Post-COVID-19 Future Needs 'Flexibility,' Says Microsoft CEO
“There’s no return to January of 2020,” Microsoft CEO Satya Nadella told Tuesday's call for the quarter ended Dec. 31. Responding to a question on Microsoft’s expense profile post-COVID-19, Nadella focused on “flexibility” in time and where employees work because…
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“expectations have changed.” That’s an opportunity for Microsoft’s Teams business communication platform, he said: “Work happens before meetings, during meetings, after meetings, and especially in hybrid work, you need that sophisticated set of tools that really track workflow irrespective of who is where,” he said. On Xbox, Microsoft exceeded $5 billion in quarterly revenue, a first, as the Series X and S debut set a record for most devices sold in a launch month. Xbox Live has more than 100 million active monthly users and Game Pass has 18 million subscribers, he said. Xbox hardware revenue grew 86%, driven by the new console launch and lower prices on previous-generation consoles, said Chief Financial Officer Amy Hood. The stronger PC market resulted in overall OEM revenue growth of 1% despite a strong prior year comparable in OEM Pro due to the end of support for Windows 7, said Hood. OEM non-Pro revenue grew 24%, OEM Pro revenue dropped 9%, she said. Quarterly revenue grew 17% to $43.1 billion, said the company. Shares closed at $232.90 Wednesday after hitting a 52-week high of $240.44.