Technology

Microsoft delivers record results thanks to Xbox and Windows

Yesterday, Microsoft had an appointment with investors to take stock of the business situation, to discuss the results of its third quarter of the fiscal year. The truth is, this was a record quarter beating analysts’ expectations and reaching $ 41.7 billion in revenue. The great devices have been Xbox, Windows and the cloud.

Classics like Windows and Xbox Power Microsoft this quarter

Beyond revenue, the company’s net profit was over $ 15 billion, a significant increase from other quarters.

The reality is that the PC market is not slowing down despite a global chip shortage. And Microsoft is taking advantage. The Windows OEM zone increased its profits by 10%, underlining the strong demand for equipment. For its part, the profits of non-professional Windows OEMs increased by an incredible 44%. Only the OEM Pro area dropped its profits by 2%.

Source: Microsoft

These post-PC era champions must be surprised by the current growth. Yes, the pandemic has contributed to this growth thanks to the well-known teleworking, but we already know that Windows 10 has 1.3 billion devices. This is partly why we are seeing Microsoft’s efforts to recover Windows.

Surface continues to be a strong company

Speaking of PCs, Surface had already managed to hit $ 2 billion in revenue and this quarter it fell back to $ 1.5 billion. It may sound like a bad thing, but compared to the same time last year, it’s a 12% increase in a bad time for Surface.

Windows 10 has 1.3 billion devices

While the Surface Laptop 4 and new accessories launched this month, the Surface Pro 7+ for business arrived earlier this year. Of course, its potential customers are far less so that it is the most popular device.

Source: XDA Developers

Xbox shows 232% profit increase

We turn to games and we do it with a first data, the revenues of the Xbox area have increased by 232% despite the shortage of processors and thanks to the new consoles.

But it wasn’t just hardware revenue that rose, Xbox’s content and services revenue was also up $ 739 million (34%) from the same quarter last year. The momentum has been seen in third-party titles, Xbox Game Pass memberships, and first-party games. Gaming turned into entertainment in 2020 and the trend continued through 2021. Total gaming revenue grew by $ 1.2 billion (50%), after reaching $ 5 billion in the last quarter for the first time, mainly thanks to Xbox content, services and Xbox Hardware.

This time, Microsoft did not share data on Xbox Game Pass. In the previous quarter, the Redmond giant announced that there were 18 million subscribers and we expected to know if it had passed the 20 million mark.

Microsoft 365 and Azure, a pillar that continues to grow

We have moved from a more personal approach to a business approach. Desktop and enterprise cloud services revenue increased 14% this quarter. Along with an Office 365 business growth of 22%. Microsoft Teams usage has also grown to 145 million daily active users, and there are now nearly 300 million Office 365 users.

Teams reaches 145 million active users

Even beyond the commercial offering, things are working well for Office. Revenue from Office cloud services and consumer products grew 5% this quarter, driven by subscription revenue from Microsoft 365 Consumer and a huge 27% jump in subscribers to 50.2 million.

We ended up giving the Microsoft cloud a quick brushstroke where revenue is up 26%, and the entire “smart cloud” part of Microsoft’s business is up 23% thanks to the growth. Azure.

Intelligent Cloud, which includes Azure products and servers, reached $ 15.1 billion in revenue this quarter. So, we can summarize in three big areas that Microsoft is based on and which continue to work in an incredible way.

Productivity and business processes, intelligent cloud and more personal computers. Each of these areas has achieved a third of the company’s revenue demonstrating the great balance managed by Satya Nadella.

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