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Updated:05:55 PM EDT Oct 06


this is ggmania.com subsite Microsoft Q2 2020 earnings: Revenue up 14% - TechAmok

Microsoft Q2 2020 earnings: Revenue up 14% - [briefly]
05:24 PM EST - Jan,29 2020 - post a comment

Today, Microsoft announced its quarterly earnings, this time for its second quarter of its fiscal year 2020, or the fourth quarter of the calendar year 2019. Once again, the Redmond firm showed strong growth, with a 14% (15% in constant currency) increase in revenue year-over-year (YoY), for a total of $36.9 billion in revenue. That can be broken down to $11.8 billion in Productivity and Business Processes (17% growth or 19% CC), $11.9 billion in Intelligent Cloud (27% growth or 28% CC), and $13.2 billion in More Personal Computing (2% growth or 3% CC). Productivity and Business Processes growth was driven by Office 365 and LinkedIn. All Office Commercial products and services saw 16% growth (18% CC) in revenue. That's driven by a 27% (30% CC) growth in Office 365 Commercial revenue, and offset by an 11% (10% CC) decline in Office Commercial non-cloud products. Also, Office 365 Commercial seats grew by 21%. Office Consumer products and services revenue grew by 19% (20% CC), and Microsoft attributes that to recurring subscriptions, the Japanese market, and that last year was low. In total, there are now 37.2 Office 365 Consumer subscribers. LinkedIn revenue grew by 24% (26% CC), while sessions grew by 25%. Dynamics products and services grew by 12% (15% CC), and Dynamics 365 revenue grew by 42% (45% CC). Of course, Microsoft doesn't tell us how much money is actually being generated by any of these categories; it's just not transparent like that. On to the Intelligent Cloud, which is this weird bucket of cloud services that don't fit into Productivity and Business Processes, and some non-cloud products, despite the name. Server products and cloud services grew by 30% (32% CC), driven by 62% (64% CC) growth in Azure revenue. Server products is actually up by 10% (12% CC), thanks to the end of Windows Server 2008 support. Enterprise Mobility grew 35% to over 127M seats, and Enterprise Services revenue grew 6% (7% CC). The final category is More Personal Computing, which is still the biggest money-maker. Windows OEM revenue grew by an impressive 18%, and Microsoft says that this is due to last year's chip supply constraints. That includes 26% growth in Pro revenue and 4% growth in non-Pro revenue, and a lot of this has to do with the end of support for Windows 7. Windows Commercial products and cloud services grew by 25% (27% CC), thanks to growth in Microsoft 365. Surface revenue increased by 6% (8% CC), and there's no additional context provided by Microsoft on that one. Gaming revenue declined once again, this time by 21% (20% CC). Xbox content and services also declined, by 11% (9% CC), thanks to a big year last year that can be attributed to Fortnite. Finally, search advertising revenue increased by 6% (7% CC).

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