Microsoft Q4 FY20 Earnings: Azure cloud services revenue grew 47%

July 22, 2020

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Microsoft today announced FY20 Q4 earnings results. Microsoft’s revenue in the last quarter was $38 billion and the operating income was $13.4 billion. Revenue in Intelligent Cloud business segment was $13.4 billion and it increased 17% when compared to last year. Azure cloud services revenue grew 47%, primarily driven by growth in consumption services.

Microsoft offered the following business highlights related to Intelligent Cloud business segment.

  • Server products and cloud services revenue increased 19% (up 21% in constant currency) driven by Azure revenue growth of 47% (up 50% in constant currency)
  • Enterprise Services revenue was relatively unchanged (up 2% in constant currency)
  • Microsoft mentioned that Enterprise Mobility installed base grew 26% to 147 million seats.

The gross margin dollars of this division grew 19%. The gross margin percentage increased because of material improvements in Azure gross margin offset by an increased mix of cloud offerings.

Source: Microsoft

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