Microsoft revenue jumps 20% to $51.7 bn in Dec quarter

Microsoft reported revenue of $51.7 billion (+20 percent), operating income of $22.2 billion (+24 percent) and net income of $18.8 billion (+21 percent) for the quarter ended December 31, 2021.
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“As tech as a percentage of global GDP continues to increase, we are innovating and investing across diverse and growing markets, with a common underlying technology stack and an operating model that reinforces a common strategy, culture, and sense of purpose,” said Satya Nadella, chairman and chief executive officer of Microsoft.

Microsoft Cloud revenue rose 32 percent to $22.1 billion.

Revenue in Productivity and Business Processes was $15.9 billion and increased 19 percent, with the following business highlights:

Office Commercial products and cloud services revenue increased 14 percent driven by Office 365 Commercial revenue growth of 19 percent.

Office Consumer products and cloud services revenue increased 15 percent and Microsoft 365 Consumer subscribers grew to 56.4 million.

LinkedIn revenue increased 37 percent.

Dynamics products and cloud services revenue increased 29 percent driven by Dynamics 365 revenue growth of 45 percent.

Revenue in Intelligent Cloud was $18.3 billion and increased 26 percent, with the following business highlights:

Server products and cloud services revenue increased 29 percent driven by Azure and other cloud services revenue growth of 46 percent

Revenue in More Personal Computing was $17.5 billion and increased 15 percent, with the following business highlights:

Windows OEM revenue increased 25 percent

Windows Commercial products and cloud services revenue increased 13 percent.

Xbox content and services revenue increased 10 percent.

Search and news advertising revenue excluding traffic acquisition costs increased 32 percent

Surface revenue increased 8 percent

Microsoft forecast revenue for the current quarter broadly ahead of Wall Street targets, driven in part by its Intelligent Cloud unit.

Microsoft forecast Intelligent Cloud revenue of $18.75 billion-$19 billion for its fiscal third quarter, driven by strong growth in its Azure platform.

Microsoft delivered strong outlooks in other areas, too.

The More Computing unit expects revenue of $14.15 billion-$14.45 billion for the third quarter, and Productivity and Business Processes of $15.6 billion-$15.85 billion.

Full-year operating margins are forecast to be up slightly from the previous year.

Revenue from Microsoft’s biggest segment, which offers cloud services and includes Azure, its flagship cloud offering, rose 26 percent, while the business that houses its Office 365 services increased 19 percent in the quarter.

Microsoft said the Activision Blizzard deal would help boost Xbox content and services revenue. Growth has fallen sharply from a high in the fourth quarter of fiscal 2020 when Xbox content and services grew 65 percent. In the past quarter, revenue rose 10 percent, while in the year-ago quarter it rose 40 percent.

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