How Microsoft makes its money

I wrote about Microsoft's results last week but it is such a diverse behemoth that I thought I would share a few extra highlights from the latest release. Previously, I focused on the future of AI but I can assure you, their existing businesses are still in great shape. Take a look at how many parts there are to this company, in the image below.

Microsoft has gross margins of 71% and operating margins of 48%. From sales of $56.5 billion, they generated free cash flow of $20.7 billion. No wonder they wanted to buy Activison Blizzard, they have too much cash! That deal will make them the second-biggest gaming company on the planet.

Microsoft Teams has 320 million users and LinkedIn just passed a billion users.

This is how their cloud business grew over the last 9 quarters according to App Economy Insights: 48% ¿ 46% ¿ 49% ¿ 46% ¿ 42% ¿ 38% ¿ 31% ¿ 27% ¿ 28%.

It doesn't get much better than that.