Microsoft Corporation Q3 FY2021 Earnings Call
· Earnings call transcript and AI-powered summary
Quarter Overview
- Revenue reached $41.7 billion, up 19% year-over-year (16% in constant currency).
- EPS was $1.95, increasing 39% year-over-year (34% in constant currency after tax adjustments).
- Commercial Cloud revenue grew to $17.7 billion, up 33% year-over-year.
- Commercial bookings grew 39% year-over-year, reflecting a rising mix of strategic, long-term Azure and enterprise-wide Microsoft Cloud deals.
- Operating income grew 31% year-over-year with operating margins expanding to 41%.
Business Segment Performance
Productivity and Business Processes
- Revenue: $13.6 billion, up 15% year-over-year.
- Office 365 Commercial revenue grew 22% year-over-year, driven by seat growth and higher ARPU.
- Office Commercial licensing declined 25% due to cloud migration (worse than expected).
- Dynamics 365 revenue jumped 45% year-over-year, reflecting strong adoption across CRM and ERP workloads.
- LinkedIn revenue increased 25%, with Marketing Solutions up 64% year-over-year as the advertising market improved.
Intelligent Cloud
- Revenue: $15.1 billion, up 23% year-over-year.
- Azure revenue grew 50% (46% in constant currency), better than expected, driven by strong consumption-based services.
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