Microsoft Corporation

April 15th, 2022 Innovative Companies

Innovation World Large Caps

April 2022

Microsoft Corporation is a technology company headquartered in Redmond, Washington. The company develops, licenses, and supports a range of software products, services, and devices. For example, it offers software for operating systems, server applications, business, and consumer applications, development tools, and Internet and intranet software.

Among other things, Microsoft also develops video game consoles and digital music entertainment devices.

Focus on Innovation

The innovation focus is on the latest digital technologies such as machine learning, the Internet of Things, and artificial intelligence in conjunction with cloud computing. At the same time, Microsoft is leaning on the megatrend of digitization in its innovation efforts. The SMART Health Card is among the latest technologies developed by Microsoft researchers and global partners. It is an electronic version of a medical record. This allows individuals to own and share their health data digitally, passing on the information in a cryptographically verified way.

FINANCIAL RESULTS FOR THE FISCAL YEAR 2021

Software provider Microsoft presents strong results for the fiscal year 2021. For the first time, LinkedIn as well as their security business exceeded the $10 billion annual revenue mark. In total, the company posted revenue of $168 billion for fiscal 2021, an 18 percent increase over the previous year. In particular, the Intelligent Cloud business, driven by the Azure cloud computing platform, contributed to this success with +24% revenue growth, or $11.7 billion. However, revenue also increased in the Productivity and Business Operations business segments by $7.5 billion, or + 16%, and in the More Personal Computing segment by $5.8 billion, or + 12%.

With the growth in sales, operating profit also increased by 32 percent to 70 billion US dollars. Net income even increased by + 38 percent to 61.2 billion US dollars. Cash from operations increased by $16.1 billion year-on-year to $76.7 billion, mainly due to increased cash received from customers. Given the acquisition of businesses, cash used in investing activities increased by $15.4 billion to $27.6 billion in FY 2021. As of June 30, 2021, cash, cash equivalents, and short-term investments totaled $130.3 billion.

Satya Nadella, Chairman and Chief Executive Officer, said: “Our growth mindset has served us well over the past year, which has been one of crisis, upheaval, and change. Our industry is dynamic and competitive, with frequent changes in both technologies and business models. Every change in the industry is an opportunity to develop new products, new technologies, or new ideas that can further transform the industry and our business.”

Every month ALPORA presents an ALPORA Top Innovator for each innovation fund. For each company, a detailed innovation analysis was carried out based on the ALPORA-Methods and the resulting innovation efficiency score was determined.