Microsoft reported Azure revenue growth of 47% (up 50% in constant currency) for the quarter ended June 30th, as cloud usage increased due to shifting work and study patterns during the pandemic.
Overall, Microsoft posted revenue of $38.0 billion, and increase of 13% YoY. Operating income was $13.4 billion and increased 8%. Net income was $11.2 billion and decreased 15% GAAP (up 5% non-GAAP).
“Our commercial cloud surpassed $50 billion in annual revenue for the first time this year. And this quarter our Commercial bookings were better than expected, growing 12% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “As we drive growth across the company, we remain committed to investing in long-term strategic opportunities.”
Highlights:
Revenue in Productivity and Business Processes was $11.8 billion and increased 6% (up 8% in constant currency), with the following business highlights:
- Office Commercial products and cloud services revenue increased 5% (up 7% in constant currency) driven by Office 365 Commercial revenue growth of 19% (up 22% in constant currency)
- Office Consumer products and cloud services revenue increased 6% (up 7% in constant currency) and Office 365 Consumer subscribers increased to 42.7 million
- LinkedIn revenue increased 10% (up 11% in constant currency)
- Dynamics products and cloud services revenue increased 13% (up 15% in constant currency) driven by Dynamics 365 revenue growth of 38% (up 40% in constant currency)
Revenue in Intelligent Cloud was $13.4 billion and increased 17% (up 19% in constant currency), with the following business highlights:
- Server products and cloud services revenue increased 19% (up 21% in constant currency) driven by Azure revenue growth of 47% (up 50% in constant currency)
- Enterprise Services revenue was relatively unchanged (up 2% in constant currency)
Revenue in More Personal Computing was $12.9 billion and increased 14% (up 16% in constant currency), with the following business highlights:
- Windows OEM revenue increased 7%
- Windows Commercial products and cloud services revenue increased 9% (up 11% in constant currency)
- Xbox content and services revenue increased 65% (up 68% in constant currency)
- Surface revenue increased 28% (up 30% in constant currency)
- Search advertising revenue excluding traffic acquisition costs decreased 18% (down 17% in constant currency)