ET. Microsoft Q1 2021 earnings beat analyst expectations on continued cloud strength. Elsewhere, LinkedIn revenue has also grown by 16 percent year-over-year with 722 million users. The FactSet estimate was $10.42 billion. In the previous quarter Microsoft's Intelligent Cloud business segment, which includes Azure, was larger than any other segment for the first time in more than three years. Today Microsoft reported its third-quarter, fiscal 2020 quarter earnings, the period of time corresponding to Q1 2020 on the regular calendar. During an earnings call with investors, Microsoft CEO Satya Nadella said “PCs have become mission critical,” and that Microsoft is seeing double digit growth in monthly active devices for Windows 10. The company reported its highest-ever quarterly revenue of $38,033 million in the fourth quarter ended June 30, 2020, with an appreciable 12.8% YoY and 8.6% QoQ growth. “We expect very strong demand following the launch of our next-generation Xbox Series X and S consoles,” said Microsoft CFO Amy Hood during a call with investors. While the ongoing pandemic continues to force many to work remotely during an economic downturn, Microsoft is benefiting from the shift in the way people are now working, playing games more, and connecting to others through videoconferencing. We need to wait for more details regarding it. Azure's 48% revenue growth rate during the quarter is down from 59% during the same period in the prior year. Eleanor Dickinson ... it notably dropped by the 59 per cent growth seen in Q1 2020. Surface revenue has jumped by 37 percent this quarter to $1.5 billion. This Q1 2020 leaderboard reflects point values for cases that are: Submitted and assessed by the MSRC team between January 1, 2020 and March 31, 2020. Contributor. Q1 2020 ($1.35 billion) and Q2 2020 ($1.98 billion) followed the usual pattern, in that the former is the company’s worst quarter for Surface, while the latter is the best. Michael Wiggins De Oliveira. Microsoft continues to boost its revenue and profits during an economic downturn. Microsoft notes that Xbox Game Pass subscriptions and strength in third-party and first-party titles helped with revenue. The more personal computing bucket includes Surface, Xbox, and Windows, and Microsoft says gaming and Surface drove its revenue growth of 6 percent for this quarter. The technology … Azure revenue itself grew 48 percent. Q1 is typically the company’s worst corner for Surface, and Q1 2020 was no different; Q2 tends to be the best, and Q2 2020 also followed this pattern. Gartner and IDC earlier this month both pointed to the Windows 10 upgrade cycle when they reported increases in PC shipments in the quarter. 4.1. © 2021 CNBC LLC. Oct. 28, 2020 4:33 AM ET Microsoft Corporation (MSFT) 16 Comments 45 Likes. Microsoft scooped up revenue of $33.1 billion and net income of $10.7 billion during Q1 2020, a very respectable 14 percent year on year increase for revenue and a … Microsoft revealed it has 15 million Xbox Game Pass subscribers last month, but the company hasn’t provided any fresh numbers today. Azure drove the intelligent cloud revenue growth, and Office 365 and LinkedIn helped the productivity and business processes bucket. Note that each feature links to our public roadmap project where you can find more details about each item and see its status. That’s a big increase for a quarter that hasn’t seen any new Surface devices introduced. Microsoft (NASDAQ:MSFT) Q1 2021 Earnings Call Oct 27, 2020, 5:30 p.m. In 2020 overall, Microsoft expects double digit revenue and operating income growth. Q1 FY2020 results. Following the second Security Researcher Quarterly Leaderboard and the 2020 MSRC Most Valuable Security Researchers criteria we published in February 2020, we are excited to announce the 2020 First Quarter (Q1) Security Researcher Leaderboard, listing our top contributing researchers for the last quarter.. Last week we updated the Features Timeline to provide visibility to several of our key investments for this quarter. Our global health response team is acting to help protect our employees in accordance with global health authorities’ guidance. Earlier this month Jefferies analysts led by Brent Thill upgraded Microsoft stock to buy from the equivalent of a sell rating. Meanwhile, Microsoft's EPS was up 32% y/y in Q1 2021. The Intelligent Cloud segment, which houses Azure along with Windows Server, SQL Server, System Center, GitHub and consulting, contributed $10.85 billion in revenue. Windows OEM revenue has dropped 5 percent, and Microsoft blames lower commercial demand for the dip. Get this delivered to your inbox, and more info about our products and services. Microsoft today reported fiscal Q1 2020 earnings, including revenue of $33.1 billion, net income of $10.7 billion, and earnings per share of $1.38. All Rights Reserved. Microsoft (NASDAQ:MSFT) Q1 2021 Earnings Call Oct 27, 2020, 5:30 p.m. Follow @CNBCtech on Twitter for the latest tech industry news. