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Microsoft’s quarterly profit grows 30% – thanks in large part to the cloud division of Azure
28.10.2021 [11:06],
Arthur Khamzin

Microsoft publishes financial report for the third quarter, in which it shares its successes. The company’s revenue exceeded the expected figures by 12% – $ 37.2 billion instead of $ 35.7 billion. Net profit of the IT giant grew by 30% to $ 13.9 billion.

Mike Blake, Reuters

Xbox Gaming and Azure Cloud are the main drivers of growth. Cloud business revenue is up 48%, up one percent from the previous quarter. CFO Amy Hood explained to Reuters that the development is associated with an increase in the number of long-term contracts.

The company also boasted of growing Dynamics 365 (a set of business applications to simplify work). Hood said division revenue was 38% higher than expected.

Microsoft also converted some of its products to subscription format. As Reuters notes, investors favor this approach because it provides a stable source of income. The cost of recurring contracts with big business has not changed.

Intelligent Cloud also showed strong growth, with revenues growing by 20% (to $ 13 billion). Revenue of the personal computers division (including Windows and Xbox consoles) grew by 6% to $ 11.8 billion.