Microsoft’s fiscal third quarter results were well ahead of expectations as the company’s commercial cloud revenue checked in at $17.7 billion, up 33% from a year ago. Azure revenue growth was 50%.

The company reported third quarter earnings of $15.5 billion, or $2.03 a share, on revenue of $41.7 billion, up 19% from a year ago. Non-GAAP earnings for the quarter checked in at $1.95 a share.

Wall Street was expecting Microsoft to report third quarter revenue of $41.03 billion with non-GAAP earnings of $1.78 a share.

CEO Satya Nadella said “digital adoption curves aren’t slowing down. They’re accelerating.”

What you need to know:

Indeed, Microsoft’s commercial cloud bookings growth appears to be accelerating year over year.  

msft-q3-2021-commercial-cloud.png

Microsoft’s portfolio is benefiting from a broad digital transformation push for corporations.

Among the key items:

  • Revenue in the productivity and business processes unit was $13.6 billion, up 155 from a year ago. Office products and cloud services revenue was up 14%.
  • Office Consumer products and cloud services revenue was up 5%. That growth rate was among the slowest in the company. Microsoft 365 Consumer subscribers checked in at 50.2 million.
  • LinkedIn revenue was up 25% and Dynamics product and cloud services revenue was up 26%.
  • Intelligent Cloud revenue was $15.1 billion with gains in Azure revenue, which was up 50%.
  • Azure revenue growth was in line with the fiscal second quarter pace. 
  • More Personal Computing revenue was $13 billion, up 19% from a year ago. Surface revenue was up 12% with Xbox content and services revenue up 34%.
  • Surface revenue was $1.5 billion, up from $1.34 billion a year ago and down from $2.04 billion in the fiscal second quarter. The best Surface? See which Microsoft Surface PC is right for you

Add it up and Microsoft delivered a strong quarter, but it’s clear that consumer Office sales are lagging. Microsoft is prepping plans to appeal to more prosumers and consumers. Where’s Microsoft going next in the ‘prosumer’ space?

msft-q3-2021-by-product.png



Source link