Microsoft cloud strength drives financial results

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The company’s sustained good performance gives confidence that Microsoft Dynamics 365 implementation partners and their customers have an innovative future ahead of them. Microsoft’s share continues to grow, jumping 63% in 2020. This growth does not seem to end yet.

Microsoft Corp. recently announced its results for the last quarter of 2020 with revenue of $ 43.1 billion. Up 17% compared to the same period last year. With operating income of $ 17.9 billion (up 29%) and earnings per share of $ 2.03 (up 34%). These results out-performing the analyst expectations. Net income rose 33% compared to the same quarter last year, reaching $ 15.5 billion.

Cloud strength – Microsoft grows and develops despite the global crisis

Microsoft cloud strength drives financial results

Microsoft grows and develops despite the global crisis. The revenue from the Dynamics ERP and CRM products and cloud services increased 21%. They were mostly driven by Dynamics 365 cloud revenue growth of 39%. In Q1 2021, Dynamics products and cloud services revenue were up 19%. They were driven by Dynamics 365 revenue growth of 38%. This growth is about three times faster than the market for ERP and CRM solutions.

“Accelerating demand for our differentiated offerings drove commercial cloud revenue to $16.7 billion, up 34% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “We continue to benefit from our investments in strategic, high-growth areas.”

Many providers of business software have been hardly hit by the current crisis. Their stagnating or even declining turnover often translates into savings on the R&D spending. The pace of employing new employees is slowing down and innovation is falling. Microsoft’s sustained growth enables the company to continue its investments in the field of research and development. And also in personnel growth and continuous innovation. Speeding up its mission to empower every person and every organization on the planet to achieve more.

Second wave of digital transformation

“What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry,” said Satya Nadella, chief executive officer of Microsoft. “Building their own digital capability is the new currency driving every organization’s resilience and growth. Microsoft is powering this shift with the world’s largest and most comprehensive cloud platform.”

Microsoft is a partner with a vision for the future

The ongoing strong results confirm the confident that the Microsoft Dynamics 365 implementation partners and their customers have in an ongoing innovative future. Dynamics 365 partners often say “a strategic choice for a Microsoft Dynamics 365 solutions is a choice for a stream of innovation that will never stop”. 

Microsoft’s shares have been on a steady rise, jumping 63% in 2020. This increase does not seem to be coming to an end. For the time being since Microsoft also announced stronger-than-expected revenue guidance for quarter that runs from January till March 2021. In reaction to these announcements, the Microsoft stock moved to an all-time high level.

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