Microsoft has announced earnings for the quarter ended March 31, 2020. the company posted $35.0 billion of revenue for the quarter. Compared to the corresponding period of last fiscal year, Microsoft has recorded a 15 percent increase.
Net income for the quarter increased by 22 per cent to $10.8 billion. Operating income $13.0 billion and increased by 25 per cent while diluted earnings per share were $1.40 and increased by 23 per cent.
“We’ve seen two years’ worth of digital transformation in two months. From remote teamwork and learning to sales and customer service, to critical cloud infrastructure and security. We are working alongside customers every day. To help them adapt and stay open for business in a world of remote everything,” said Satya Nadella, chief executive officer of Microsoft.
“In this dynamic environment, our sales teams and partners executed a solid third quarter. With Commercial Cloud revenue-generating $13.3 billion up 39% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We remain committed to balancing operational discipline with continued investments in key strategic areas to drive future growth.”
In the third quarter of the fiscal year 2020, COVID-19 had a minimal net impact on the total company revenue. Cloud usage increased particularly in Microsoft 365 including Teams, Azure, Windows Virtual Desktop, advanced security solutions, and Power Platform. Since customers have shifted to work and learn from home in the final weeks of the quarter. There has been a slowdown in transactional licensing. Particularly in small and medium businesses and a reduction in advertising spend on LinkedIn.
Microsoft Office Commercial products and cloud services revenue increased by 13 per cent. Office Consumer products and cloud services revenue increased by 15 per cent. Following continued growth in Office 365 Consumer subscribers to 39.6 million.
LinkedIn revenue for the period increased by 21% while dynamics products and cloud services revenue increased by 17 per cent.