Microsoft has posted a strong financial earnings report for the third quarter of 2019. The company has posted revenues of $30.6 billion, out of which its net income was $8.8 billion. This revenue figure has jumped more than 14 percent over last year’s figures and its total net income has increased by an impressive 19 percent. Microsoft Cloud and Microsoft Office continue to push the company’s revenue figures in the right direction, but its products such as the Xbox, Windows and Surface laptops lineup have managed to help Microsoft even further by posting some solid revenue numbers for Q3.
Microsoft did not any Surface laptops in Q3, but this has not managed to dampen the figures for the company’s hardware division as it has marked a strong quarter due to the busy holiday season. Microsoft’s Surface revenues have grown by 21 percent year over year, and it has grown by $1.3 billion which reflects strong market demand for Surface products. The company has recently revealed that the Surface Book 2 and the Surface Go product helped to push the sales in the first quarter.
Microsoft’s Xbox division has continued to be the major highlight of the company’s profits and earnings. Its gaming revenues have jumped by 5 percent in the third quarter, and the Xbox software made up for the slow Xbox hardware sales in this quarter.
The company has still not released a date to launch its new game streaming service, which is dubbed as the xCloud. This has come off the back of Google who has unveiled its own Stadia game streaming service. Microsoft has recently demonstrated its xCloud game streaming service publicly for the first time, and the company is promising trial runs of this service in the latter part of 2019. Phil Spencer, who is the boss for Microsoft’s gaming division, has stated that the company will “go big” for the E3 event.
While its Windows lineup has posted negative revenue figures during the holiday season quarter, it made up for that by posting better than expected figures due to higher demand for PCs. This means that businesses around the US have been upgrading their computing machines in the recent quarter. This might also be the case because Microsoft will be ending support for its Windows 7 product after January 2020.
The revenue figures for Windows OEM Pro has jumped by 15 percent. Microsoft also stated that due to improved chip supply, the company managed to ship more commercial PC products. The company stated that it has started to notify its Windows 7 users that this operating system will not have any support available after January 14th, 2020.
The company’s consumer offerings have continued to grow in this quarter, but its Office and cloud services are the ones that are witnessing big growth. The revenue for Microsoft Office products and cloud services have increased by 12 percent year over year, and the company now boasts more than 180 million active monthly users for its Office 365 business service. There are also 34.2 million people who are subscribed to Microsoft’s Office 365 service for consumers. The CEO of Microsoft also stated that its Outlook email service has more than 100 million users on the iOS and Android platform.