Microsoft Q4 Earnings: Dynamics CRM, Commercial Cloud bright spots

Microsoft has released its Q4 earnings and naturally, led with the bright spots. In particular, the Commercial cloud annualized revenue run rate now exceeds $8 billion.

Q4 revenues were $22.2 billion. Gross margin, operating loss, and loss per share for the quarter were $14.7 billion, $(2.1) billion, and $(0.40) per share, respectively.

These results include the impact of a $7.5 billion non-cash impairment charge related to the Nokia Devices and Services (NDS) business, plus a restructuring charge of $780 million. Still, during the quarter, Microsoft returned $6.7 billion to shareholders in the form of share repurchases and dividends.

Azure, Dynamics up double digits

CEO Satya Nadella observed that the company's investment in areas of differentiation and opportunity is paying off, with Azure and Dynamics CRM growing by double digits (alongside the Surface laptop, Xbox, Bing search engine and Office 365). Paid seats 

"Mainstreaming Dynamics into our engineering sales and marketing efforts gives us the ability to participate in this large and growing market in a more meaningful way," said Nadella in the Microsoft earnings call (transcript). "[T]otal paid seats for Dynamics CRM Online increased 140% year over year, and we have more than 8 million paid Dynamics seats across CRM and ERP in total, up 25% year over year. This creates a great foundation for future growth in our Dynamics business."

Nadella also noted the recent acquisition of FieldOne Systems, which adds field service capabilities build on top of Dynamics CRM.  

All told, said CFO Amy Hood, "We finished the fiscal year with solid ...