Microsoft beats FY21 Q3 revenue expectations on back of strong cloud and PC sales

Another blinding quarter for Microsoft as they report on their 2021 Q3 Fiscal.

Revenue: $41.7 billion vs $41.05 billion expected

Earnings per share: $2.03 vs $1.78 expected

The biggest winners as above were its Azure Cloud business (Intelligent Cloud) and strong revenue off the back of strong PC sales.

Azure leads the Growth

Unsurprisingly, Microsoft’s biggest growth, and the areas that has pushed its market capitalisation needle to almost $2 trillion, is its Azure cloud division. For the last quarter, Microsoft saw $15.12 billion in revenue from the segment, a 23% year-over-year increase. Azure growth is up 50% YoY.

Intelligent Cloud: $15.12b vs $14.9b expected

Productivity and Business Process: $13.6b vs $13.2b expected. Increase of 15%

More Personal Computing: $13.04 billion versus $12.6 billion expected

Over a year into the COVID-19 pandemic, the digital adoption curves aren’t slowing down, they’re accelerating, and it’s just the beginning,” said Microsoft CEO Satya Nadella.We are building the cloud for the next decade, expanding our addressable market and innovating across every layer of the tech stack to help our customers be resilient and transform“.

The other stars of the show

In addition to Azure, Microsoft saw:

  • 19% growth in Personal Computing growth of more than 10% year on year growth of Windows 10 revenue.
  • 35% increase in Xbox and Gaming Revenue
  • Microsoft 365 Consumer subscribers increased to 50.2 million
  • LinkedIn revenue increased 25%
  • Dynamics products and cloud services revenue increased 26% driven by Dynamics 365 revenue growth of 45%
  • Surface revenue increased 12% (up by $1.5 billion). Surface continues to grow at a steady and modest pace despite chip shortages and increased competition.

And Teams?

Well of course this is all part of Offixe 365 but… Some great numbers here too.. Microsoft seem to have consistent teams Daily active usage of 145million daily active users… 100% growth on this time last year as nicely announced by Jeff Teper

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