Strong results for Big Tech
Alphabet and Microsoft reported strong earnings and revenue for Q1, kicking off a big week for tech earnings as the industry starts to look ahead to the post-pandemic economy.
Google parent Alphabet Inc. announced record profits for a third straight quarter during the pandemic. The tech giant reported net income of $17.93 billion, compared with net income of $6.84 billion in the year-ago quarter.
Revenue after removing traffic-acquisition costs increased to $45.6 billion from $33.7 billion in the year-ago period, while overall revenue soared 34% to $55.3 billion.
Search was the big breadwinner, with $31.9 billion in sales, compared with $24.5 billion a year ago. YouTube ad sales jumped 49% year-over-year to reach $6 billion.
The most notable improvement however was recorded in the company’s cloud results. Google Cloud grew from $2.777 billion in revenue and an operating loss of $1.73 billion in the year-ago quarter to revenues of $4.047 billion and an operating loss of just $974 million.
Microsoft, on the other hand, met analysts’ sales expectations and beat profit estimates, even though there was some skepticism about one-off benefits included in the results.
Net income for the third quarter ended March 31 jumped 44% to $15.5 billion, while revenue reached $41.7 billion versus the estimated $41.03 billion.
Microsoft’s solid financial performance was driven by Office 365 and Azure cloud services revenue. The company’s cloud solutions generated $17.7 billion in commercial cloud revenue, up 33% YoY.
Microsoft reaches 1.3 billion Windows 10 users
Following its earnings call, Microsoft announced that it had added 300 million users in the last year. The software company that had celebrated surpassing 1 billion users in March 2020, revealed that it reached a new all-time high of 1.3 billion users.
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