Microsoft Cloud strength highlights third quarter results

1 min read

The FINANCIAL — Microsoft Corp. on April 27 announced the following results for the quarter ended March 31, 2017:

Revenue was $22.1 billion GAAP, and $23.6 billion non-GAAP

Operating income was $5.6 billion GAAP, and $7.1 billion non-GAAP

Net income was $4.8 billion GAAP, and $5.7 billion non-GAAP

Diluted earnings per share was $0.61 GAAP, and $0.73 non-GAAP

“Our results this quarter reflect the trust customers are placing in the Microsoft Cloud,” said Satya Nadella, chief executive officer at Microsoft. “From large multi-nationals to small and medium businesses to non-profits all over the world, organizations are using Microsoft’s cloud platforms to power their digital transformation.”

 

“Strong execution and demand for our cloud-based services drove our commercial cloud annualized revenue run rate to more than $15.2 billion,” said Amy Hood, executive vice president and chief financial officer at Microsoft.

Revenue in Productivity and Business Processes was $8.0 billion and increased 22% (up 23% in constant currency), with the following business highlights:

Office commercial products and cloud services revenue increased 7% (up 8% in constant currency) driven by Office 365 commercial revenue growth of 45% (up 45% in constant currency)

Office consumer products and cloud services revenue increased 15% (up 14% in constant currency) and Office 365 consumer subscribers increased to 26.2 million

Dynamics products and cloud services revenue increased 10% (up 11% in constant currency) driven by Dynamics 365 revenue growth of 81% (up 82% in constant currency)

LinkedIn contributed revenue of $975 million

Revenue in Intelligent Cloud was $6.8 billion and increased 11% (up 12% in constant currency), with the following business highlights:

See also  Flip the switch

Server products and cloud services revenue increased 15% (up 16% in constant currency) driven by Azure revenue growth of 93% (up 94% in constant currency)

Enterprise Services revenue decreased 1% (unchanged in constant currency) with declines in custom support agreements offset by growth in Premier Support Services and consulting

Revenue in More Personal Computing was $8.8 billion and decreased 7% (down 7% in constant currency) driven primarily by lower phone revenue, with the following business highlights:

Windows OEM revenue increased 5% (up 5% in constant currency)

Windows commercial products and cloud services revenue increased 6% (up 6% in constant currency)

Surface revenue decreased 26% (down 25% in constant currency)

Search advertising revenue excluding traffic acquisition costs increased 8% (up 9% in constant currency)

Gaming revenue increased 4% (up 6% in constant currency)

 

Leave a Reply