Microsoft Q4 2017 Earnings Release: Revenue beats expectations, Azure accelerates
Microsoft has released the following results for the quarter ended June 30, 2017:
- Revenue was $23.3 billion GAAP, and $24.7 billion non-GAAP
- Operating income was $5.3 billion GAAP, and $7.0 billion non-GAAP
- Net income was $6.5 billion GAAP, and $7.7 billion non-GAAP
- Diluted earnings per share was $0.83 GAAP, and $0.98 non-GAAP
That $24.7 billion revenue beat analyst expectations of $24.27 billion by $43 million.
Once again, CEO Satya Nadella credits the cloud. (He did so in both Q2 and Q3 2017, but credited satisfying Q1 results to digital transformation - largely in the cloud. This time he says "Customers are looking to Microsoft and our thriving partner ecosystem to accelerate their own digital transformations and to unlock new opportunity in this era of intelligent cloud and intelligent edge."
Revenue in Productivity and Business Processes was $8.4 billion and increased 21% (up 23% in constant currency), with the following business highlights:
- Dynamics products and cloud services revenue increased 7% (up 9% in constant currency) driven by Dynamics 365 revenue growth of 74% (up 75% in constant currency).
- Nearly 2/3 of Dynamics 365 Finance and Operations Enterprise and AX seats sold were online in FY17;
- LinkedIn contributed revenue of $1.1 billion during the quarter;
- Office commercial products and cloud services revenue increased 5% (up 6% in constant currency) driven by Office 365 commercial revenue growth of 43% (up 44% in constant currency);
- Office consumer products and cloud services revenue increased 13% (up 13% in constant currency) and Office 365 consumer subscribers increased to 27.0 million.
Revenue in Intelligent Cloud was $7.4 billion and increased 11% (up 12% in constant currency), with the following business highlights:
Server products and cloud services revenue
increased 15% (...
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