Microsoft logs 17% revenue growth at $43.1 billion riding on cloud business

Topics Microsoft | Bill Gates

Microsoft stock rose as much as 6 per cent in extended trading on Tuesday.

An impressive growth in its Azure Cloud business in a pandemic-hit year helped Microsoft post a 17 per cent increase in its revenue which reached $43.1 billion, with declaring a net income of $15.5 billion, for the quarter ended December 31, 2020.

Microsoft stock rose as much as 6 per cent in extended trading on Tuesday.

"What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry," said Microsoft CEO Satya Nadella.

"Building their own digital capability is the new currency driving every organisation's resilience and growth. Microsoft is powering this shift with the world's largest and most comprehensive cloud platform," he said in a. statement.

Revenue in Intelligent Cloud was $14.6 billion and increased 23 per cent (on-year).

Server products and cloud services revenue increased 26 per cent driven by Azure revenue growth of 50 per cent, Microsoft informed.

"Accelerating demand for our differentiated offerings drove commercial cloud revenue to $16.7 billion, up 34 per cent year over year," said Amy Hood, executive vice president and CFO, Microsoft.

"We continue to benefit from our investments in strategic, high-growth areas."

The company said that the revenue in Productivity and Business Processes was $13.4 billion and increased 13 per cent (On-year).

"Office Commercial products and cloud services revenue increased 11 per cent driven by Office 365 Commercial revenue growth of 21 per cent.

LinkedIn revenue increased 23 per cent while Dynamics products and cloud services revenue increased 21 per cent, driven by Dynamics 365 revenue growth of 39 per cent.

Revenue in More Personal Computing was $15.1 billion and increased 14 per cent.

Xbox content and services revenue has increased by 40 per cent compared to the same quarter last year. Microsoft's overall gaming revenue was up 51 per cent.

Surface laptop revenue increased 3 per cent and Search advertising revenue excluding traffic acquisition costs increased 2 per cent.

--IANS

na/


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel