Microsoft's cloud growth is the basis for strong financial results
Microsoft Corp. published its results for the quarter ending September 20, 2020.
With revenue of no less than $ 37.2 billion (up 12% from the same quarter a year earlier), operating income of $ 15.0 billion (up 25%), and earnings per share of $ 1.82 (up 32%). Net income rose by 30% compared to the same quarter last year to $ 13.9 billion. All results exceeded analysts’ expectations.
Despite COVID-19, revenue from Dynamics ERP and CRM products and cloud services rose by 19%, primarily due to the growth in Dynamics 365 cloud revenue, which surged by a whopping 38%! Meanwhile, revenue for the broader Productivity and Business Processes segment totaled 12.3 billion and increased by 11%. In the previous quarter, total Dynamics revenue rose by 13%, while Dynamics 365 revenue grew by 38%.
This rapid and sustained growth in business applications confirms the market's confidence in Microsoft Dynamics 365 solutions, Microsoft's intelligent cloud platform, and Microsoft's vision.
“Demand for our cloud offerings drove a strong start to the fiscal year, with our commercial cloud revenue generating 15.2 billion in revenue for the first quarter, a 31% increase compared to the same period a year ago.”, according to Amy Hood, executive vice president and CFO of Microsoft. “We will continue to invest in the tremendous opportunities ahead of us to drive long-term growth.”
These strong financial results, combined with positive prospects for the coming years, enable Microsoft to continue its investments in research and development unabated. This allows the company to accelerate its mission to ‘empower every person and every organization on the planet to achieve more’.
“The next decade of economic performance for every industry and company will be determined by the speed of their digital transformation.”, according to Satya Nadella, the CEO of Microsoft.
For Microsoft's implementation partners and their current and potential customers, these sustained strong results confirm the confidence they have in a stable and innovative future.