Microsoft (MSFT) Q3 profit jumps 22%, beats estimates

Microsoft (MSFT) Q3 profit jumps 22%, beats estimates

Microsoft (MSFT) Q3 profit jumps 22%, beats estimates

The numbers don't lie: it's reporting revenue of $35 billion for the quarter, 15 percent more than past year, and net income of $10.8 billion (up 22 percent). Net income of $1.40 per share beat Wall Street expectations of $1.27 a share.

And even though Microsoft spent $3.9 billion in the quarter on capital expenditures, money doled out largely to build massive data centers for its cloud services, the company said it delayed spending related to supply-chain constraints.

"We've seen two years' worth of digital transformation in two months", said CEO Satya Nadella in a written statement Wednesday.

In the third quarter of fiscal year 2020, COVID-19 had minimal net impact on the total company revenue.

The company noted in its news release that the financial effects of COVID-19 may not be fully felt until future quarters.

Revenue for the quarter was $35 billion, up 15% from a year earlier and ahead of consensus predictions of around $33.6 billion.

According to a CNBC report, takings from its server products and cloud services rose by roughly a quarter, while Azure grew by a whopping 59 percent. Revenues from Official Commercial products grew 13%, with Office 365 Commercial seats growing by 20% to almost 258 million.

Commercial Cloud gross margin percentage increased 4 points from a year ago to 67%, Microsoft CFO Amy Hood said on the call. The software giant also revealed that the number of daily active users for Teams increased by 110 per cent in the last four months.

"Despite the slowed growth, (Azure) operates at approximately 10 times the scale of Google (by annual revenues) and has seen better enterprise adoption so far", said Daniel Elman, an analyst at Nucleus Research.

Xbox content and services revenue increased 2%. Windows OEM Pro revenue grew 5%, while non-Pro revenue declined 10%. The main drivers will continue to be Microsoft's Azure cloud computing platform, which competes with Amazon.com's Amazon Web Services and its online business software.

These were the details of the news Microsoft revenue boost as home workers use Teams for this day.

Microsoft returned $9.9 billion to shareholders in the form of share repurchases and dividends during the quarter.

In the Intelligent Cloud division, sales increased to $12.3 billion, compared with an average projection for $11.7 billion.

And finally, operating cash flow at the company was $17.5 billion in the quarter.

Microsoft, which has shifted its focus in recent years from consumer to business services, said it saw gains in its Office commercial and cloud revenues of 13 percent. Eastern Daylight Time yesterday, Microsoft stock was up, closing at $177.43, up from $169.81 on April 28, 2020.

Related news



[an error occurred while processing the directive]