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Microsoft Corporation released a report on financial results for the third quarter of fiscal year 2020. Despite the global coronavirus pandemic, this quarter turned out to be very good financially for the company. It is observed that the COVID-19 pandemic had a minimal impact on the company’s total revenue.
In the reporting period, Microsoft was able to receive a total revenue of $ 35 billion, which is 15% more than the same period last year. At the same time, net profit grew 22%, reaching $ 10.8 billion.
The outbreak of coronavirus infection still had a definitive effect on the company’s business. So, in the last weeks of the quarter (at the end of March), “a slowdown in transactional licenses began to be registered, especially in small and medium-sized companies, and a reduction in advertising costs on LinkedIn.” At the same time, due to the increased demand for computers, the Windows segment showed good results. At the same time, regarding the transfer of many workers to remote work, notable improvements were observed in the Office and cloud services segments. Revenue from commercial Office products and cloud services increased by 13%, consumer versions by 15%. The number of Office 365 subscribers reached 39.6 million. Microsoft Teams service usage reached the level of 75 million daily active users, an increase during the month of 70%.
Windows OEM Pro revenue increased 5%, thanks to “increased demand for remote support and training.” However, in part, this increase in demand was offset by supply problems to China. Consumer income decreased by 10%. Revenue from the Microsoft Surface segment increased just 1% this quarter, likely because the company did not launch any new Surface products during the last quarter.
Despite the fact that in a pandemic, users are forced to stay home and search for entertainment, Microsoft’s total revenue from the gaming business decreased by 1%, while revenue from the distribution of content and services for Xbox increased only 2%. At the same time, the company already has more than 10 million Xbox Game Pass subscribers, and the number of monthly active Xbox Live users is approximately 90 million.
Revenue from server products and cloud services grew 30% to $ 12.3 billion. Productivity and business processes (including Office, LinkedIn, and Dynamics) generated revenue of $ 11.7 billion, while more personal computing (includes Windows, Surface, and Xbox products): $ 11 billion
Source: The Verge
