Microsoft has released it earnings report for the quarter ending March 31 2017 and it showed that revenue stood at $23.6b (non-GAAP) and $7.1b in net income compared to a revenue of $22.1b and net income of $5b in the same period last year.
According to the software giant,
- Revenue was $22.1 billion GAAP, and $23.6 billion non-GAAP
- Operating income was $5.6 billion GAAP, and $7.1 billion non-GAAP
- Net income was $4.8 billion GAAP, and $5.7 billion non-GAAP
- Diluted earnings per share was $0.61 GAAP, and $0.73 non-GAAP
CEO Satya Nadella said “Our results this quarter reflect the trust customers are placing in the Microsoft Cloud. “From large multi-nationals to small and medium businesses to non-profits all over the world, organizations are using Microsoft’s cloud platforms to power their digital transformation.”
Revenue in More Personal Computing was $8.8 billion and decreased 7% (down 7% in constant currency) driven primarily by lower phone revenue, with the following business highlights:
- Windows OEM revenue increased 5% (up 5% in constant currency)
- Windows commercial products and cloud services revenue increased 6% (up 6% in constant currency)
- Surface revenue decreased 26% (down 25% in constant currency)
- Search advertising revenue excluding traffic acquisition costs increased 8% (up 9% in constant currency)
- Gaming revenue increased 4% (up 6% in constant currency)
That said, Microsoft’s intelligent cloud business (enterprise services and other server products) is one of its biggest growth drivers. Revenue from this unit hit $6.8b which was driven by 93 percent year on year growth of Azure.
Revenue from Surface was down 26 percent year on year while new family member LinkedIn raked in $975m to the productivity business unit revenue. Revenue in Productivity and Business Processes was $8.0 billion and increased 22% (up 23% in constant currency).
Microsoft’s Personal Computing unit comprising of Windows OEM, Surface and gaming was down overall 7 percent. This could be a direct result of the overall PC market which had a gloomy 2016 in particular.