The Banking Executive - Decemebr 2021, Issue 156

ISSUE 156 DECEMBER 2021 the BANKING EXECUTIVE 27 a new assessment extended the use- ful life of its servers and networking gear by a year or more. Google’s lead over the global inter--net advertising market is shrinking as Amazon becomes a big- ger threat and China-focused ven- dors such as Alibaba enjoy a faster rebound from the pandemic. Last week, research company eMarketer estimated Google will capture 30% of the market in 2021 while increas- ing sales by 18% to $117 billion. MICROSOFT CORPORATION • Revenue (TTM): $138.7 billion • Net Income (TTM): $46.3 billion • Market Cap: $1.4 trillion • 1-Year Trailing Total Return: 45.5%2 • Exchange: Nasdaq In FY2020, Microsoft generated 143 billion U.S. dollars in revenue, a record year in terms of revenue for the company. As for other tech companies, for Mi- crosoft as well, it was a challenging year. The company reported total net revenue of $43.08 billion for the quarter ended Dec. 31, 2020, up 17% from $36.91 billion in the prior- year period. SPG Global research reveals that Mi- crosoft's intelligent cloud segment revenue grew 23% year over year by reaching to $14.60 billion, with server products and cloud services revenue up 26%, driven by Azure cloud revenue growth of 50%. Also, Microsoft's CFO Amy Hood men- tioned that the company saw funda- mental Azure revenue growth in the quarter as well as some reaccelera- tion of growth curves, particularly in industries that had been hit harder in the previous two quarters. Revenue in the more personal computing seg- ment was up 14% to $15.12 billion, with Xbox content and services rev- enue growing 40%. Hood also said that total gaming revenue increased 51% in the quarter, driven by record engagement and monetization as well as demand for the new Xbox Se- ries X and Series S video game con- soles that "significantly exceeded supply." Microsoft surpassed $5 bil- lion in gaming revenue and $2 bil- lion in revenue from third-party titles for the first time. Moreover, within the more personal computing segment, Windows OEM revenue increased 1% and Windows commercial products and cloud serv- ices revenue increased 10%. Search advertising revenue excluding traffic acquisition costs increased 2%, while surface revenue was up 3%. Meanwhile, revenue in productivity and business processes grew 13% year over year to $13.35 billion, with office products and cloud services revenue up 11% on the commercial side and up 7% on the consumer side. LinkedIn revenue increased 23%, while dynamics products and cloud services revenue were up 39%.