As usual, the factor cited was growth in Dynamics 365 revenue, which was up 38 percent year-over-year, 37 percent in constant currency. “Growth in the number of customers adopting multiple Dynamics 365 workloads accelerated, reflecting,” Nadella said. Microsoft sometimes provides revenue numbers for Dynamics. This was not one of those times. Nadella gave a brief statement on guidance for Dynamics performance “though at a slightly lower rate than last quarter in line with historical seasonality in that business.” Dynamics operations fall under the Productivity and Business Processes, segment which had revenue of $12.32 billion for the most recently ended period, a 11-percent increase from $11.1 billion a year earlier. Microsoft said it benefited from the move to the cloud driven by the COVID-19 pandemic while its More Personal Computing segment, Surface and Gaming were helped by remote work, learning and playing. On the negative side, there were “adverse impacts to our supply chain, a slowdown in transactional licensing, and lower demand for our advertising services,” Microsoft said in its SEC filing for the period just ended. Net income jumped 32 percent to $13.89 billion for the first quarter, from $10.68 billion in last year’s corresponding period. Overall revenue reached $37.15 billion, up 11 percent from $32.06 billion a year earlier.
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DYNAMICS REVS RISE 19 PERCENT Featured
Dynamics revenue rose 19 percent for the first quarter ended September 30, Microsoft said this week. The segment was up 18 percent in constant currency, “better than expected,” CEO Satya Nadella said during an earnings webcast.