Microsoft reported better-than-expected quarterly adjusted revenue for the ninth quarter in a row, boosted by high demand for its cloud products, although PC business still sags. "We are making strong progress across each of our three ambitions by delivering innovation people love," said Satya Nadella, chief executive officer at Microsoft. "Customer excitement for new devices, Windows 10, Office 365 and Azure is increasing as we bring together the best Microsoft experiences to empower people to achieve more."
Under Nadella, Microsoft has been shifting its focus to software and cloud services as demand for the Windows operating system slows in a weak PC market.
Revenue in Productivity and Business Processes declined 3% (up 4% in constant currency) to $6.3 billion, with the following business highlights:
- Office commercial products and cloud services revenue grew 5% in constant currency with Office 365 revenue growth of nearly 70% in constant currency and continued user growth across our productivity offerings
- Office 365 consumer subscribers increased to 18.2 million, with approximately 3 million subscribers added in the quarte
- Dynamics revenue grew 12% in constant currency, with the Dynamics CRM Online enterprise installed base growing more than 3x year-over-year
- Revenue in Intelligent Cloud grew 8% (up 14% in constant currency) to $5.9 billion, with the following business highlights:
- Server products and cloud services revenue grew 13% in constant currency, with revenue from premium products and services growing double-digits
- Azure revenue and compute usage more than doubled year-over-year
- Enterprise Mobility customers more than doubled year-over-year to over 20,000, and the installed base grew nearly 6x year-over-year
Revenue in More Personal Computing declined 17% (down 13% in constant currency) to $9.4 billion, with the following business highlights:
- Windows OEM revenue declined 6%, performing better than the overall PC market, as the Windows 10 launch helped drive hardware mix toward premium devices
- Phone revenue declined 54% in constant currency reflecting our updated strategy
- Search advertising revenue excluding traffic acquisition costs grew 29% in constant currency with Bing US market share benefiting from Windows 10 usage
- Xbox Live monthly active users grew 28% to 39 million