When presenting its financial results on April 27, Microsoft said its profits had increased by 44% in the first quarter of 2021. At a time when the Covid-19 pandemic is still raging and teleworking is the order of the day , such growth has been made possible by the dynamism of its cloud services for businesses.
$ 15.5 billion in profits
Microsoft reported revenue of $ 41.7 billion, up 19% year-on-year, and profit of $ 15.5 billion, which is up 44% from same period the previous year. Figures that far exceed the company’s estimates.
Even though, just hours after the announcement, Microsoft shares fell 3%, the web giant’s market capitalization is now approaching $ 2 trillion.
The cloud at the heart of Microsoft’s growth
Microsoft owes this growth in large part to its cloud activities. The company’s commercial revenue from the cloud indeed rose 33% in its fiscal third quarter.
Microsoft has also indicated that its Azure business revenues are up 50% from last year, while its overall revenues from the “Intelligent Cloud” are up 22% (reaching $ 15.1 billion ) at a time when workers around the world are relying more than ever on the cloud and digital services of companies to be able to work remotely.
“More than a year after the start of the pandemic, the digital adoption curves are not slowing down. They are accelerating, and this is only the beginning,” Satya Nadella, CEO of Microsoft, said in a statement. communicated. “We are building the cloud for the next decade, expanding our addressable marketplace and innovating on every layer of the technology stack to help our customers be resilient and transform.”