Power Platform now a $2 billion business, but Microsoft tempers Dynamics growth guidance
Power Platform is now a $2 billion annual business, Microsoft confirmed yesterday, with revenue up 72 percent year over year.
But that good news was tempered in the Microsoft Business Applications segment with an acknowledgement that Dynamics 365 revenue growth did not meet expectations in Q3 2022.
Dynamics 365 is growing faster than the business applications market overall, Microsoft CFO Amy Hood said, but its 35 percent revenue growth was “a bit lower than expected as we focus on stronger execution on our recent investments.” By contrast, other areas of the Productivity and Business Processes segment fared well including “[b]etter than expected results across Office 365, LinkedIn, and Office consumer.”
In the next quarter, Microsoft forecasts Dynamics revenue growth similar to Q3.
Even with the big revenue number for Power Platform, growth of 72 percent stands in contrast to related performance details shared in recent quarters. For example, Microsoft reported 161% growth for Power Apps in Q2 2022 and 202% revenue growth for Power Apps in Q1 2022. They did not share a specific Power Apps number for Q3.
Power BI now has more than 200,000 customers, Nadella stated. Microsoft has previously noted that the Business Applications group overall has more than 500,000 customers.
And within the Power Platform discussion on Microsoft’s earnings call, CEO Satya Nadella also mentioned the Minit acquisition, a process mining technology deal that the company announced in March, though he did not specifically explain any plans related to ...
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