Microsoft has revealed its financial performance and key achievements for the quarter ended June 30, 2024.
Microsoft has reported revenue of $64.7 billion (up 15 percent), operating income of $27.9 billion (up 15 percent) and net income of $22 billion (up 10 percent).
Satya Nadella, chairman and chief executive officer of Microsoft, said: “As a platform company, we are focused on meeting the mission-critical needs of our customers across our at-scale platforms today, while also ensuring we lead the AI era.”
Microsoft revenue in Productivity and Business Processes was $20.3 billion (up 11 percent).
Microsoft Office Commercial products and cloud services revenue increased 12 percent driven by Office 365 Commercial revenue growth of 13 percent.
Microsoft Office Consumer products and cloud services revenue increased 3 percent.
Microsoft 365 Consumer subscribers grew to 82.5 million.
LinkedIn revenue increased 10 percent.
Dynamics products and cloud services revenue increased 16 percent driven by Dynamics 365 revenue growth of 19 percent.
Microsoft revenue in Intelligent Cloud was $28.5 billion (up 19 percent).
Server products and cloud services revenue increased 21 percent driven by Azure and other cloud services revenue growth of 29 percent.
While overall Azure growth slowed, AI services accounted for a larger portion of the increase in revenue in the June quarter at 8 percentage points, compared with 7 percentage points in the previous quarter.
The company does not break out the absolute revenue figure for Azure, the part of its business best situated to capitalize on booming interest in AI.
Azure AI was used by more than 60,000 customers, up nearly 60 percent year-on-year and that the average spend per customer continues to grow.
Revenue in More Personal Computing was $15.9 billion (up 14 percent).
Windows revenue increased 7 percent with Windows OEM revenue growth of 4 percent and Windows Commercial products and cloud services revenue growth of 11 percent.
Devices revenue decreased 11 percent.
Xbox content and services revenue increased 61 percent driven by 58 points of net impact from the Activision acquisition.
Search and news advertising revenue excluding traffic acquisition costs increased 19 percent.
Microsoft has reported revenue of $245.1 billion (up 16 percent), operating income of $109.4 billion (up 24 percent) and net income of $88.1 billion (up 22 percent) for the fiscal year ended June 30, 2024.
Microsoft said it would spend more money this fiscal year to build out AI infrastructure even as growth slowed in its cloud business, Reuters news report said.
Microsoft said on a post-earnings call that Azure cloud growth would accelerate in the second half of fiscal 2025.
Google-parent Alphabet warned last week that its capital spending would stay elevated for the rest of the year.
Microsoft said its capital spending rose 77.6 percent to $19 billion in its fiscal fourth quarter that ends June 30, with cloud and AI-related spending accounting for nearly all of the expenditures. For all of fiscal 2024, capital spending totaled $55.7 billion.
