Microsoft Reports $37.2 Billion Revenue Despite the Pandemic
Microsoft has published its first-quarter results for its 2021 financial year, reporting a significant boost in revenue as well as profits despite the economic downturn. The company reported a revenue of $37.2 billion, which was a 12% increase compared to the same period last year. Net income also went up by 30%.
Even though the pandemic has caused people to work from home and connect to others through video conferencing, Microsoft appears to be benefiting from the shift.
The company’s cloud services contributed the most towards the growth in revenue due to the pandemic. Revenue for both Office commercial and Office 365 commercial went up by 21%. Server products and cloud services showed a 22% increase while Azure’s revenue grew 48%.
The total subscriber count for Microsoft Office 365 has reached 45.3 million, which is a jump of 27 percent year-over-year. This is thanks to Microsoft’s renewed focus on consumers for Microsoft Teams and Office 365.
Surface revenue also contributed significantly. The laptop division generated a total of $1.5 billion, which was a jump of 37% compared to last year even though we have not seen any new Surface devices this quarter.
As for gaming, Xbox content and services also managed to increase revenue by 30% since a lot more people have turned to cloud gaming services and Game Pass during the pandemic. It was clear that there was a significant increase in demand for Microsoft’s gaming services.
This figure is expected to grow even further in the next period as the launch of Xbox Series X and S is drawing near and the company says that it already has more than 15 million subscribers for the Xbox Game Pass.