Microsoft Corporation Q2 FY2021 Earnings Call
· Earnings call transcript and AI-powered summary
Quarter Overview
- Revenue reached $43.1 billion, up 17% year-over-year (15% in constant currency).
- Earnings per share were $2.03, increasing 34% year-over-year.
- Commercial Cloud revenue grew to $16.7 billion, up 34% (32% constant currency).
- Operating income rose 29% with operating margins expanding to 42%.
- Free cash flow reached $8.3 billion, up 17% (and 41% excluding tax settlement effects).
- Shareholder returns totaled $10 billion, an 18% increase year-over-year.
Business Segment Highlights (Year-over-Year Comparisons)
Productivity & Business Processes
- Revenue: $13.4 billion, up 13% (11% constant currency).
- Office 365 Commercial: +21%; paid seats +15% with strong trial conversions.
- Office Consumer: +7%; 47.5 million Microsoft 365 consumer subscribers (+28%).
- Dynamics: +21%, with Dynamics 365 up 39%.
- LinkedIn: +23%; marketing solutions +53% as advertising markets recovered.
Intelligent Cloud
- Revenue: $14.6 billion, up 23% (22% constant currency).
- Azure: +50% (48% constant currency), driven by consumption growth and industry recovery.
- On-premises server: +4%; EMS installed base +29% to 163 million seats.
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