Microsoft announced high quarterly results on Tuesday, owing to robust demand for its cloud computing services.
In the first three months of this year, the IT giant reported a profit of $16.7 billion on revenue of $49.4 billion, up 8% and 18%, respectively, over the same time last year.
Microsoft also reported profit and revenue for its fiscal third quarter that beat Wall Street expectations, also benefiting from demand for its cloud-based services.
“Going forward, digital technology will be the key input that powers the world’s economic output,” Satya Nadella, chairman and chief executive officer of Microsoft said in a statement.
“Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience, and do more with less.”
The Redmond-based software company reported $19 billion in revenue and a $8.3 billion profit in its fiscal third-quarter results report, with its Intelligent Cloud division — which includes Azure public cloud, SQL Server, and GitHub — accounting for $19.3 billion in revenue. The same division made a $6.4 billion profit during the same time a year ago.
“Continued customer commitment to our cloud platform and strong sales execution drove better than expected commercial bookings growth of 28% and Microsoft Cloud revenue of $23.4 billion, up 32% year over year,” said Amy Hood, executive vice president, and chief financial officer of Microsoft.
The epidemic has also hastened a trend toward using the internet for work, education, shopping, socializing, and entertainment, with Microsoft appearing to be well-positioned to profit from these lifestyle shifts even when people return to being out and about.
According to the latest quarter earnings report, Microsoft’s business and productivity sector, which includes its online suite of Office 365 software, saw sales rise by 34% thanks to money brought in by career-focused online social network LinkedIn.
Aside from the cloud services and LinkedIn, Microsoft’s Xbox video game division also saw a four percent increase in revenue for content and services in the most recent quarter as the firm strives to improve its cloud-based games subscription offering.
Microsoft is currently seeking regulatory permission for its $69 billion acquisition of Activision Blizzard, a video gaming giant. Microsoft’s acquisition of ailing Activision will make it the third-largest gaming firm by revenue, after Tencent and Sony, according to the company, signaling a huge shift in the expanding game industry.