Microsoft earnings beat expectations despite coronavirus impact


Microsoft seems to be faring the coronavirus pandemic just fine.

The demand for Microsoft was robust across product lines such as Azure, Teams and Windows Virtual Desktop.

He said Microsoft has "seen two years' worth of digital transformation in two months" and admitted the affects of COVID-19 "may not be fully reflected in the financial results until future periods". Nadella noted that its Xbox Live online gaming service had almost 90 million monthly active users, and its Xbox Game Pass, which provides access to its game catalogue, had more than 10 million subscribers in the period, both records for the company.

The numbers don't lie: it's reporting revenue of $35 billion for the quarter, 15 percent more than previous year, and net income of $10.8 billion (up 22 percent).

Microsoft said revenue for its "commercial cloud", a combination of Azure and the cloud-based versions of software such as Office, rose 39 percent to $13.3 billion (roughly Rs. 99,700 crores).

Social media firm Facebook said its revenue came to 17.7 billion dollars, up about 18 percent from a year ago.

British minister: Children are dying of the new disease under the coronaepidemi
A hospital worker cleans an ambulance outside St Thomas' hospital in London, England, on April 1, 2020. Testing: The daily testing capacity is now at 73,000, the health secretary said.

Microsoft shares rose during Wednesday's trading, finishing at $177.43, up 4.5 percent for the day.

However, calendar Q1 (Q3 F2020 for Microsoft) only included a portion of the world's COVID-19 response.

Microsoft returned $9.9 billion to shareholders in the form of share repurchases and dividends in the third quarter of fiscal year 2020, an increase of 33% compared to the third quarter of fiscal year 2019. Gaming also benefitted from stay-at-home guidelines across the globe.

In one of the toughest financial quarters in decades, Microsoft managed once again to beat analyst expectations and post double-digit increases on revenue and earnings. And like Google-parent Alphabet's earnings announcement Tuesday, Microsoft, too, is getting stronger, a sign that the economic fallout from the coronavirus may help the biggest tech giants consolidate their power. Microsoft also saw a 15% increase in total revenue of $35.0 billion, and a 25% increase in operating income of $13.0 billion. For the unit that includes Office software - both cloud and traditional sales - revenue climbed to $11.7 billion.

Turnover at its "intelligent cloud" segment rose 27%, year-on-year, to $12.3 billion. Although the company reported a reduction in advertising spending in LinkedIn towards the final weeks of the quarter.

The Redmond, Washington, company on Wednesday, however, said that its revenue still ended up in the range of its original forecast because of a quick improvement in supply chains combined with increased demand for PCs by workers forced by the pandemic to work from home.