Microsoft earnings: $37.2B revenue with big Surface and gaming growth

Today, Microsoft announced its earnings for the first quarter of its 2021 fiscal year. Overall revenue grew by 12% (12% in constant currency) over the same quarter last year for a total of $37.2 billion. That"s broken up into Productivity and Business Processes with $12.3B revenue and 11% (11% CC) growth), Intelligent Cloud with $13B revenue and 20% (19% CC) growth, and More Personal Computing with $11.8B revenue and 6% (6% CC) growth.

In the Productivity and Business Processes department, it was led by 9% increase in Office Commercial products and cloud services, including 21% (20% CC) growth in Office 365 Commercial. The other piece of products and cloud services, the products, declined 30% as more businesses move to the cloud.

For consumers, Office products and cloud services revenue grew by 13%, and Microsoft 365 Consumer subscribers are now at 45.3 million, a 27% increase. LinkedIn revenue grew by 16%, and sessions grew by 31%. For Dynamics, products and cloud services revenue grew by 19% (18% CC), driven by Dynamics 365 revenue, which grew by 38% (37% CC).

As usual, Azure drove the growth in the Intelligent Cloud section. All Server products and cloud services grew by 22% (21% CC), and that includes a 48% (47% CC) growth in Azure. Server products actually declined 1%.

For More Personal Computing, Windows OEM revenue actually declined by 5%, but that actually includes 31% growth in non-Pro revenue, so there was also a 22% decline in Pro revenue. Windows Commercial products and cloud services grew 13% (12% CC).

Surface revenue saw a big boost, with a 37% (36% CC) increase. For this and the increase in Windows non-Pro revenue, Microsoft attributes increased PC demand. Gaming revenue increased by 22% (21% CC), including a 30% increase in Xbox content and services. Finally, search advertising revenue, excluding traffic acquisition costs, was down 10% (11% CC).

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