Microsoft Q1 2020 earnings: Revenue up 14% on Office 365 and Azure growth

Today, Microsoft posted its quarterly earnings report, this time for the first quarter of fiscal year 2020. Once again, the company posted strong growth with $33.1 billion in revenue, a 14% (15% in constant currency) increase over the first quarter of fiscal year 2019. That number consists of $11.1 billion in Productivity and Business Processes for 13% (15% CC) growth in that area, $10.8 billion in Intelligent Cloud for 27% (29% CC) growth, and $11.1 billion in More Personal Computing for 4% (5% CC) growth.

In the Productivity and Business Processes department, Office 365 Commercial monthly active users is now over 200 million with 21% growth, and consumer subscribers is now at 35.6 million. Office Commercial products and cloud services grew by 13% (15% CC), including Office 365 Commercial growth of 25% (28% CC), and a decline in Office Commercial products by 17% (15% CC). Office Consumer products and cloud services revenue grew by 5% (6% CC).

LinkedIn saw 25% (26% CC) growth, with a 22% growth in sessions. Of course, Microsoft isn't saying just how much that revenue is. Dynamics products and cloud services also grew by 14% (16% CC), powered by a 41% (44% CC) increase in Dynamics 365.

Over in the Intelligent Cloud department, server products and cloud services saw an increase of 30% (33% CC) year-over-year, and that's primarily powered by 59% (63% CC) growth in Azure. Server products also saw 12% (14% CC) growth, mainly because of the end of support of Windows Server 2008 and SQL Server 2008. Enterprise Mobility also grew to over 120 million seats, a 36% increase YoY.

Finally, More Personal Computing saw 9% growth in Windows OEM revenue, and that can be attributed to a 19% growth in Windows OEM Pro revenue, thanks to the upcoming end of support for Windows 7. Non-Pro revenue declined by 7%. Windows Commercial products and cloud services are up 26% (29% CC), thanks to Microsoft 365.

Surface revenue is down by 4% (2% CC). Microsoft says that this is due to the "timing of product lifecycle transitions", even though its new Surface products were announced on exactly the same day that they were last year. Gaming is down as well, with a 7% (6% CC) decline in revenue. Xbox content and service is "relatively unchanged", thanks to Minecraft and subscriptions that made up for a "high prior year" because of a third-party title (Fortnite). Finally, search advertising revenue, excluding traffic acquisition costs, grew by 11% (13% CC).

Report a problem with article
1571863375_exynos-990
Next Article

Samsung announces Exynos 990 with support for 120Hz refresh rate and more

1571860579_5a-remaster.jpg.adapt.crop16x9.1455w
Previous Article

Command & Conquer Remastered gameplay teaser shared 

21 Comments - Add comment

Advertisement