The above graph represents Microsoft quarterly revenue by type – Product, and Service and Other. In fiscal Q2 2020, approximately 50.5% of Microsoft’s global revenue in fiscal Q2 2020 came from its services and other businesses. Microsoft Service and other revenue increased 14.8% YoY in FY Q2 2020, to a record high $18,651 million. Meanwhile, Microsoft products revenue also reached an all-time high of $18,255 million, with an impressive 12.6% YoY increase.
In fiscal Q2 2019 (Q4 2018), Microsoft’s services and other revenue surpassed its products revenue.
Microsoft Products and Services Revenue: History
|Source||Microsoft Quarterly reports, SEC Filings|
|Note||Microsoft financial year – from July 1 to June 30|
Microsoft products revenue declined a notable 8.85% YoY in FY Q1 2020, to $15,768 million. While the Microsoft revenue from services and others reached a record-high $17,287 million during FY Q1 2020, with a whopping 46.7% YoY increase.
Interestingly, Microsoft Products revenue reached an all-time high in FY Q2 2017, amounting to $18,273 million. However, the products revenue declined a massive 20.6% in the following quarter, totalled $14,513 million.
As the graph shows, Microsoft has been posting significant year-over-year growth in its service and other revenue since fiscal 2017. In fiscal Q1 2018, the company reported its highest-ever 47% YoY growth in services revenue, bringing in $10,240 million.
About Microsoft Corporation
Microsoft Corporation (NASDAQ: MSFT) is an American multinational technology company, founded by Bill Gates and Paul Allen on April 4, 1975. The company is best known for its software products such as Microsoft Windows OSs, Microsoft Office Suite, and web browsers such as Internet Explorer and Microsoft Edge.
Microsoft rose to dominate the personal computer operating system market during the 1980-81 when it formed a partnership with IBM to provide MS-DOS (Microsoft Disk Operating System) for IBM PCs. This implied that for every computer sold by IBM having Microsoft’s OS, a royalty was paid to Microsoft.
On November 20, 1985, Microsoft launched Windows – a graphical operating environment that runs on MS-DOS.
On March 13, 1986, Microsoft had a highly successful initial public offering (IPO) for $21 per share. By the end of the day, the stock price had risen to $35.50, which made Bill Gates an instant multi-millionaire, with 44.8% of the company’s stock.
On May 22, 1990, Microsoft launched Windows 3.0. Interestingly, Microsoft’s Windows 3.0 became the first widely successful version of Windows, from the very first day.
Microsoft has made ten acquisitions worth over one billion dollars: Skype (2011), aQuantive (2007), Fast Search & Transfer (2008), Navision (2002), Visio Corporation (2000), Yammer (2012), Nokia’s mobile and devices division (2013), Mojang (2014), LinkedIn (2016) and GitHub (2018).
Microsoft recently overtook Apple to become the world’s most valuable company, clocking $1 trillion valuation.
Here are some more interesting facts about Microsoft.
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