Browse Prior Earnings Releases:

Earnings Release FY21 Q1

NarrativePower BI

Productivity and Business Processes

Revenue increased $1.2 billion or 11%.

Office Commercial products and cloud services revenue increased $672 million or 9%, on a strong prior year comparable that benefited from transactional strength, primarily in Japan. Office 365 Commercial revenue grew 21%, due to seat growth of 15% and higher revenue per user. Office Commercial products revenue declined 30%, reflecting continued customer shift to cloud offerings from multi-year on-premises agreements and continued transactional weakness, as well as the impact from a strong prior year comparable.

Office Consumer products and cloud services revenue increased $140 million or 13%, driven by Microsoft 365 Consumer subscription revenue. Microsoft 365 Consumer subscribers increased 27% to 45.3 million.

LinkedIn revenue increased $297 million or 16%, driven by growth in Marketing Solutions.

Dynamics products and cloud services revenue increased 19%, driven by Dynamics 365 growth of 38%.

Operating income increased $924 million or 19%.

Gross margin increased $1.1 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 increased slightly 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 an increased mix of cloud offerings.

Operating expenses increased $155 million or 4%, driven by investments in cloud engineering and Teams marketing.

IMPORTANT NOTICE TO USERS (summary only, click here  for full text of notice); All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information. All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our  Forms 10-Q and 10-K.

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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards