Microsoft Strong Year Buoyed by Surging Teams, Dynamics 365 Growth

Microsoft reported that daily Teams usage spiked 72% last quarter, nearing 250 million.

Jeffrey Schwartz

July 30, 2021

6 Slides

Nearly 250 million people now actively use Microsoft Teams, while Dynamics 365 accounts for 70 percent of Dynamics revenues. Microsoft emphasized the growth of Azure, Dynamics 365 and, notably Teams in its Q4 earnings release on Tuesday.

By reaching 250 million, the Teams user base has surged 72% since Microsoft reported 145 million users in April. Microsoft also disclosed in its latest earnings report that there are 80 million Teams Phone users.


Microsoft’s Satya Nadella

“Teams usage has never been higher,” chairman and CEO Satya Nadella said during the company’s earnings webcast with financial analysts. Microsoft Teams is the new front end. It’s where people meet, chat, call, collaborate and automate business processes – all within the flow of work.”

The 49% Dynamics 365 year-over-year increase for the fourth quarter of FY21, marks the third consecutive quarter of revenue growth. Earlier this month, Microsoft said it will offer integrated Teams capability in Dynamics 365 without an additional license fee.

Empowering Employees for Hybrid Growth

“We’re empowering employees for hybrid work by creating a new category of collaborative applications bringing business processes directly into the flow of work,” Nadella said. “New integrations between Dynamics 365 and Teams enable anyone in the organization to seamlessly view and collaborate on customer records within teams without having to purchase multiple licenses. Customers want this and no other vendor is doing this today.”

Microsoft Teams usage also is poised to rise later this year with the release of Windows 11. The new Windows release will include Teams, Microsoft said.

Overall, Microsoft’s earnings report, which included the full FY21, were strong, aside from weaknesses in its Windows and gaming businesses.

Click through the slideshow above for some highlights from the earnings report.


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About the Author(s)

Jeffrey Schwartz

Jeffrey Schwartz has covered the IT industry for nearly three decades, most recently as editor-in-chief of Redmond magazine and executive editor of Redmond Channel Partner. Prior to that, he held various editing and writing roles at CommunicationsWeek, InternetWeek and VARBusiness (now CRN) magazines, among other publications.

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