Today, Microsoft (Nasdaq “MSFT” @Microsoft) releases its fourth quarter earnings for fiscal year 2016 ending June 30, 2016. The results are:
Revenue $20.6 billion GAAP, and $22.6 billion non-GAAP
Net income of $3.1 billion GAAP, and $5.5 billion non-GAAP
Earnings per share was $0.69 non-GAAP, and $0.39 GAAP.
The software giant sees growing revenues from its productivity services including Office 365 and Dynamics CRM Online. Here are the highlights of the revenue:
- Office commercial products and cloud services revenue grew 5% (up 9% in constant currency) driven by Office 365 commercial revenue growth of 54% (up 59% in constant currency)
- Office consumer products and cloud services revenue grew 19% (up 18% in constant currency) with Office 365 consumer subscribers increasing to 23.1 million
- Dynamics products and cloud services revenue grew 6% (up 7% in constant currency) with Dynamics CRM Online paid seats growing more than 2.5x year-over-year
SEGMENT INFORMATION
Productivity and Business Processes
Productivity and Business Processes revenue increased $308 million or 5%, primarily due to higher revenue from Office. Revenue included an unfavorable foreign currency impact of approximately 3%.
- Office Commercial revenue increased $249 million or 5%, driven by higher revenue from Office 365 commercial, mainly due to growth in subscribers, offset in part by lower volume licensing revenue, reflecting a continued shift to Office 365 commercial. Revenue included an unfavorable foreign currency impact of approximately 4%.
- Office Consumer revenue increased $124 million or 19%, driven by higher revenue from Office 365 consumer, mainly due to growth in subscribers.
- Dynamics revenue increased 6%, mainly due to higher revenue from Dynamics CRM Online, driven by seat growth.
Productivity and Business Processes operating income decreased $167 million or 5%, driven by higher operating expenses. Operating expenses increased $155 million or 6%, mainly due to higher sales and marketing expenses, driven by increased investments in cloud sales programs. Gross margin decreased slightly, primarily due to higher cost of revenue, driven by an increased mix of cloud offerings, offset in part by higher revenue. Gross margin included an unfavorable foreign currency impact of approximately 4%.