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. Operating and Net Margins A number of consumers have turned to gaming and services like xCloud or Game Pass during the pandemic, and it’s clear there’s an increased demand for Microsoft’s gaming services. We want to hear from you. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. Microsoft last announced its earnings data on October 27th, 2020. Greetings, and … The Microsoft Security Response Center (MSRC) investigates all reports of security vulnerabilities affecting Microsoft products and services, and provides the information here as part of the ongoing effort to help you manage security risks and help keep your systems protected. Update, October 27th 6:10PM ET: Article updated with comments from Microsoft’s investor call. Microsoft Q1 2020 Revenue Credit: Tadas Sar via Unsplash. Microsoft reported a 9.5% increase in the number of Office 365 consumer subscribers, which is now at 35.6 million. Bleeding Edge - 24-Mar-2020. The company earned $37.15 billion during the quarter, compared to analysts' expectations of $35.67 billion. Microsoft posted the first quarter of its 2020 financial results today, reporting revenue of $33.1 billion and a net income of $10.7 billion. Microsoft only just introduced a new Surface Laptop Go device and updated Surface Pro X earlier this month, but those will count to next quarter’s revenue. Teams primarily competes with the similar service Slack, offering workspace chat and videoconferencing, file storage, and application integration. In total, the company reported $38 billion in revenue. Below is the complete blog post from Microsoft regarding the decision (not that the prices below are in USD): We messed up today and you were right to let us know. I'm most looking forward to: DBZ Kakarot - 17-Jan-2020. Microsoft posted the first quarter of its 2021 financial results today, reporting revenue of $37.2 billion and a net income of $13.9 billion. Net income of $13.9bn: Up a whopping 30 per cent from this time last year. Microsoft shares are up about 35% since the beginning of the year. Microsoft attributed the change to more agreements on Microsoft 365, a bundle that includes Windows 10, Office 365 productivity services and mobility and security tools. Microsoft stock was little changed on Wednesday after the company reported better-than-expected fiscal first quarter results and slightly lower-than-expected quarterly revenue guidance. Analysts at Evercore, which has the equivalent of a buy rating on Microsoft stock, said in a note distributed to clients on October 18 that they had been expecting 64% Azure growth in the fiscal first quarter. Microsoft last announced its earnings data on October 27th, 2020. This jump in usage hasn’t resulted in increased Windows OEM revenue during this quarter, though. "We see a large diversified business with excellent visibility that has a clear line of sight into double-digit rev growth for the foreseeable future," they wrote in a note to clients. It’s likely that students and families are driving this growth during the pandemic, turning to PCs to help support remote learning. More Personal Computing, which comprises Windows, Surface, search ads and gaming, came up with $11.13 billion in revenue. The biggest news here from a consumer point of view is that Microsoft 365 Consumer subscribers have also increased to 45.3 million. Microsoft cruises past expectations for fiscal Q1, revenue up 12% to $37.2B, profits up 30% by Taylor Soper on October 27, 2020 at 1:40 pm October 27, 2020 … Azure steers Microsoft to Q1 revenue of US$37B. Revenue increased 14% on an annualized basis in the first quarter of Microsoft's 2020 fiscal year, which ended on September 30, according to a statement.. Cloud services are the biggest boost to Microsoft’s revenues from the pandemic shift in behavior. The analysts pointed to Azure, the Office business and LinkedIn as growth opportunities. Surface continues to bring in $1 billion each quarter. I'm most looking forward to: DBZ Kakarot - 17-Jan-2020. Analysts polled by FactSet had been looking for $10.90 billion. I am happy to share a few highlights on some of the features for Q1. Microsoft’s Surface, Xbox, and cloud divisions have helped the company boost its revenue and profits for Q1 2021. Microsoft reported strong sales growth during its most recent quarter, but a weaker-than-expected guidance for the current quarter muted investor enthusiasm. Microsoft sinks despite earnings, revenue beat. The struggle is real! Commercial Windows revenue from device makers rose 19% ahead of the end of support for Windows 7, which comes in January 2020. A Division of NBCUniversal. Microsoft splits its various businesses into three buckets: productivity and business processes, intelligent cloud, and more personal computing. And now we’re seeing the results of that slowdown: gone are the quarters of 20%+ growth. Hood predicted $12.45 billion to $12.65 billion in the cost of goods sold in the fiscal second quarter; analysts polled by FactSet had expected an average of $13.37 billion. In Q1 2020, the company reported revenue of $33.1 billion in … Got a confidential news