Today, Microsoft released its Q3 2020 earnings report, which is the quarter ending on March 31, 2020. The company made a total of $35 billion in revenue, a 15% (16% in constant currency) growth over the same quarter last year. Operating income was $13B, a 25% (28% CC) increase year-over-year, and net income was $10.8B, a 22% (26% CC) increase.
That $35B is broken up into three businesses, the biggest of which is Intelligent Cloud with $12.3B in revenue, a 27% (29% CC) increase YoY. The second biggest is Productivity and Business Processes with $11.7B in revenue for 15% (16% CC) growth. Interestingly, More Personal Computing is the smallest bucket with $11B, with 3% (4% CC) growth year-over-year.
In the Productivity and Business Processes department, there are now 39.6 million Office 365 consumer subscribers, while Office 365 commercial seats grew by 20% year-over-year, up to almost 258 million seats. Revenue for Office 365 commercial grew 25% (27% CC), and the total Office commercial products and cloud services revenue grew by 13% (15% CC), thanks to a 21% (20% CC) decline in Office commercial products. On the consumer end, Office products and cloud services revenue grew by 15% (17% CC), thanks to subscription revenue and Office 2019 sales in Japan.
Also in that bucket is LinkedIn revenue, which grew by 21% (22% CC). Sessions also grew by 26%. Dynamics products and cloud services revenue increased by 17% (20% CC), and that’s driven by Dynamics 365, which increased by 47% (49% CC).
In the Intelligent Cloud department, server products and cloud services increased by 30% (32% CC), and that’s driven by Azure’s increase in revenue by 59% (61% CC). Server products only grew by 11% (12% CC), thanks to the Windows Server 2008 end of support. The Enterprise Mobility install base is now over 134 million with a 34% growth.
Finally, More Personal Computing is mostly flat. Windows OEM Pro revenue grew by 5%, driven by remote work demand, but OEM non-Pro revenue declined by 10% thanks to supply chain constraints in China and pressure in the entry-level segment (Chrome OS). Windows commercial products and cloud services grew by 17% (18% CC).
Surface revenue is up by 1% (2% CC), thanks to remote work demands, but still offset by supply chain issues in China. Gaming revenue declined by 1%, although Xbox content and services is up by 2% thanks to stay-at-home guidelines. Finally, search advertising revenue is up by 1%, excluding customer acquisition costs.