Revenue Up 14% In Microsoft Q2 2020 Earnings

Microsoft Campus

Any early guesses which lineups put on a good show? Microsoft has announced its quarterly earnings, this time for Q2 2020, which translates to the second quarter of its fiscal year 2020.

And once again, the company showed strong growth in a number of key areas to go with dips and declines in a few expected places.

You can dig up the full numbers here.

But the main talking points are that the company landed with a 14% increase in revenue year-over-year, for a total of $36.9 billion in revenue. Breaking things down, we have $11.8 billion in Productivity and Business Processes, $11.9 billion in Intelligent Cloud, and $13.2 billion in More Personal Computing.

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Distilling things down further, we have enough data to make sense of what seems to be working well for Microsoft and what not.

Starting with Office Consumer products revenue saw an uplift of 19%, while Productivity and Business Processes growth was driven by Office 365 and LinkedIn. We have an impressive 27% growth in Office 365 Commercial revenue, with seats increasing by 21%.

LinkedIn, revenue saw an uptick of by 24%, while sessions grew by 25%.

Dynamics products and services grew by 12%, with Dynamics 365 revenue growing by 42%.

On the Intelligent Cloud side of things, we have server products and cloud services that saw an increase to the tune of 30% (32% CC), driven by a fancy 62% growth in Azure revenue. Server products is also up by 10%, thanks in no small part due to the end of Windows Server 2008 support.

The more interesting category is More Personal Computing, which is still the biggest money-maker for the Redmond giant. Here, Windows OEM revenue grew by an impressive 18%, and it includes 26% growth in Pro revenue and 4% growth in non-Pro revenue.

One can imagine that this has got a lot of this has to do with the end of support for Windows 7.

Surface revenue increased by 6%, though gaming numbers declined once again, this time by as much as a stingy 21%. Search advertising revenue increase by a solid 6%, however.

Of course, the company is not all that transparent in that it does not tell us how much money is actually being generated by any of these categories. But then again, Microsoft earning reports lately have more of a stability going for them, instead of surprises.

Not complaining, though.

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