Microsoft’s 2020 final quarter profits hit $15.5 billion, increasing by around a third compared to the previous year amid a surge in demand for cloud-based services during the pandemic.

The software giant saw revenue jump by 17 per cent to $43.1 billion in the same period.

The company said its cloud strength had driven the boost to profits, no doubt triggered by the influx of people relying on digital services as they shift to working from home.

“What we have witnessed over the past year is the dawn of a second wave of digital transformation sweeping every company and every industry,” said Satya Nadella, chief executive officer of Microsoft. “Building their own digital capability is the new currency driving every organization’s resilience and growth.

He added: “Microsoft is powering this shift with the world’s largest and most comprehensive cloud platform.”

Amy Hood, executive vice president and chief financial officer at Microsoft, said: “Accelerating demand for our differentiated offerings drove commercial cloud revenue to $16.7 billion, up 34 per cent year over year. We continue to benefit from our investments in strategic, high-growth areas.”

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