Microsoft Posts Revenues of $46.2 Billion in Q2 2021
- Paul Thurrott
- Jul 27, 2021
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Microsoft has recorded another monster quarter with a net income of $16.5 billion on revenues of $46.2 billion for the quarter ending June 30. The firm also revealed that its total fiscal year 2021 net income was $61.3 billion on revenues of $168.1 billion.
“We are innovating across the technology stack to help organizations drive new levels of tech intensity across their business,” Microsoft chairman and CEO Satya Nadella said of the quarter. “Our results show that when we execute well and meet customers’ needs in differentiated ways in large and growing markets, we generate growth, as we’ve seen in our commercial cloud – and in new franchises we’ve built, including gaming, security, and LinkedIn, all of which surpassed $10 billion in annual revenue over the past three years.”
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Intelligent Cloud was Microsoft’s biggest business in the quarter with revenues of $17.4 billion, a year-over-year (YOY) increase of 30 percent that the firm credits largely to Azure. Revenues from Azure grew 51 percent YOY, while Server revenue was up 16 percent. And the Enterprise Mobility business grew its installed base by 29 percent to over 190 million seats.
Productivity and Business Processes was second with $14.7 billion in revenues, a YOY gain of 25 percent. Office commercial revenues were up 20 percent, while Office consumer revenues grew 18 percent. There are now over 51.9 million Microsoft 365 consumer subscribers.
More Personal Computing brought up the rear with $14.1 billion in revenues, a YOY improvement of 9 percent. Windows commercial revenues were up 20 percent, but revenue from PC makers was down 30 percent, Microsoft says. Gaming revenue was up 4 percent overall, but Xbox content and services revenue decreased 4 percent. And Surface revenue nosedived a troubling 20 percent, with Microsoft blaming supply chain issues and not the wrong mix of products.
I’ll be writing a special edition of Short Takes tomorrow after I go through the post-earnings conference call.