Microsoft has released its quarterly earnings for the third quarter of fiscal 2020, and Azure stands out as one of the company’s big hits.
Analysts were deeply interested in Microsoft’s earnings for this quarter, in view of the ongoing coronavirus pandemic. How the company faired would be a good indicator of the overall impact the pandemic is having. In its earnings, Microsoft beat analysts exceptions, reporting revenue of $35 billion, representing a 15% increase over the year-ago-quarter.
A particular standout was the company’s Azure cloud business, which saw revenue growth of 51%.
“We’ve seen two years’ worth of digital transformation in two months. From remote teamwork and learning, to sales and customer service, to critical cloud infrastructure and security – we are working alongside customers every day to help them adapt and stay open for business in a world of remote everything,” said Satya Nadella, chief executive officer of Microsoft. “Our durable business model, diversified portfolio, and differentiated technology stack position us well for what’s ahead.”
“In this dynamic environment, our sales teams and partners executed a solid third quarter, with Commercial Cloud revenue generating $13.3 billion, up 39% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We remain committed to balancing operational discipline with continued investments in key strategic areas to drive future growth.”
The quarterly report was good news, and Microsoft made a point of highlighting that the pandemic had minimal impact on its revenue. However, there was a note of caution, as the company acknowledged “the effects of COVID-19 may not be fully reflected in the financial results until future periods.”