Cloud-based services drive Microsoft to record $24.1 billion in revenue in FY17 Q2

Last week, more specifically on 26th January, 2017, Microsoft released its earnings report for the quarter ended 31st December, 2016. According to the report, the Tech Company recording $24.1 billion in revenue. This was a slight increase of 1.69 percent compared to the same quarter a year previously where it reported $23.7 billion in revenue.

The report also indicates that Microsoft pulled $5.2 billion in net income against $5 billion from the same quarter a year previously. This represents an increase of 4 percent.

“Revenue was $24.1 billion GAAP, and $26.1 billion non-GAAP

Operating income was $6.2 billion GAAP, and $8.2 billion non-GAAP

Net income was $5.2 billion GAAP, and $6.5 billion non-GAAP

Diluted earnings per share was $0.66 GAAP, and $0.83 non-GAAP”

-Microsoft Press Release

Revenue in Productivity and Business Processes was $7.4 billion and increased 10 percent, with the following business highlights:

  • Office commercial products and cloud services revenue increased 5 percent driven by Office 365 commercial revenue growth of 47 percent.
  • Office consumer products and cloud services revenue increased 22 percent and Office 365 consumer subscribers increased to 9 million.
  • Dynamics products and cloud services revenue increased 7 percent driven by Dynamics 365 revenue growth.
  • LinkedIn contributed revenue of $228 million for the period beginning on 8th December, 2016. This is the date Microsoft completed acquisition of LinkedIn.

Revenue in Intelligent Cloud which encompasses Azure, enterprise services, server products and cloud services was up 8 percent to $6.9 billion.

Revenue in More Personal Computing was $11.8 billion representing a decrease of 5 percent. This was due to an 81 percent decrease in phone revenue and a 3 percent decrease in gaming revenue. Microsoft sold its feature phone business in November 2016.

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Both Windows OEM revenue and Windows commercial products and cloud services revenue increased by 5 percent. On the other hand, search advertising revenue increased 10 percent driven by increased revenue per search and search volume.

“I am pleased with our results this quarter. We see strong demand for our cloud-based services and are executing well on our long-term growth strategy.”

-Amy Hood, Executive VP and CFO at Microsoft

Mr. Felix
A Math Nerd and a Computer Geek. Currently a Windows 10 Insider. Interested in AI, big data and AR/VR. Takes a keen interest in developments in the tech, business and social media spheres.

Mr. Felix

A Math Nerd and a Computer Geek. Currently a Windows 10 Insider. Interested in AI, big data and AR/VR. Takes a keen interest in developments in the tech, business and social media spheres.

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