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Microsoft reports strong Surface, Xbox, and cloud growth for Q3 2021

geary

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https://www.microsoft.com/en-us/investor/earnings/FY-21-Q3/
Revenue: $41.7 billion ⬆️ 19%
Operating income: $17.0 billion ⬆️ 31%
Net Income: $15.5 billion ⬆️ 44% GAAP; $14.8 billion ⬆️ 38% non-GAAP
EPS: $2.03 ⬆ 45% GAAP; $1.95 ⬆️ 39% non-GAAP

https://www.theverge.com/2021/4/27/...gs-revenue-xbox-cloud-services-surface-gaming
1. Xbox hardware revenue up 232%
2. Gaming revenue up 50%, Xbox content + services up 34%
3. 50.2 million Microsoft 365 subscribers
4. Windows OEM revenue up 10% and Surface up 12%
 
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Dabaus

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Apr 23, 2018
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-Its year over year so xbox series S/X werent out hence the huge jump in revenue for hardware
-Again year over year and growth is 50 percent, not bad but not earth shattering either. Better than going down.
-Theres 0 context for what these percentage jumps mean.
 
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AnotherOne

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Dj Khaled GIF by AMAs


Hell yeah glad to see xbox doin well.
 
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TBiddy

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Best quarter results (Gaming department) OF THE LAST 6 years. The turnaround is happening 🤟

But but but gamepass is loosing money. LMAO…..

Revenue doesn't equal profit, though. Still, it's very impressive numbers, which is also evident, when the very first post in the thread is by a resident Sony fanboy, desperately trying to downplay the numbers.
 

Clear

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Revenue doesn't equal profit, though. Still, it's very impressive numbers, which is also evident, when the very first post in the thread is by a resident Sony fanboy, desperately trying to downplay the numbers.
232% increase in hardware versus only 34% content and services indicates they are primarily selling to their pre-existing userbase. Given their focus on GP you'd want to see those numbers flipped.
 
Feb 23, 2018
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Q3 2021 in April? Fiscal years are weird.
Most companies that have a seasonal business will plan their fiscal year so that the busiest months occur in the middle of it. That way their quarter with the most activity isn't also the end of their fiscal year. I assume a lot of videogame companies have fiscal year ends in the summer since those are the slow months for game sales.

Looking at their past revenue it actually looks like Q2 and Q4 are Microsoft's highest revenue quarters, which makes sense since that would be mid year and end year budgeting at companies that use Microsoft for enterprise services.
 

reksveks

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office subscriber numbers but no GP sub numbers? weird considering GP is suppose to be their baby and obviously what they are wanting to push. Also am i missing the software sales or is that not going to be listed in a report like this?
Microsoft is an office and azure company. Just wait for Windows as a Service to come out as a real thing.
 

Renozokii

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Best quarter results (Gaming department) OF THE LAST 6 years. The turnaround is happening 🤟


But but but gamepass is loosing money. LMAO…..
These numbers sound shit to me? Anyone else?

Going up only 232% with the launch of a new 500 dollar console compared to the 200ish you could get a one for should result in much higher numbers, no?

Other revenue increasing by 34% with millions getting new consoles and reupping their subs and buying more games than usual doesn’t seem great?

Best quarter results in only 6 years means year one for the Xbox one made more money?

Also none of this equates to profit. Gamepass very likely still is losing money.
 

geary

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232% increase in hardware versus only 34% content and services indicates they are primarily selling to their pre-existing userbase. Given their focus on GP you'd want to see those numbers flipped.
These numbers flipped would never happen in this interval of time. It's the starting of the generation so many games will went from XBONE to XSX/S and getting over 200% raise in GP would mean more than 20 millions new users which is not achievable in the timeframe
 

ChuckeRearmed

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Yeah, it's a drop which is in the personal computing division which I think includes xbox. I don't know if that drop is normal but can have a look
It seems like Q3 is always smaller than Q2. And also that 19% increase is in comparison to Q3 of the previous year it seems.

Microsoft is an office and azure company. Just wait for Windows as a Service to come out as a real thing.
Well, Windows is essentially free right now anyway. Probably will become Chromebook like system in the future.

I bet it is less for the release because it ends in March and not in April - so before Outriders and MLB. Will be either 21 or 22.
 
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bender

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On the one hand, 12% isn't a great showing for Surface as industry demand will let you sell just about anything at this point. On the other hand, supply constraints and Microsoft's place in the OEM food chain probably prevents that number from being more significant.
 

TBiddy

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Apparantly Microsoft crossed 15 billion USD in gaming revenue in a year (last 12 months, not FY), for the first time ever.
On the one hand, 12% isn't a great showing for Surface as industry demand will let you sell just about anything at this point. On the other hand, supply constraints and Microsoft's place in the OEM food chain probably prevents that number from being more significant.

I think people are slowly realising that the Surfaces look amazing, but they are in reality some of the worst laptops in the market.
 
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reksveks

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What is waas Is it like a subscription os or something?
https://www.techrepublic.com/articl...-windows-10-desktop-as-a-service-this-summer/ imagine a thin client with that you can remote into the hardware sku that you need.
On the one hand, 12% isn't a great showing for Surface as industry demand will let you sell just about anything at this point. On the other hand, supply constraints and Microsoft's place in the OEM food chain probably prevents that number from being more significant.
Any numbers from the Lenovo/dell businesses also remember that Surface hasn't really had any updates for the last 5 months.
 

ChuckeRearmed

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Decent numbers for Xbox, especially considering huge exclusives such as Starfield, Halo Infinite and FH5 are yet to hit.
It is really impressive considering the shortage (as a lot goes to Azure services anyway), cloud is not rolled out fully yet and no first party heavy hitters in sight.

https://www.techrepublic.com/articl...-windows-10-desktop-as-a-service-this-summer/ imagine a thin client with that you can remote into the hardware sku that you need.
Reminds me of what developers use in Facebook
 
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bender

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Apparantly Microsoft crossed 15 billion USD in gaming revenue in a year (last 12 months, not FY), for the first time ever.


I think people are slowly realising that the Surfaces look amazing, but they are in reality some of the worst laptops in the market.

In this environment, quality doesn't really doesn't matter, availability does. Traditional laptops taking 6+ months to manufacturer, Chrome Device can nearly double that. IC supply is FUBAR and will be until mid-2022. Things will not return to normal until 2023 at the earliest.

Any numbers from the Lenovo/dell businesses also remember that Surface hasn't really had any updates for the last 5 months.

I don't work with Dell or Lenovo but I'm sure there numbers look good despite price hikes due to subcomponent manufacturers. All the OEMs are able to sell everything they are producing. Demand is far outpacing supply.
 
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Banjo64

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Dec 8, 2020
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-Its year over year so xbox series S/X werent out hence the huge jump in revenue for hardware
-Again year over year and growth is 50 percent, not bad but not earth shattering either. Better than going down.
-Theres 0 context for what these percentage jumps mean.
Dabaus Dabaus eagerly waiting at his keyboard with his pre-typed diatribe as to why this is actually underwhelming news, which I’m sure he’ll also do for PlayStation (not).

 

ChuckeRearmed

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To give an idea of how YoY has been. 34% in q3 is far more than normal.
Whoa. So basically it is usually around 15% in that quarter? Will be interesting to compare with the future numbers but I think it is bigger in comparison to the previous set of numbers as the growth is happening relatively fast. I think next year it will be less than 34%