Demand for Microsoft’s cloud-computing companies and work software program helped increase its quarterly income by 21 % because the pandemic continued to maintain many workplace employees at the least partly at residence.

The Redmond, Washington firm on Tuesday reported fiscal second-quarter revenue of $18.8 billion. It posted income of $51.7 billion for the October-December interval, up 20 % from a 12 months earlier.

In a name with buyers, CEO Satya Nadella stated the corporate is transitioning from a interval of pandemic-fuelled demand to at least one during which digital know-how will help overcome financial constraints to “drive productiveness whereas preserving prices down.”

“The other area we are seeing strength is gaming,” Nadella stated. “That’s where we have doubled down in terms of our consumer category.”

Microsoft final week introduced its plans to purchase high-profile recreation writer Activision Blizzard for $68.7 billion (roughly Rs. 5,10,990 crore), an all-cash deal that could possibly be the priciest tech acquisition in historical past if it withstands scrutiny by antitrust regulators. It may additionally catapult the Xbox-maker forward of Nintendo to hitch Sony and Tencent as one of many three largest online game corporations.

But the monetary outcomes revealed Tuesday present that business-focused choices corresponding to Microsoft’s Azure cloud computing platform and its suite of software program merchandise are nonetheless driving the corporate’s progress.

Net earnings of $2.48 (roughly Rs. 190) per share beat Wall Street expectations. Analysts surveyed by FactSet had been anticipating Microsoft to earn $2.32 (roughly Rs. 175) per share on income of $50.71 billion (roughly Rs. 3,80,360 crore) for the fiscal quarter. It’s the primary time the corporate hit over $50 billion (roughly Rs. 3,75,030 crore) in gross sales in a three-month interval.

Beating analysts’ forecasts wasn’t sufficient to cease Microsoft shares from first dropping, then rising about 2 % in after-hours buying and selling on a jittery day for buyers. As markets have been swinging between steep losses and positive factors, costly shares in high-flying tech corporations have led losses as buyers fear about rising rates of interest.

Sales from Microsoft’s cloud computing enterprise section — the place its largest competitor is Amazon — grew 26 % to $18.3 billion (roughly Rs. 1,37,260 crore) within the quarter ending in December.

Microsoft’s productiveness section, which incorporates its Office suite of office merchandise corresponding to electronic mail, grew by 19 % from the identical interval a 12 months earlier, to $15.9 billion (roughly Rs. 1,19,270 crore).

The productiveness section additionally consists of income from Microsoft’s LinkedIn jobs networking service, which elevated 37 % from the identical time a 12 months earlier. Nadella stated it is getting extra engagement due to the “great reshuffle across the labor market.”

The firm late final 12 months halted its localised model of LinkedIn in mainland China, citing tightening authorities restrictions affecting the one main Western social networking platform that had nonetheless operated within the nation.

Microsoft’s private computing enterprise, which incorporates Windows software program licenses, Xbox ,and the Surface line of gadgets, grew by 15 % to $17.5 billion (roughly Rs. 1,31,275 crore).

Holiday gadget gross sales usually make the October-December quarter an essential one for Surface gadgets and Xbox video games and consoles. The firm stated Xbox content material and companies income grew 10 % over the identical time a 12 months earlier. Xbox {hardware} income grew extra modestly at 4 % — partly as a result of numbers in late 2020 had been boosted by the discharge of Microsoft’s Xbox Series X system, the corporate’s first new console since 2013.

Microsoft expects that snapping up Activision, the proprietor of well-liked video games corresponding to Candy Crush, Call of Duty, Overwatch, and World of Warcraft, will increase demand for its Xbox Game Pass subscription service whereas additionally advancing its broader ambitions for immersive digital worlds.

“The next wave of the internet will be a more open world where people can build — a more metaverse world,” Nadella instructed buyers Tuesday.