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Microsoft Q1 2015 results: Record revenue, including 128% gain in Commercial cloud

by Jason Gumpert
Editor, MSDynamicsWorld.com

Microsoft reported of a 13% dip in its 2015 fiscal year first quarter earnings compared to the previous year. But the $0.54 per share beat analyst expectations by $0.05. Revenue for the quarter was $23.2 billion, up 25% from the same time last year, which also beat expectations by $1.18 billion.

Microsoft FY2015 Q1 Commercial performance
Microsoft FY2015 Q1 Commercial performance 

Commercial revenue, which includes Microsoft Business Solutions, was up 10% to $12.28 billion. Gross margin grew 9% to $9.91 billion, "benefitting from increased scale and engineering efficiencies in cloud services," according to the earnings presentation. 

In its earnings press release, the company notes that Dynamics CRM cloud revenue contributed to a 128% growth in "Commercial Cloud" revenue, along with Office 365 and Azure.

Other Commercial performance highlights reported by the company included:

  • Server products and services revenue increased 13%, with double-digit growth for SQL Server, System Center and Windows Server.
  • Office Commercial products and services revenue grew 5% as customers transition to Office 365.
  • Lync, SharePoint and Exchange, our productivity server offerings, collectively grew double-digits.
  • Windows volume licensing revenue increased 10%.

There was more detail on Microsoft DYnamics performance shared by MBS president Kirill Tatarinov earlier this week when he met with industry analysts at the Fall Analyst Event. There he reported several other select FY14 metrics:

  • Dynamics products saw 13% revenue growth last quarter.
  • Dynamics added 1 million new users in FY14
  • 80% of net seat adds for Dynamics CRM are going to CRM Online
  • Dynamics AX saw 21% license growth
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About Jason Gumpert

As the editor of MSDynamicsWorld.com, Jason oversees all editorial content on the site and at our events, as well as providing site management and strategy. He can be reached at jgumpert@msdynamicsworld.com.

Prior to co-founding MSDynamicsWorld.com, Jason was a Principal Software Consultant at Parametric Technology Corporation (PTC), where he implemented solutions, trained customers, managed software development, and spent some time in the pre-sales engineering organization. He has also held consulting positions at CSC Consulting and Monitor Group.

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