tip? Microsoft beat expectations on the top and bottom lines, but revenue guidance was lower than expected. Here's a snapshot of Microsoft's Q1 FY21, the three months to September 30: Total revenues of $37.2bn: Up 12 per cent year over year. Mark Vickery October 27, 2020. Analysts had expected that to happen. Microsoft (MSFT Quick Quote MSFT - Free Report) reported first-quarter fiscal 2021 non-GAAP earnings of $1.82 per share, which beat the Zacks … Microsoft provided the following segment guidance for Q1 2020 fiscal year: In Productivity and Business Processes, we expect revenue between $10.7 and $10.9 billion driven by double digit growth in Office commercial, Dynamics, and LinkedIn. ... PC shipments in third-quarter 2020 improved 3.6% year over year … Remote Working Wave to Drive Microsoft's (MSFT) Q1 Earnings. Office 365 commercial seat growth slowed to 21% on an annualized basis as Microsoft crossed 200 million Office 365 commercial monthly active users. Commercial revenue from services and device makers was more than Microsoft had expected, Hood said. Oct. 28, 2020 4:33 AM ET Microsoft Corporation (MSFT) 16 Comments 45 Likes. In the fiscal first quarter, though, Microsoft said Xbox content and services revenue was basically unchanged; that result has to do with impact from the game Fortnite in the same period one year earlier, when there was 36% growth, making for a difficult comparison. The company's Azure revenue growth declined to 59%. Xbox content and services revenue increased 2%, and gaming revenue as … In a surprise move, Microsoft has opted to backpedal on its original decision and will not increase Xbox Live Gold’s cost following significant backlash from gamers. I have an ever growing back-log, so I'm being conservative with the additions! In the fiscal first quarter, Microsoft said LinkedIn would move to Azure, and announced the acquisitions of cloud migration company Movere, data security company BlueTalon and retail advertising company PromoteIQ. Operating Income 4.3. Yair Tor Principal Program Manager, Azure Networking. Sign up for free newsletters and get more CNBC delivered to your inbox. (It still discloses gaming revenue in its quarterly financial filing with the SEC.) Microsoft's Productivity and Business Processes unit, which contains Office, LinkedIn and Dynamics, delivered $11.08 billion in revenue. ET. Both Office commercial and consumer are up, with Office 365 Commercial revenue growth up by 21 percent. Each quarterly leaderboard recognizes the security researchers who ranked at or above the 95 th percentile based on their total points. The Azure public cloud business delivered 59% revenue growth, which is down from the 64% growth one quarter earlier. Surface revenue was down four percent compared to Q1 2019. The consoles complement Microsoft’s xCloud game streaming service that launched last month, and the company’s ongoing efforts with Xbox Game Pass. Microsoft said last month that it would stop disclosing gaming revenue in its earnings releases, and would instead start disclosing revenue growth from Xbox content and services, as the company has bolstered its gaming services, with more coming soon. Today Microsoft reported its third-quarter, fiscal 2020 quarter earnings, the period of time corresponding to Q1 2020 on the regular calendar. REDMOND, Wash. — Feb. 26, 2020 — As Microsoft closely monitors the impact of the COVID-19 health emergency, our top priority remains the health and safety of our employees, customers, partners, and communities. Microsoft shares fell nearly 2% in after hours trading Tuesday night. Microsoft Q1 profit jumps 21%, tops estimates October 23, 2019 March 30, 2020 Microsoft Corporation ( NASDAQ: MSFT ) reported a 21% jump in earnings for the first quarter of fiscal 2020 as growths in Productivity and Business Processes, Intelligent Cloud, and More Personal Computing segments drove the top line higher. The company earned $37.15 billion during the quarter, compared to analysts' expectations of $35.67 billion. newsletter, Microsoft Surface Pro X (2020) review: ARM gets more muscle, Surface Laptop Go review: a case study in cost cutting, Xbox Series X preview: the next gen feels like a PC. Revenue is up 12 percent, and net income has increased by 30 percent. Microsoft posted the first quarter of its 2020 financial results today, reporting revenue of $33.1 billion and a net income of $10.7 billion. Azure's 48% revenue growth rate during the quarter is down from 59% during the same period in the prior year. Microsoft is now gearing up to launch its next-gen Xbox Series X and Series S consoles on November 10th. This demand should drive “supply constrained hardware revenue growth of approximately 40 percent” next quarter. Microsoft Q1 2020 Revenue Credit: Tadas Sar via Unsplash. Search revenue has decreased by 10 percent, though. Investors will watch how well Microsoft is continuing to weather the pandemic-induced economic slowdown when it reports earnings for Q1 FY 2021 on October 27 after the market close. 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