Microsoft’s financial report from the quarter ending March 2021 – 44% increase in net profit
Satya Nadella Nadella), CEO of Microsoft, says about Microsoft’s recent performance : “After more than a year since the [corona] epidemic, the digital adoption curves have not declined, but accelerated, and this is just the beginning of the path. We have built the cloud [technology] for the next decade, extending our target market and innovation across technology layers to help our customers with flexibility and [digital] transformation.”
Amy Hood, Microsoft’s executive vice president and chief financial officer, also emphasized the company’s positive performance and added: “Microsoft Cloud with its end-to-end solutions and providing significant value to customers, It brought in $17.7 billion in revenue, a 33% year-over-year increase.”
Microsoft divides its broad business into three main segments: business processes and productivity, intelligent cloud and more personal computing, which will be mentioned in detail about the performance of each segment.
Business processes and Productivity
Income from business processes and Productivity in the quarter ended March of this year was 13.6 billion dollars, which has registered a 15% increase compared to the previous financial period. According to Microsoft’s report, the revenue from commercial office products and cloud services of the office suite has grown by 14%, most of which, like in recent quarters, has been realized following a 22% increase in the revenue of commercial Office 365.
Microsoft’s income from non-commercial or consumer office products and related cloud services has also experienced a 5% increase. According to published statistics, the number of Microsoft 365 Consumer service subscribers has reached 50.2 million people, which is one of the main growth factors of this sector. In addition, Microsoft’s income has not only increased by 25% from LinkedIn, but also increased by 26% in Dynamics products and related cloud services, which is mainly due to Dynamics 365 and 45% growth in this sector Searched Also, Microsoft Teams should not be forgotten, the number of daily active users has reached about 145 million people.
In the past quarter, Microsoft’s revenue in the smart cloud segment, including server products, Azure and GitHub, recorded $15.1 billion, compared to the previous financial period of 23 has experienced a percentage increase. Accordingly, revenue from server products and cloud services grew by 26%, thanks to a 50% increase in Azure revenue.
More personal computing
This Windows division includes the Bing search engine, Xbox and Surface computers, and in the most recent quarter, provided about 31% of Microsoft’s total revenue of $41.7 billion. Is. According to the published report, the income from more personal computing was 13 billion dollars, which indicates an increase of 19% compared to the previous financial period. The revenue of commercial Windows products and related cloud services has grown by 10%. Also, the income from the sale of windows provided to OEM companies has increased by 10% compared to the same period last year. In this way, we can conclude that despite the lack of chips at the global level, the growth rate of the personal computer market has not slowed down, and Microsoft has once again taken advantage of this advantage.
In fact, the increase in revenue in the Windows division is one of the notable items in Microsoft’s financial report, and it well reflects the increase in demand for laptops and personal computers due to the global epidemic of Corona. According to the CEO of the company, there are currently 1.3 billion active devices based on Windows 10 in the world, and it is expected that the American company will reveal the details of some future changes in this operating system during the next month in order to “visually and widely rejuvenate Windows”. The market offers.
Surface segments and search-based advertising (not including traffic buying costs) also experienced revenue growth of 12% and 17%, respectively. At the beginning of this month, Microsoft has unveiled the latest Surface model called Surface Laptop 4 and its accessories. It also introduced Surface Pro 7 Plus last season for businesses and schools. Surface Pro is the most popular device among Surface products and its latest models have a bigger battery, 11th generation Intel processors, replaceable SSD memory and the ability to connect to They use the LTE network.
Microsoft in the hardware and Xbox games once again achieved revenue growth, increasing revenue from hardware sales by 232%. The past season is the second quarter in which the X and S series consoles are sold, and the successful sale of these two products has been one of the most important factors in increasing Microsoft’s income in this sector.
Income from content and services. Xbox has recorded a 34% increase compared to the same quarter last year. In fact, computer games have become the main pastime for many people during 2020 and this trend is expected to continue in 2021.
In the recent quarter, Microsoft has returned 10 billion dollars to shareholders in the form of share repurchase rights and profit distribution, which shows a one percent increase compared to the third quarter of the fiscal year 2020.