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Microsoft Revenues Jump 15 Percent

Posted April 29, 2020 | Micorsoft | Microsoft | Windows


Microsoft just reported its earnings for Q3 2020 (fiscal year). The company reported revenues of $35 billion, growing by 15% year-over-year. Its net income was $10.8 billion, growing 22% year-over-year.

Most of the growth was led by Microsoft’s Intelligent Cloud business, which brought in $12.3 billion in revenue, increasing 27% year-over-year. Azure saw a 59% growth in revenue, while revenue from Enterprise Services increased 5% and revenues from server products and cloud services increased by 30%.

On the consumer side of things, Microsoft’s More Personal Computing business generated $11 billion in revenue, growing 3% year-over-year. Windows OEM Pro revenue grew 5%, while non-Pro revenue declined 10%. Revenue from Windows commercial products and cloud services grew 17%, mostly due to increased demand for Microsoft 365.

Surface saw an increased revenue of 1%, which Microsoft attributed to the increasing demand for remote work due to COVID-19. Surface generated $1.34 billion in revenue, which is slightly over the $1.32 billion from a year ago. Revenue from Xbox content and services increased 2% due to increased engagement caused by more people staying at home, but revenue from Gaming declined by 1%.

Microsoft’s Productivity and Business Processes business reported $11.7 billion in revenue, which was also up 15% year-over-year. Revenues from Official Commercial products grew 13%, with Office 365 Commercial seats growing by 20% to nearly 258 million.

Office 365 Consumer subscribers increased to 39.6 million, up from the 34.2 million a year ago. Microsoft’s LinkedIn also reported an increase in revenue of 21%.

Microsoft said the company experienced increased cloud usage due to COVID-19 in the recent weeks, though it has seen a reduction in advertising spend in LinkedIn. The company said its Windows OEM and Surface businesses have both benefited from the increased demand caused by stay-at-home guidelines, though its Search business was impacted negatively due to reductions in advertising spend.

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