American technology company Microsoft Corporation has managed to beat analyst projections. It has become obvious from the earnings that it reports for its second quarter for the year 2020. The company said revenue grew by 14% compared to the same quarter a year earlier, landing at .9 billion.Chief Executive Officer Satya Nadella stated:“We are innovating across every layer of our differentiated technology stack and leading in key secular areas that are critical to our customers’ success.”The company’s operating income was .9 billion which demonstrates an increase by 35%. Net income was .6 billion. It was growing by 38% GAAP and 36% non-GAAP. Diluted earnings per share was .51 and increased 40% GAAP and 37% non-GAAP.Microsoft returned .5 billion to shareholders in the form of
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American technology company Microsoft Corporation has managed to beat analyst projections. It has become obvious from the earnings that it reports for its second quarter for the year 2020. The company said revenue grew by 14% compared to the same quarter a year earlier, landing at $36.9 billion.
Chief Executive Officer Satya Nadella stated:
“We are innovating across every layer of our differentiated technology stack and leading in key secular areas that are critical to our customers’ success.”
The company’s operating income was $13.9 billion which demonstrates an increase by 35%. Net income was $11.6 billion. It was growing by 38% GAAP and 36% non-GAAP. Diluted earnings per share was $1.51 and increased 40% GAAP and 37% non-GAAP.
Microsoft returned $8.5 billion to shareholders in the form of share repurchases and dividends in the period covered in the report.
Amy Hood, who is the executive vice president and chief financial officer of Microsoft noted:
“Strong execution from our sales teams and partners drove Commercial Cloud revenue to $12.5 billion, up 39% year over year.”
Revenue in Productivity and Business Processes was $11.8 billion and increased by 17%. Among that, Office commercial products and cloud services revenue jumped 16% (up 18% in constant currency) driven by Office 365 commercial revenue growth of 27% (up 30% in constant currency).
Office Consumer products and cloud services revenue increased by 19% (up 20% in constant currency). The number Office 365 Consumer subscribers was growing and it reached 37.2 million.
Linkedin Revenue Jumps 24%
LinkedIn revenue jumped 24% (up 26% in constant currency). The revenue of the dynamics products and cloud services also increased, in this case by 12% (up 15% in constant currency). It was driven by Dynamics 365 revenue growth of 42% (up 45% in constant currency). Few days ago, LinkedIn said that it is gaining three new features. They are aimed at the facilitation of community engagement and the construction of closer relationships with followers.
Intelligent Cloud Revenue Driven by Azure
Revenue in Intelligent Cloud was $11.9 billion. The increase was 27% (up 28% in constant currency). Server products and cloud services revenue also demonstrated an increase of 30% (up 32% in constant currency) driven by Azure revenue growth of 62% (up 64% in constant currency). Enterprise Services revenue expanded 6% (up 7% in constant currency). Azure benefits from a secular shift to cloud that has also boosted other companies, including Alibaba, Google, IBM and Oracle.
Revenue regarding more personal computing was $13.2 billion and grew by 2% (up 3% in constant currency). Windows OEM revenue went up 18% (up 18% in constant currency) while Windows Commercial products and cloud services revenue increased by 25% (up 27% in constant currency. Surface revenue increased 6% (up 8% in constant currency).
Big Plans for Xbox in 2020
However, it’s worth mentioning that Xbox content and services revenue fell 11% (down 9% in constant currency). But from the company it’s said that in 2020, it will launch what will be the fastest Xbox model with improved graphics and processing speed.
Also, last year the company decided to shut down its Wunderlist App come 2020. Sources then said that Microsoft preferred its To Do as it offers a better end-user experience. Moreover, it is said to be able to compete favorably with other personal organization apps that are currently in vogue and trending in app stores.
Microsoft stock is on the rise. Shares of Microsoft jumped over 4% to $175$ in after-hours trading following the release of the company’s earnings. Before closing its price was $168. Just for you to compare: 12 ago, the stock was trading for $160.
Experienced creative professional focusing on financial and political analysis, editing daily newspapers and news sites, economical and political journalism, consulting, PR and Marketing. Teuta’s passion is to create new opportunities and bring people together.