Browse Prior Earnings Releases:
Earnings Release FY20 Q4
Productivity and Business Processes
Revenue increased $5.2 billion or 13%.
• Office Commercial products and cloud services revenue increased $3.1 billion or 12%, driven by Office 365 Commercial, offset in part by lower revenue from products licensed on-premises, reflecting a continued shift to cloud offerings. Office 365 Commercial revenue grew 24%, due to seat growth and higher revenue per user.
• Office Consumer products and cloud services revenue increased $458 million or 11%, driven by Microsoft 365 Consumer subscription revenue and transactional strength in Japan. Office 365 Consumer subscribers increased 23% to 42.7 million with increased demand from remote work and learn scenarios.
• LinkedIn revenue increased $1.3 billion or 20%, driven by growth across all businesses.
• Dynamics products and cloud services revenue increased 14%, driven by Dynamics 365 growth of 42%.
Operating income increased $2.5 billion or 15%.
• Gross margin increased $4.1 billion or 13%, driven by growth in Office Commercial and LinkedIn. Gross margin percentage was relatively unchanged, due to gross margin percentage improvement in LinkedIn, offset in part by an increased mix of cloud offerings.
• Operating expenses increased $1.6 billion or 11%, driven by investments in LinkedIn and cloud engineering.
Revenue, gross margin, and operating income included an unfavorable foreign currency impact of 2%, 2%, and 4%, respectively.
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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards