Microsoft’s Q3 reports earning higher than forecast; Teams nearly doubled its active users
As the people started working from home, due to pandemic, the demand for Microsoft’s cloud service rose, which increased the company’s revenue in its third quarter higher than the expectations, as per the company in its earnings call on Tuesday.
Here are the key takeaways from the call:
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Microsoft’s revenue hit $41.7 billion, higher than expected.
The company’s revenue went up by 19% from the same period last year. It was predicted that it would rose to $41.03 billion, as per data from Refinitiv.
Revenue from its “Intelligence Cloud” front went up by 23%, reaching $15.1 billion.
The company’s CEO, Satya Nadella stated that “Digital technology will be the foundation for resilience and growth over the next decade.”
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LinkedIn is performing really well and they are spending 80% more hours on it.
Revenue for LinkedIn, a professional networking site, increased by 25%. The content being shared rose by 29% and the conversations were hiked by 43%.
As the advertising and employment markets are recovering from the pandemic, the revenue from the LinkedIn front is expected to grow. The site now has 756 million members.
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Teams have nearly doubled their active users, compared to last year.
The workplace chat platform ‘Teams’ has more than 145 million active users. As per Nadella, Teams was growing even in the countries where the offices were reopening.
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Xbox Series X and S consoles are in high demand, Minecraft is adding users
Revenue from its gaming segment went record high as it grew by 50%, CFO Amy Hood said.
As a result of releasing new consoles, the revenue of Xbox’s hardware went up 232%. And its content and service were up 34%, thanks to Minecraft’s popularity.
The sandbox video has more than 140 million active users, which is 30% more than last year.
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The U.S. military is using Microsoft’s AI services
Both public and private organization, such as Duolingo, AT&T, and the U.S. army has been Azure’s AI platform.
“We’ve seen dramatic advances in R&D by Open AI whose models are trained and hosted exclusively on Azure,” as per Nadella.
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Increase in Dividends and Share Buyback
Microsoft returned $10 billion to shareholders through dividends and share repurchases, which is 1% up compared to last year.
