Microsoft has released the results of its second quarter of fiscal 2020, ending on 31 December 2019. The house of Redmond reconfirms the positive trend of previous quarters: revenue and operating income are once again increased on an annual basis. Compared to Q1 2020, in which to shine were the divisions in the cloud, and Office, is recorded a step of the device Surface, and of the sale of Windows licenses. Cloud and Office are again the two main axes of the activities of Microsoft. The division Xbox is in difficulty.

Note: the percentages in parentheses indicate the increase or decrease in the value compared to the same period of the previous year):

  • Revenue: 36,9 billion, +14%
  • Operating income: $ 13.9 billion, +35%
  • Net income: 11.6 billion dollars, +38% (GAAP) and +36% (non-GAAP)
  • Diluted earnings per share: 1,51 dollars, +40% (GAAP) and +37% (non-GAAP)

The results of the three macro-areas of activities of Microsoft are summarised as follows in the budget:

  • Office, LinkedIn, Dynamics (Productivity and Business Process): 11.8 billion dollars in revenues, +17%
  • Azure, server products, and business (Intelligent Cloud): 11.9 billion dollars of revenue, up+27%
  • Surface, Windows, Xbox, Bing (More Personal Computing): $ 13.2 billion, +2%

In the section of the budget, the “More Personal Computing” (contains the results of the products like Surface, Windows, Xbox, and advertising) it records the increase in sales of the devices to the Surface, thanks to the arrival of the new models introduced in the autumn, or the Surface Laptop 3 13, and 15, Surface Pro 7 and Surface Pro X. it’s an increase, says CFO Amy Hood, lower-than-expected – albeit objectively positive, especially when compared to the figure for the previous quarter – and in good part determined by the success of the Surface in the context of the company.

Sign more also for the activities related to the sales of Windows licenses, with the complicity of the end of support of Windows 7, which has pushed more and more users to make the switch to Windows 10. Less well the division Xbox that records an overall decline in revenue of 21% – the new generation of consoles is still far away and, meanwhile, decrease also the revenues arising from the sale of content and services. As partial consolation, there is the data record of the users Xbox Live active on a monthly basis and one of the subscribers of the Xbox Game Pass more than doubled in the course of the quarter.

  • Windows OEM revenue +18%
  • Windows products Commercial and cloud services, +25%
  • Surface, revenues +6%
  • Search advertising, revenues +6%
  • Xbox (content and services) , revenues -11%

The $ 12.5 billion of revenue generated by the cloud business in the quarter (+39% on an annual basis) says a lot about the importance of this sector of activity in total budget of Microsoft. In more detail:

  • Server products and cloud services, with revenues up 30% driven by the revenue of the Azure rose 62%
  • Enterprise services, revenues increased 6%

Another plus for the activities related to Office, LinkedIn , and the products Dynamics:

  • Office products Commercial and cloud services, revenue +16%, driven by revenue from the Office 365 Commercial increased 27%
  • Office products, Consumer, and cloud services, revenue +19%, users Office 365 Consumer have reached the level of usd 37,2 million, were up 35.6 in the previous quarter)
  • LinkedIn, revenue +24%
  • Products Dynamics and cloud services, revenue +12%