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Microsoft Announces Soaring Quarterly Earnings

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Microsoft records soaring quarterly earnings

Microsoft seems to have gotten off to an amazing start this year. Its results for the final quarter of last year have finally come in and it’s looking all green.

According to the report, it secured a total revenue of $43.1billion in the quarter.

Compared to results from the same quarter in 2019, the current result shows a 17% rise. Net income has also gone up by 33% which is quite remarkable.

These growths can be attributed to the massive stride Microsoft made in different markets towards the end of last year.

Starting from its PC line to its gaming console and cloud service line. Its PC line – Surface, recorded an all-time high amount of shipment.

Over a 300million PCs were shipped, accounting for Microsoft’s first major growth in the field in the last 10 years. 

During the quarter in review, Microsoft launched two Surface products. They launched the Surface Pro X and the Surface Laptop Go. And, they successfully pushed the PC line’s quarterly earnings up 3%.

But, more significantly, Surface has become a $2billion business. 

Interestingly, Microsoft is opening sales for the Surface Pro 7 plus update. The device will be exclusive to businesses and schools. The perks of the new device include; a heavy-duty battery, and Intel’s 11th generation processor among other things. 

The pandemic played a major role (again)

While it might be tiring of recounting the tale of how the pandemic helped to provoke demand for certain products and services, and in turn, contributed to some tech companies’ increase in revenue, it seemed to have played a major role here. 

More individuals had to work from home (Office 365 commercial, Microsoft Teams, Surface PCs). Learning might have hit a few bumps, but, it never came to a halt.

Hence, students had to devise new means to learn at home (Office 365 consumer).

Many folks who needed to socialize whilst maintaining some distance resorted to social networking (LinkedIn).

But, after chatting continually for hours you could grow weary of it. So, folks had to throw something into the mix.

And, next-gen gaming was the next perfect thing (Xbox series S and X). I guess by now you can see the picture. 

Microsoft had a fist full of services poised to meet what became the immediate need of many consumers during the pandemic.

And, as a result, they cashed out big time.  

Microsoft’s Windows revenue –excluding its pro license – grew by 24%. However, its total revenue (pro inclusive) only grew by 1%. This outcome could be linked to the previous Windows 7 upgrade schedule for businesses. 

Microsoft Xbox Series X and S performs impressively in the market

Xbox Series S and X

It’s been barely three months since the Xbox Series X and S hit the market. However, both consoles have driven hardware revenue 86% upward.

In comparison with Q4 2019, revenue from Xbox content and services has gone up 40%.

Plus, as more users try out Xbox Game Pass and Xcloud, total gaming revenue has reached $5 billion.

This record shatters Microsoft’s previous quarterly gaming revenue records. 

Microsoft expects to continue receiving high demands for the consoles.

However, they will only be available in small units next quarter. Microsoft CFO Amy Hood revealed this during an earnings call with investors.

Other new records

Microsoft 365 consumer version gets more subscribers

On Microsoft’s office 365 wing, new records have also been set. Subscribers on the consumer version of the program have reached 47.5million.

This shows a 28 percent leap compared to Q4 2019 data. On the other hand, the commercial version has also grown by 21%. 

Iyanuoluwa Agoi is a writer at Techuncode. A non-conventional writer and an out-of-the-box thinker who loves humour. Iyanu believes humour has the power to create high recall and engagement for all content forms. He'd never pass on the chance to throw in a little sarcasm on any piece of writing. Except, of course, this one. He was told that it is meant to be official. But, as you can see, he's already failing at making it so. Iyanu is an avid lover of good music; the James Arthur or JP Saxe kind. He listens to them in his spare time and also loves to watch stand up comedy.

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