Table of Contents
Key Stats
Microsoft Corporation is a multinational technology company originating in the United States, best known for developing Windows operating system, but it sells a wide array of consumer and enterprise-grade services, software, hardware, services, and consumer electronics.
| Founded | Bill Gates and Paul Allen in Albuquerque, New Mexico, April 4, 1975 |
| CEO | Satya Nadella |
| Headquarters | Redmond, Washington, United States |
| Website | microsoft.com |
| Employees | 181,000 (2021) |
| Annual revenue | $168.09 billion; 50% from the US (2021) |
| Gross profit | $115.86 billion (2021) |
| Operating income | $69.92 billion (2021) |
| Net income | $61.27 billion (2021) |
| Net worth | $2.15 trillion (2022) |
| LinkedIn revenue | $10.29 billion (2021) |
Finances
Annual Revenue
In 2021, Microsoft Corporation generated global annual revenue of 168.09 billion U.S. dollars, up 17.5% from 143.02 billion dollars in 2020. The multinational technology corporation company that developed the popular operating system Windows has continued to generate a steady growth of global annual revenue throughout recent years.
| Year | Annual Revenue |
|---|---|
| 2009 | $58.44 billion |
| 2010 | $62.48 billion |
| 2011 | $69.94 billion |
| 2012 | $73.72 billion |
| 2013 | $77.85 billion |
| 2014 | $86.83 billion |
| 2015 | $93.58 billion |
| 2016 | $91.15 billion |
| 2017 | $96.57 billion |
| 2018 | $110.36 billion |
| 2019 | $125.84 billion |
| 2020 | $143.02 billion |
| 2021 | $168.09 billion |
Gross profit
As of 2021, Microsoft’s gross profit amounted to around $115.86 billion, up 19.52% from $96.94 billion in 2020. Gross profit is a financial metric that takes the difference between a company’s revenue and its cost of goods sold expressed in billions of dollars.
| Year | Gross Profit |
|---|---|
| 2009 | $46.28 billion |
| 2010 | $50.09 billion |
| 2011 | $54.37 billion |
| 2012 | $56.19 billion |
| 2013 | $57.46 billion |
| 2014 | $59.76 billion |
| 2015 | $60.54 billion |
| 2016 | $58.37 billion |
| 2017 | $62.31 billion |
| 2018 | $72.01 billion |
| 2019 | $82.93 billion |
| 2020 | $96.94 billion |
| 2021 | $115.86 billion |
Operating income
Microsoft reported an operating income of 69.92 billion U.S. dollars in its 2021 fiscal year, the highest operating income to date. This is a 32% increase from $52.96 billion in 2020.
Net income
In 2021, Microsoft Corporation generated a net income of $61.27 billion, up 38.37% from $44.28 billion in 2020. Microsoft’s net income has fluctuated over the years but has steadily increased by 320.56% since 2009.
| Year | Net income |
|---|---|
| 2009 | $14.57 billion |
| 2010 | $18.76 billion |
| 2011 | $23.15 billion |
| 2012 | $16.98 billion |
| 2013 | $21.86 billion |
| 2014 | $22.07 billion |
| 2015 | $12.19 billion |
| 2016 | $20.54 billion |
| 2017 | $25.49 billion |
| 2018 | $16.57 billion |
| 2019 | $39.24 billion |
| 2020 | $44.28 billion |
| 2021 | $61.27 billion |
Net worth
Microsoft has a net worth of $2.15 trillion in 2022, down 18% from its all-time high of $2.575 trillion on November 15, 2021. Microsoft’s net worth has increased by 10x from 2010 when it was $210 billion and is expected to reach $2.7 trillion by the end of 2022, according to Photutorial’s prediction.
Windows revenue
Microsoft generated $23.23 billion in revenue from Windows in 2021, a 4.18% increase from $22.29 billion in 2020. Sales of commercial Windows products and cloud services increased by 14%, and sales of Windows OEM licenses (“Windows OEM”) increased only slightly.
LinkedIn revenue
Microsoft generated $10.29 billion in revenue from LinkedIn in 2021, a 27.39% increase from $8.08 billion in 2020. The revenue increase was driven by increased advertising demand in their Marketing Solutions business.
Other revenue stats
- Commercial and cloud services revenue increased by $4.0 billion, or 13%. Office 365 commercial revenue increased 22%, driven by a 17% increase in licenses and higher revenue per user. Office commercial revenue declined 23% as customers continue to move to cloud offerings and transactional business weakens.
- Consumer Office products and cloud services revenue increased $474 million, or 10%, driven by consumer Microsoft 365 subscription revenue, which built on a strong prior-year performance that benefited from transaction strength in Japan. Consumer Microsoft 365 subscriptions increased 22% to 51.9 million.
- Revenue from Office products and cloud services for consumers increased by 10%, and the number of Microsoft 365 subscribers for consumers increased to 51.9 million.
- Dynamics products and cloud services revenue increased 25%, driven by a 43% increase in Dynamics 365 revenue.
- Server products and cloud services revenue increased 27%, driven by a 50% increase in Azure.
- Xbox content and services revenue increased 23%.
- Search advertising revenue increased 13%, excluding traffic acquisition costs.
- Surface revenue increased by 5%.
How Many Employees Does Microsoft Have?
As of the latest reports, Microsoft has 181,000 employees on a full-time basis. Around 57% (103,000) of Microsoft’s employees are located in the United States and 33% (78,000) elsewhere.
Of the total number of employees, 67,000 (37.0%) are in operations (manufacturing, distribution, product support, consulting services), 60,000 (33.1%) in product research, 40,000 (22.1%) in sales and marketing, and 14,000 (7.7%) in administration.
Frequently Asked Questions
What percentage of the world uses Microsoft?
75.7% of desktops use Windows operating system, 15.3% macOS, 2.7% Linux, and 6.3% other worldwide. In the US, 60.9% of desktops use Windows operating system.
Who is Microsoft’s biggest competitor?
Microsoft’s (MSFT) biggest competitors include well-known technology brands, such as Apple (AAPL), Google (GOOG), IBM (IBM), and Oracle (ORCL).
Source: Microsoft Sec Filings
