Microsoft releases fiscal 2021 Q1 quarterly revenue of $37.2 billion, exceeding analyst expectations

Microsoft recently announced its 2021 fiscal year Q1 quarterly financial report. The financial report deadline is September 30, 2020. The financial report shows that Microsoft’s revenue for the quarter reached 37.2 billion US dollars.

The reason why revenue exceeded analysts’ expectations was the strong growth of Microsoft 365 and Microsoft Azure cloud computing business, which allowed Microsoft’s revenue to grow rapidly.

Microsoft CEO Nadella said that we are innovating in the entire modern system to help customers shorten the time to value and reduce costs.

Microsoft Chief Financial Officer Amy Hood said that demand for cloud products will bring a strong start to the first quarter of the fiscal year, and we will continue to invest to drive long-term growth.

Most of Microsoft’s other businesses have grown in the epidemic because many consumers and companies need to rely on Microsoft’s cloud services for home telecommuting.

However, Microsoft’s Bing search business has been greatly and negatively affected by the epidemic, because the number of corporate customers advertising through Bing search has significantly decreased.

This has led to a serious decline in the revenue of the Bing search, which relies on advertising. Since the epidemic has not been alleviated, the impact on Bing will not be alleviated in a short time. In fact, the performance of Bing’s search business in recent quarters has been relatively poor, especially in the US market.

The Windows business performed differently this quarter, with Windows OEM revenue falling 5% and Windows Pro license sales falling 22%.

At the same time, Windows commercial products and cloud services also achieved a 13% increase. In addition, lower advertising expenditures in the Windows division also led to significant revenue growth.

The hardware business is mainly the Microsoft Surface series of laptops. Of course, it is not surprising that this part of the business has seen substantial growth during the epidemic.

Because of the demand for the home office, the sales volume of notebook computers and other products has increased significantly. Not only Microsoft but also equipment sales of other manufacturers have also achieved rapid growth.

In this quarter, Microsoft’s hardware business grew by 37%. Of course, Microsoft’s early launch of new Microsoft Surface devices may also be the reason for the growth.

The cloud computing business is Microsoft’s key business. Of course, the benefits of continuous investment are also considerable. Microsoft’s cloud computing business has maintained rapid growth for many years.

During the epidemic, more companies chose to use Microsoft’s cloud computing services, which allowed Microsoft’s cloud computing service revenue to grow by more than 48% this quarter.

Specifically, server product and cloud service revenue increased by 22%, and enterprise mobility management service installations surged by 27%, and are currently deployed on 152 million devices.