Skip to main content

Microsoft meets Q2 2019 revenue target as Azure growth rate stagnates

by MSDW Reporter
Editorial Team,

Microsoft reported its second quarter earnings with a 12% revenue gain and 18% gain in operating income from the year prior, with earnings per share of $1.08.

Revenue of $32.5 billion was on target with analyst estimates.

Productivity and Business Processes sector revenue was $10.1 billion and increased 13% year over year. Dynamics 365 revenue grew 51%, with Dynamics products and cloud services revenue overall up 17%. Other performance highlights in the sector included:

  • Office Commercial products and cloud services revenue increased 11% (up 11% in constant currency) driven by Office 365 Commercial revenue growth of 34% (up 33% in constant currency)
  • Office Consumer products and cloud services revenue increased 1% (up 2% in constant currency) with growth in Office 365 Consumer subscribers to 33.3 million
  • LinkedIn revenue increased 29% (up 30% in constant currency) with record levels of engagement highlighted by LinkedIn sessions growth of 30%

In FY2019 Q1, Microsoft reported Dynamics 365 revenue growth of 51%. In FY 2018 Q3, Dynamics revenue growth was 65%. In FY 2018 Q2 it was 67%.

Intelligent Cloud delivered revenue of  $9.4 billion, an increase of 20%. The ever-important Azure revenue growth rate remaining steady at 76%.

“Our strong commercial cloud results reflect our deep and growing partnerships with leading companies in every industry including retail, financial services, and healthcare,” said Satya Nadella, CEO of Microsoft in a statement.

The earnings call presentation also notes other details including:

  • Commercial revenue annuity mix is up a further 3 points to 89%
  • Operating expenses rose 7% year-over-year, driven by investments in cloud engineering and commercial sales capacity

FREE Membership Required to View Full Content:

Joining gives you free, unlimited access to news, analysis, white papers, case studies, product brochures, and more. You can also receive periodic email newsletters with the latest relevant articles and content updates.
Learn more about us here

About MSDW Reporter
More about MSDW Reporter