Earnings Highlights from Microsoft and Amazon
Microsoft: “As COVID-19 impacts every aspect of our work and life, we’ve seen two years’ worth of digital transformation in two months“
- Beat expectations on revenue ($35B) and profit ($10.75B)
- 75M daily active users on Teams
- 59% growth in Azure revenue
- 10M subscribers to Xbox Game Pass
- Slowdown in sales to SMBs and industries impacted by COVID, consulting projects, and advertising spend
Amazon: “If you’re a share owner in Amazon, you may want to take a seat, because we’re not thinking small”
- Beat expectations on revenue ($75.5B); fell short on profit ($2.5B)
- Expects to spend $4B next quarter on COVID-related expenses
- Increased grocery delivery by 60% but still not meeting demand
- AWS revenue grew to $10.2B, lower than expectations because of less spend from travel and hospitality customers