Microsoft seems to be weathering the COVID-19 storm so far after stating that the ongoing pandemic has had a “minimal net impact” on the company’s revenue.
The tech giant reported Q3 2020 revenue of $35 billion USD (about $48 billion CAD) in Q3 2020, a 15 percent increase over last year, and net income of $10.8 billion USD (roughly $14.9 billion CAD), an increase of 22 percent. The company also noted that it’s experiencing a surge in cloud usage among both consumers and businesses, which makes sense given many people are now working remotely.
“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 related to Microsoft’s corporate and consumer office products surged by 13 and 15 percent, respectively. On the other hand, Surface device revenue only increased by one percent, with Xbox content and services revenue increased by two percent.
Productivity and business processes, Microsoft’s earnings category, which includes Office, LinkedIn and Dynamics, earned $11.7 billion USD (about $16.2 billion CAD) this quarter. Its personal computing revenue, which includes Windows, Surface and Xbox, earned $11 billion USD (approximately $15.2 billion CAD).
It wasn’t all good news for Microsoft, though. Search advertising revenue only increased by one percent, likely falling well below the tech giant’s expectations.
Looking to the future, despite the ongoing COVID-19 pandemic, Microsoft says it still plans to release its next-generation video game console, the Xbox One Series X. There are also rumours circulating that the tech giant could be planning to release the Surface Book 3 soon.