Microsoft today announced the financial results for the quarter ended December 31, 2016 wherein:
- The company’s 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.
Revenue in More Personal Computing was $11.8 billion and decreased 5% (down 4% 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 5% (up 6% in constant currency) driven by annuity revenue growth
- Search advertising revenue excluding traffic acquisition costs increased 10% (up 11% in constant currency) driven by increased revenue per search and search volume
- Gaming revenue decreased 3% (down 1% in constant currency) with lower Xbox console revenue offset by Xbox software and services revenue growth.
Revenue in Intelligent Cloud was $6.9 billion and increased 8% (up 10% in constant currency), with the following business highlights:
- Server products and cloud services revenue increased 12% (up 14% in constant currency) driven by double-digit annuity revenue growth
- Azure revenue increased 93% (up 95% in constant currency) with Azure compute usage more than doubling year-over-year
- Enterprise Services revenue decreased 4% (down 2% in constant currency) with declines in custom support agreements offset by growth in Premier Support Services and consulting
“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,” said Amy Hood, executive vice president and chief financial officer at Microsoft.
To Summarise, the Q2 2017 has been a good quarter for the Redmond Giant which has seen an increase in the Cloud Revenue.