Riding once again on its growing Cloud business in the pandemic times, Microsoft reported its fiscal Q1 results, generating $37.2 billion in revenue (up 12 per cent as compared to same period last year) and $13.9 billion in net income (that increased 30 per cent).
Stocks went up on Tuesday as the revenue in Intelligent Cloud reached $13 billion and increased 20 per cent. Azure Cloud business was up 48 per cent.
The revenue in Productivity and Business Processes was $12.3 billion and increased 11 per cent, Microsoft said in a statement.
“The next decade of economic performance for every business will be defined by the speed of their digital transformation,” said CEO Satya Nadella.
“We are innovating across our full modern tech stack to help our customers in every industry improve time to value, increase agility, and reduce costs,” he added.
The Microsoft Office Commercial products and cloud services revenue increased 9 per cent, driven by Office 365 Commercial revenue growth of 21 per cent.
The Office Consumer products and cloud services revenue increased 13 per cent and Microsoft 365 Consumer subscribers increased to 45.3 million.
“Demand for our cloud offerings drove a strong start to the fiscal year with our commercial cloud revenue generating $15.2 billion, up 31 per cent year over year,” said CFO Amy Hood.
“We continue to invest against the significant opportunity ahead of us to drive long-term growth.”
While LinkedIn revenue increased 16 per cent, Microsoft Dynamics products and cloud services revenue increased 19 per cent.
The revenue in the ‘More Personal Computing’ segment was $11.8 billion and increased 6 per cent.
“Xbox content and services revenue increased 30 per cent while Surface laptop revenue increased 37 per cent,” Microsoft said.
Search advertising revenue excluding traffic acquisition costs decreased 10 per cent.
Microsoft returned $9.5 billion to shareholders in the form of share repurchases and dividends in the first quarter of fiscal year 2021, an increase of 21 per cent compared to the first quarter of fiscal year 2020.