Microsoft revenue surges 18% thanks to Azure Cloud

Microsoft, announcing its earnings report, said its revenue of $49.4 billion (+18 percent), operating income of $20.4 billion (+19 percent) and net income of $16.7 billion (+8 percent) for the quarter ended March 31, 2022.
Microsoft stores“Going forward, digital technology will be the key input that powers the world’s economic output,” said Satya Nadella, chairman and chief executive officer of Microsoft. “Across the tech stack, we are expanding our opportunity and taking share as we help customers differentiate, build resilience, and do more with less.”

Satya Nadella said the number of $100 million-plus Azure deals more than doubled year-over-year in the third quarter.

“Continued customer commitment to our cloud platform and strong sales execution drove better than expected commercial bookings growth of 28 percent and Microsoft Cloud revenue of $23.4 billion, up 32 percent year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

Microsoft said revenue in Productivity and Business Processes was $15.8 billion and increased 17 percent, with the following business highlights:

Office Commercial products and cloud services revenue increased 12 percent driven by Office 365 Commercial revenue growth of 17 percent.

Office Consumer products and cloud services revenue increased 11 percent and Microsoft 365 Consumer subscribers grew to 58.4 million

LinkedIn revenue increased 34 percent.

Dynamics products and cloud services revenue increased 22 percent driven by Dynamics 365 revenue growth of 35 percent.

Microsoft said revenue in Intelligent Cloud was $19.1 billion and increased 26 percent, with the following business highlights:

Server products and cloud services revenue increased 29 percent driven by Azure and other cloud services revenue growth of 46 percent.

Microsoft said revenue in More Personal Computing was $14.5 billion and increased 11 percent, with the following business highlights:

Windows OEM revenue increased 11 percent.

Windows Commercial products and cloud services revenue increased 14 percent.

Xbox content and services revenue increased 4 percent.

Search and news advertising revenue excluding traffic acquisition costs increased 23 percent.

Surface revenue increased 13 percent.

Microsoft forecast double-digit revenue growth for the next fiscal year, driven by demand for cloud computing services.

Microsoft forecast Intelligent Cloud revenue of $21.1 billion to $21.35 billion for its fiscal fourth quarter, driven by strong growth in its Azure platform.

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