Microsoft Dynamics passes $5 billion in revenue: New Business Apps performance data

Microsoft reported a "solid close" to its fiscal year earlier this week, including continued Business Applications growth in Q4, with Dynamics 365 revenue growth continuing to growth faster than the broader Dynamics product line.

In their earnings call, Microsoft CEO Satya Nadella and CFO Amy Hood voiced enthusiasm for the continued deployment of AI offerings and the uptake of new offerings like Teams Premium. They also provided new details on the performance of Microsoft Dynamics and Power Platform.

Dynamics revenue grew 19%, driven by Dynamics 365, which grew 26% in Q4, and Hood noted "continued healthy growth across all workloads." The company is forecasting revenue growth in the mid to high-teens driven by continued growth in Dynamics 365.

Dynamics has surpassed $5 billion in revenue over the past fiscal year, "with our customer experience, service, and finance & supply chain businesses all surpassing $1 billion in annual sales," Hood told analysts.

She also shared the following details on Power Platform growth:

• More than 63,000 organizations have used AI-powered capabilities in Power Platform, up 75% quarter-over-quarter.
• Power Automate now has 10 million monthly active users, up 55% year-over-year.

Other details shared by Microsoft included:

• Hundreds of organizations are using Nuance DAX (Dragon Ambient eXperience) ambient intelligence solution to automatically document patient encounters at the point of care.
• Over 8,000 customers have signed up to trial Microsoft Fabric and are actively using it. And over 50% are using four or more workloads.

Microsoft still has many Copilot plans awaiting GA releases and pricing, including for Power Platform and Dynamics 365. Nadella promised that analysts should consider the pull-through impact Microsoft expects from copilot offerings:

[T]he platform effect here is really all about the extensibility of the copilots. You see that today when people build applications in Teams that are built on Power Apps, and those Power Apps happen to use something like SQL DB on Azure. That’s like a classic line of business extension. You’ll see the same thing. When I have a copilot plug in, that plug in uses Azure AI, Azure meters, Azure data sources, Azure Semantic Search. You’ll see, obviously, a pull through not only on the identity or security layer, but in the core PaaS services of Azure plus the copilot extensibility in M365.