Microsoft says COVID-19 had 'minimal' impact on its business
But it did lead to more cloud and remote work usage.
Microsoft seems to be faring the coronavirus pandemic just fine. In its Q3 2020 earnings report, Microsoft assured investors that COVID-19 had a “minimal net impact” on the company’s revenues. The numbers don’t lie: it’s reporting revenue of $35 billion for the quarter, 15 percent more than last year, and net income of $10.8 billion (up 22 percent). And, not surprisingly, Microsoft noted that it’s seeing more cloud interest among consumers and businesses alike.
“We’ve seen two years’ worth of digital transformation in two months. From remote teamwork and learning, to sales and customer service, to critical cloud infrastructure and security – we are working alongside customers every day to help them adapt and stay open for business in a world of remote everything,” Microsoft CEO Satya Nadella said in a statement.
Revenue for Microsoft’s corporate and consumer Office products increased by 13 and 15 percent, respectively. Its Surface and Windows also benefited from the increased demand for remote work and learning tools, though due to supply issues in China, they didn’t grow nearly as much. The company says Windows OEM sales (what computer manufacturers pay) remained flat over the last year, while Surface revenue increased only by 1 percent.
Not surprisingly, search advertising revenue was negatively impacted by COVID-19, something the media industry is seeing on a larger level. Still, that segment still grew by 1 percent. Once again, everything is coming up Microsoft.
