Today Microsoft reported its third-quarter, fiscal 2020 quarter earnings, the period of time corresponding to Q1 2020 on the regular calendar.

The technology giant generated $35 billion in revenue, up 15% from the year-ago period. That top line led to $13 billion in operating income (+25% YoY), and $10.8 billion in net income (+22% YoY). Microsoft saw $1.40 in earnings per share in the quarter.

Investors had expected the company to report $1.26 in per-share profit off of revenue of $33.66 billion, according to Yahoo Finance. Right after reporting its results, Microsoft shares were up around 1.5%. The firm rallied 4.5% during regular trading hours on the back of a strong day of trading for technology equities.

Other headlines from the company’s earnings report include Azure (its AWS competitor) growing 59% from its year-ago result, 25% growth in Office 365 commercial incomes, LinkedIn top line growing 21% from the year-ago period, and roughly flat results from its Xbox, search, and Surface businesses.

However, calendar Q1 (Q3 F2020 for Microsoft) only included a portion of the world’s COVID-19 response. The results reflected that, with the company noting that “COVID-19 had minimal net impact” on revenue in the quarter, boosting cloud usage, lowering some advertising revenue from LinkedIn, raising gaming engagement, and slowing search advertising top line. The balance of that appears to be largely a wash.

As Uber reportedly contemplates layoffs, a look back at its post-IPO financial performance

The company will talk more about the future on its earnings call, but the firm did warn in its own report that “the effects of COVID-19 may not be fully reflected in the financial results until future periods.”

Metrics

In case anyone else is interested in other metrics, we’ve collected the most interesting numbers from Microsoft’s earnings slides for your enjoyment. Here they are:

  • Q3 F2020 aggregate gross margin: 69%, +2% YoY
  • Q3 F2020 aggregate operating margin: 37%, +3% YoY
  • The company’s commercial bookings growth dropped sharply compared to preceding quarters; a portion of this was due to currency changes, which lowered growth in the category from 12% to 7% (YoY). The preceding lowest set of results since Q3 F2019 was that year’s Q4 which saw 22% growth (YoY) and 25% on a currency-adjusted basis.
  • Commercial cloud revenue at Microsoft as $13.3 billion in the quarter, up 39% YoY. Remember when Microsoft wanted to hit a $20 billion run rate for commercial cloud revenue? Good times.
  • LinkedIn got name-checked as a driver of rising operating expenses, which rose 10% to $11.1 billion; the only other category noted was cloud engineers. Which, to be clear, are expensive.
  • Microsoft returned $9.9 billion to shareholders in the quarter, and spent $3.9 billion on capital expenditures. (Why aren’t those flipped?)
  • And finally, operating cash flow at the company was $17.5 billion in the quarter. Chew on that, startups.

On the whole it was a good quarter for the company, which didn’t take too much damage from COVID-19. Of course, its outlook will matter quite a lot when we get it. For now, investors are content.

Read more: https://techcrunch.com/2020/04/29/microsoft-shares-rise-after-the-tech-giant-posts-15-growth/

56 COMMENTS

  1. I do not even know how I ended up here, but I thought this post was good.
    I don’t know who you are but certainly you are going to a famous blogger if you are not already 😉 Cheers!

  2. I don’t even know how I ended up here, but I thought
    this post was great. I don’t know who you are but definitely you’re going to a famous blogger if you are not already 😉
    Cheers!

  3. Hello there! Do you know if they make any plugins to safeguard against hackers?
    I’m kinda paranoid about losing everything I’ve worked hard on. Any recommendations?

  4. I do enjoy the way you have framed this particular difficulty and it does indeed supply us some fodder for consideration. Nonetheless, through just what I have personally seen, I basically wish when the responses pile on that people continue to be on point and don’t get started upon a soap box associated with some other news of the day. Yet, thank you for this fantastic point and though I do not go along with the idea in totality, I respect the viewpoint.

  5. Я коллектив специалистов, понимающих собственное проблема также беспокоящихся об периода собственных покупателей. Я размещаем рекламу во Столице также Столичной сфере, однако исключая того согласие целой Российской Федерации, в случае если вопрос относится digital услуг. Во маркетинговых кампаниях следуем приборами, какие подобранны отталкиваясь с особенности полнее также вопросов покупателей.

    бизнес центр рязанский проспект

  6. Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your point.
    You definitely know what youre talking about, why throw away
    your intelligence on just posting videos to your weblog when you could be giving us something informative to read?

  7. Hello there! This post couldn’t be written any better! Reading through this post reminds me of my good old room mate! He always kept chatting about this. I will forward this article to him. Fairly certain he will have a good read. Many thanks for sharing!

LEAVE A REPLY

Please enter your comment!
Please enter your name here