Browse Prior Earnings Releases:
Earnings Release FY21 Q2
Productivity and Business Processes
Revenue increased $1.5 billion or 13%.
• Office Commercial products and cloud services revenue increased $807 million or 11%, on a strong prior year comparable. Office 365 Commercial revenue grew 21%, due to seat growth of 15% and higher revenue per user. Office Commercial products revenue declined 26%, driven by continued customer shift to cloud offerings from multi-year on-premises agreements and continued transactional weakness, on a strong prior year comparable that benefited from transactional strength, primarily in Japan.
• Office Consumer products and cloud services revenue increased $79 million or 7%, driven by Microsoft 365 Consumer subscription revenue, on a strong prior year comparable that benefited from transactional strength in Japan. Microsoft 365 Consumer subscribers increased 28% to 47.5 million.
• LinkedIn revenue increased $475 million or 23%, driven by advertising demand in our Marketing Solutions business.
• Dynamics products and cloud services revenue increased 21%, driven by Dynamics 365 growth of 39%
Operating income increased $999 million or 19%.
• Gross margin increased $1.2 billion or 13%, driven by growth in LinkedIn and Office Commercial, and the change in estimated useful lives of our server and network equipment. Gross margin percentage was relatively unchanged with the change in estimated useful lives of our server and network equipment. Excluding this impact, gross margin percentage decreased, driven by increased usage of Office 365 Commercial and a sales mix shift to cloud offerings.
• Operating expenses increased $167 million or 4%, driven by investments in commercial sales, Teams marketing, and cloud engineering.
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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards