Microsoft’s financial report from the quarter ending September 2021 – an income beyond the expectations of the company’s managers

News unit EMGblog.com : Company Microsoft on October 26 of this year (Aban 4, 1400) presented its report for the season ending September 2021 (corresponding to the first quarter of the fiscal year 2022 company) Published. According to this report, the revenue of the American company in the last quarter was 45.3 billion dollars, which has experienced a 22% growth compared to the same period last year. The company’s net profit (based on generally accepted accounting principles or GAAP) and operating profit also reached 20.5 and 20.2 billion dollars with annual growth of 48 and 27 percent, respectively. Also, according to accepted accounting principles, the diluted profit per share was reported as $2.71, which indicates a 49% increase compared to the same period last year.

According to news sources, the stock value Microsoft has increased by 39% in 2021, while the average growth of the S&P 500 index was 22% during this period. Interestingly, the financial results of Microsoft in the quarter of July to September of this year have exceeded the expectations of the managers of this company.

According to Microsoft CEO Satya Nadella, “Digital technology is a deflationary force in [today’s] inflationary economy. Small and large businesses can improve the productivity and cost-effectiveness of their products and services by creating tech intensity. [In this regard] Microsoft Cloud provides the end-to-end platforms and tools that organizations need to navigate the constant changes at this point in time.” The term technology intensity refers to the rate of adoption of new technologies and its integration capability, especially using cloud services, in the organization.

Amy Hood , Microsoft’s executive vice president and chief financial officer also said: “We have had a strong start to the new fiscal year relying on our cloud services, and with annual growth of more than 36%, we have earned $20.7 billion in revenue this quarter.”

Microsoft’s extensive activities include three main areas of Business Processes and Productivity, Intelligent Cloud and More Personal Computing, which we will review the performance of each section below.

Business Processes and Productivity

Revenue for the segment, which includes Dynamics products and related cloud services, LinkedIn and Office, grew 22% to $15.0 billion. Meanwhile, StreetAccount analysts predicted a revenue of around 14.67 billion dollars for this sector.

Revenue Microsoft’s Office suite of business and cloud services experienced 18 percent growth, while Office 365 business grew by about 23 percent. In the same way, the non-commercial or Consumer office and related cloud services also witnessed a 10% growth, so that the number of Microsoft 365 Consumer service subscribers has now reached 54.1 million people. It goes without saying that the company’s income from LinkedIn and Dynamics products increased by 42 and 31%, respectively, and the reason for the growth of LinkedIn’s income should be found in the 61% growth of Marketing Solutions. In addition, Microsoft attributed the increase in revenue of Dynamics products and related cloud services to Dynamics 365 growth of 48%. GitHub includes Windows servers, SQL Server, Visual Studio and System Center and has brought in $17.0 billion in revenue for the American company. This is more than the $16.51 billion estimated by StreetAccount analysts, representing a 31% year-over-year increase. Also, Microsoft announced a 35% growth in server products and attributed this increase mostly to the 50% annual growth of Azure and other cloud services of this company.

More personal computing

in The more personal computing area, which includes Windows, the Bing search engine, Xbox and Surface computers, Microsoft had $13.3 billion in revenue, a 12 percent increase over the previous period. According to Gartner Research Institute, the supply of personal computers grew by 1% in the third quarter of this year. In addition, sales of Windows to device manufacturers also increased by 10 percent, and according to Microsoft, supply restrictions have affected this part of the American company’s business. However, from Amy Hood’s point of view, Microsoft has been strong in selling commercial personal computers.

According to this report, the revenue from the sale of Windows provided to OEM companies and Windows commercial products and related cloud services with 10 and 12 respectively The percentage of annual growth has been accompanied. Microsoft has achieved 2% growth in Xbox content and its services. The search and news advertising segment (without taking into account the costs related to buying traffic) was not left out of this increase and experienced 40% growth, although Surface revenue faced a 17% decrease.

Last season, Microsoft not only unveiled new models of Surface computers, but also acquired security startups. CloudKnox and RiskIQ reported. Also, increasing the subscription fee of commercial Office 365 is also on the agenda of this company. In addition, Microsoft has paid more attention to this part of its business by employing Charlie Bell, the director of Amazon Cloud Services to work on cyber security and cooperation in security research and development.

In the last quarter, Microsoft returned a total of 10.9 billion dollars to shareholders through dividend distribution and share buyback, which indicates a 14% growth compared to the same quarter of the last financial year.