business news

Microsoft reports 15% revenue jump in third quarter financial results

Microsoft reports 15% revenue jump in third quarter financial results
Microsoft reports 15% revenue jump in third quarter financial results

American multinational conglomerate, Microsoft has recently revealed its third quarter financial results, recording a 15% rise in revenue and a 22% increase in net income. These numbers are promising, especially in the current scenario where the whole world is facing a financial slowdown due to coronavirus pandemic.

According to reports, Microsoft has reported a net income of $10.8 billion and revenue of $35 billion, assuring its stakeholders by showing the minimal impact COVID-19 over the total company revenue. However, Microsoft has acknowledged the slowdown in transactional licensing in the final weeks of the March quarter, particularly in medium and small enterprises as well as a drop in LinkedIn advertisement spending.

In this quarter, Windows has managed to become the standout performer of the lot as the market witnessed an exponential rise in PC demand. Due to this pandemic, businesses all over the world are compelled to adopt practices like work from home and remote working, which has significantly benefited Microsoft through its cloud offerings and Office business.

Commenting on the development, Satya Nadella, CEO, Microsoft, said that the company has witnessed two years’ worth digital transformation within these two months. From sales and customer service, remote teamwork and learning, to security and critical cloud infrastructure, the company is constantly working with its customers to help them efficiently operate their business in this world of remote working.

Apart from Windows PCs and software, Microsoft’s gaming platform, Xbox gaming, and consoles have also shown a strong development, with recent reports suggesting that console spending has gone up during this epidemic. As per Microsoft’s report, the overall gaming revenue dipped down 1 percent this quarter, meanwhile Xbox service and content recorded a growth of 2 percent.

Microsoft is planning to further give details about its Xbox Series X, while shedding light on some of the games that would be available on the console.

Source Credit: https://www.theverge.com/2020/4/29/21241681/microsoft-q3-2020-earnings-surface-windows-xbox-revenue-profit