Riding once again on its growing Cloud business in the pandemic times, Microsoft reported its fiscal Q1 results, generating $37.2 billion in revenue (up 12 percent as compared to the same period last year) and $13.9 billion in net income (that increased 30 percent).
Stocks went up on Tuesday as the revenue in Intelligent Cloud reached $13 billion and increased 20 percent. Azure Cloud business was up 48 percent.
The revenue in Productivity and Business Processes was $12.3 billion and increased 11 percent, Microsoft said in a statement.
“The next decade of economic performance for every business will be defined by the speed of their digital transformation,” said CEO Satya Nadella.
“We are innovating across our full modern tech stack to help our customers in every industry improve time to value, increase agility, and reduce costs,” he added.
The Microsoft Office Commercial products and cloud services revenue increased 9 percent, driven by Office 365 Commercial revenue growth of 21 percent.
The Office Consumer products and cloud services revenue increased 13 percent and Microsoft 365 Consumer subscribers increased to 45.3 million.
“Demand for our cloud offerings drove a strong start to the fiscal year with our commercial cloud revenue-generating $15.2 billion, up 31 percent year over year,” said CFO Amy Hood.
“We continue to invest against the significant opportunity ahead of us to drive long-term growth.”
While LinkedIn revenue increased 16 percent, Microsoft Dynamics products and cloud services revenue increased by 19 percent.
The revenue in the ‘More Personal Computing’ segment was $11.8 billion and increased 6 percent.
“Xbox content and services revenue increased 30 percent while Surface laptop revenue increased 37 percent,” Microsoft said.
Search advertising revenue excluding traffic acquisition costs decreased 10 percent.
Microsoft returned $9.5 billion to shareholders in the form of share repurchases and dividends in the first quarter of the fiscal year 2021, an increase of 21 percent compared to the first quarter of the fiscal year 2020.