Microsoft's revenue increased 14% year-on-year, while the Xbox and Surface markets were sluggish


by

efes

Microsoft reported that in the first quarter of fiscal 2020, it achieved revenue of $ 33.1 billion (about 3.6 trillion yen), which exceeds the analyst's forecast of 32.320 billion yen (about 3.5 trillion yen) Did. It is reported that Azure, a Microsoft cloud service platform, is doing well.

FY20 Q1-Press Releases-Investor Relations-Microsoft
https://www.microsoft.com/en-us/Investor/earnings/FY-2020-Q1/press-release-webcast


Microsoft beat expectations with strong Windows revenue, but Xbox had a rough quarter | Ars Technica
https://arstechnica.com/gadgets/2019/10/microsoft-beat-expectations-with-strong-windows-revenue-but-xbox-had-a-rough-quarter/

According to Microsoft, revenues of $ 33.1 billion have increased by 14% compared to the same period last year. Operating income increased 27% year-on-year to $ 12.7 billion (approximately 1,380 billion yen) , and net income increased 21% year-on-year to $ 10.7 billion (1,160 billion yen). It is. EPS (profit per share) was $ 1.38 (about 150 yen), an increase of 21% compared to the same period of the previous year.

Most of Microsoft's revenue comes from Azure success. In fact, “ Intelligent Cloud ” segment revenue was $ 10.8 billion, an increase of 27% over the same period last year. In particular, Azure revenue increased 59% year-on-year.

In the fourth quarter of 2019, Azure revenues grew 64% year-on-year, so analysts and investors expect that “Azure growth is slowing” As Amazon Web Service growth has slowed even in Amazon's quarterly results , the cloud service industry as a whole is becoming saturated.


by

Rainer Stropek

In addition, “ Productivity and Business Processes ”, a group of software products and services such as Office and LinkedIn, generated a total of $ 10.8 billion (about ¥ 1.9 trillion), showing a 27% increase over the same period last year. That. Especially, Office 365 Business revenue increased by 25%, and Office segment revenue increased by 13% from the same period last year. According to Microsoft, 35.6 million people are subscribed to Office 365 SaaS .

The “ Personal Computing ” category, which includes games, various hardware, and Windows, recorded a record high of $ 11.1 billion (about 1.2 trillion yen), but the game business is not doing well.

Although the Xbox platform is performing well, Microsoft says that the number of stationary game consoles will remain unchanged, and revenue from Xbox content and services will not change significantly. Ars Technica, a technical media, commented, `` Because new PlayStation 5 and Xbox models are expected to be released in 2020, it is expected that the growth of the game platform will slow down. '' .


by Anthony

Surface also reported a 4% decline in revenue from the same period last year. However, Ars Technica points out that Surface Go was just released in the same period of the previous year, but `` In any case, Surface does not contribute much to Microsoft's revenue '' It was.

in Note,   Software, Posted by log1i_yk