The world’s most valuable software maker, Microsoft, announced impressive earnings results for the quarter that ended on December 31, 2020, as data retrieved showed that the $1.75 trillion company saw increased demand on its work-at-home tools triggered by the reduced human mobility presently in play.
- Microsoft disclosed that Azure’s revenue grew by 50% as more businesses integrated into the cloud.
- Stock experts had expected around 42% growth, although the software giant didn’t reveal Azure’s revenue in dollars.
- The COVID-19 pandemic caused many businesses to speed up moves to the cloud and upgrades to internet-based collaboration software.
The Productivity and Business Processes segment, including LinkedIn, Office, and Dynamics, printed $13.35 billion in revenue, which was up 13% and more than the $12.89 billion anticipated by wall street experts.
“What we have witnessed over the past year is the dawn of the second wave of the digital transformation sweeping every company and every industry,” said Satya Nadella, Chief Executive Officer of Microsoft.
“Building their own digital capability is the new currency driving every organization’s resilience and growth. Microsoft is powering this shift with the world’s largest and most comprehensive cloud platform.”
Microsoft Corp. announced its earnings results for the quarter ended December 31, 2020, as compared to the corresponding period of last fiscal year:
- Revenue was $43.1 billion, increasing by 17%.
- Operating income was $17.9 billion, increasing by 29%.
- Net income was $15.5 billion, increasing by 33%.
- Diluted earnings per share were $2.03, increasing by 34%.
Earnings: $2.03 per share, adjusted, vs. $1.64 per share as expected by Wall Street analysts, according to Refinitiv.
“Accelerating demand for our differentiated offerings drove commercial cloud revenue to $16.7 billion, up 34% year over year,” said Amy Hood, Executive Vice President, and Chief Financial Officer of Microsoft. “We continue to benefit from our investments in strategic, high-growth areas.”