In the 1990s, the Internet began to spread to ordinary households. Many people may remember the impressive sight of long lines of people waiting in stores to purchase Microsoft's groundbreaking software, Windows 95.
Now, in 2021, more than 30 years after Windows 95, technology has dramatically evolved thanks to corporate innovation, and Microsoft is now the second largest company in the world by market capitalization, after Apple.
On April 27, 2021, Microsoft announced its financial results for the third quarter of fiscal year 2021, which ends on March 31, 2021. Revenue was $41.7 billion, up 19% year-over-year; operating income was $17 billion, up 31% year-over-year; and net income was $15.5 billion GAAP* and $14.8 billion non-GAAP, up 44% and 38% year-over-year, respectively. Let's examine the reasons for this increase in revenue.
First of all, the cloud platform Azure grew by 50%. This is due to continued demand from increased remote work due to the impact of the new coronavirus, and is evidence that people are satisfied with the value the company is providing.
Secondly, Microsoft Teams also performed well. Daily active users (DAUs) increased by about 30 million, from 115 million in October 2020 to 145 million this quarter. This is due to the increased need for remote work due to the impact of the new coronavirus. In the future, the acquisition of Slack will make the chat function more convenient and is expected to attract even more users, resulting in continued growth.
Another factor is the increase in advertising revenue from Linkedin, which is a business-oriented social networking service used by more than 700 million users worldwide. The increase in the number of people using Linkedin to change jobs in Corona disaster has led to a 25% increase in advertising revenue on Linkedin to $3 billion in the past 12 months.
Finally, there is the gaming-related business. Our gaming-related revenue also grew significantly, up 50%. In particular, Xbox Series X|S, which was released at the end of 2020, continues to be in demand, and Xbox hardware sales grew a significant 232% year over year. Xbox content and services also grew strongly, up 34%, driven by third party titles as well as Xbox Game Pass subscriptions and first party titles.
The growth results for the third quarter of fiscal 2021 primarily consisted of the above factors. Since Microsoft is one of the most evenly profitable companies in GAFA, there are concerns about the global semiconductor shortage, but if the metaverse, including VR and AR, is deployed, we can expect continued growth in the future.