Google posted a strong quarter this past week the company is reporting revenue of $38.9 billion, up 19 percent year-over-year. Microsoft reported revenue of $33.7 billion, net income of $12.4 billion, and an operating income of $12.4 billion.
Google profits hit $9.9 billion, up 201 percent over a year ago. Google went on to say on their earnings call that the launch of Pixel 3A in May, there much cheaper of the flagship Pixel phone series is part of the reason Pixel unit sales in Q2 grew more than two times from the previous year.
Googles hardware division which is boosting revenues up 40 percent to $6.2 billion. Which covers all of the Googles outward-facing consumer services is bigger than Microsoft entire Surface hardware business as Microsoft Surface revenue has grown by 14%, totaling $1.3 billion. Microsoft does not release Xbox numbers often, but my guess is Microsoft entire hardware business of Surface and Xbox do not even come close to Googles entire consumer market share even with Xbox live.
Google’s Cloud generated revenues of about $2 billion in the quarter, a far cry from the $8.4 billion that Amazon AWS generated and Microsoft $11 billion in the same time period. Google is a distant number three after AWS and Microsoft Azure in the cloud market.
Google did not mention any more Gsuite subscription numbers they are still reporting 5 million paying users and 70 million G Suite for Education users. I would like to point out Google or Microsoft for education customers do not pay. Microsoft is boasting 180 million active Office 365 users and 1.2 billion people paying for some form of Office365 service.
Microsoft Office Commercial products and cloud services revenue increased by 14%, with Office 365 Commercial revenue growing by 31%. Office Consumer products and cloud services grew by 6%, with Office 365 Consumer subscribers growing to 34.8 million. LinkedIn also saw a strong growth of 25% in revenue, and Dynamics 365 revenue grew by 45%.
Google’s revenues from advertising were $32.6 billion, or 81 percent of its total revenues while Microsoft’s Search advertising business saw an increase of 9% in revenue which most estimate is about is less than $180 million in revenue. What this shows is the second-largest player is Search trails way behind Google in revenue. But in Microsoft defense, it’s not their primary business-like Google. Steller quarter for both Microsoft and Google both companies are doing great in their own ways.