated incremental revenue. Recommend prioritizing software targets with low valuations, SaaS, and productized business models. Related targets: Kingsoft, Kingdee, IntSig, Zhuoyi, Xindian, Shuiyou, Yonyou, Zhiyuan, Dameng, Xinghuan