Wall Street loves big revenue making companies, and Microsoft has repeatedly been a company that delivers these big revenues. During Microsoft’s third quarter results on Thursday, the company announced $20.40 billion in revenue for the quarter, bolstered by the cloud and Office 365.
The $20 billion in revenue was a huge number for the company and outpaced what analysts thought that the company would do. With $5.66 billion in net income, this makes the third quarter results from Microsoft very pleasing for stockholders, analysts, and the employees of Microsoft.
Highlights Of Quarter
In its third quarter results, Satya Nadella stated that the company is making good progress in the consumer services like Bing and Office 365 Home, and getting commercial customers on board with the cloud services like Azure. The company sees these as long-term growth revenue makers, and is a bold move for the future.
The company posted $20.40 billion for the third quarter and delivered $14.46 billion in operating income. Along with that, $6.97 billion was net income with $0.68 per share for earnings. These huge billion dollar sectors for Microsoft show that the company is growing and getting customers of all types using its services.
Windows OEM revenue grew 4%, with a 19% growth in Windows OEM Pro revenue. Microsoft stated that Office 365 Home has 4.4 million subscribers with nearly 1 million subscribers in just three months. Microsoft sold 2 million Xbox console units and 1.2 million Xbox One consoles. Surface revenue grew over 50% to approximately $500 million, and Bing US search share grew to 18.6%.
Commercial numbers were also huge for Microsoft with revenue going up 7% to $12.23 billion. Office 365 revenue grew over 100%, commercial seats doubled, Azure revenue grew over 150%, and over 40 new features have been introduced. Windows volume licensing revenue grew 11%, and double digit growth could be seen with products like Lync, SharePoint, and Exchange. All of this shows that commercial and enterprise focuses by the company are making Microsoft a stronger company by the day, and by the quarter.
These third-quarter results were huge for Microsoft. $20 billion in revenue is nothing to sneeze at, and Microsoft hit a home run with these number.Microsoft Posts $20 Billion In Revenue For Third Quarter