Software major Microsoft said it posted revenue of $28.9 billion (+12 percent) and operating income of $8.7 billion (+10 percent) with a net loss of $6.3 billion in the December quarter of 2017.
The Redmond, Washington-based Microsoft has generated second quarter revenue of $8.953 billion (+25 percent) and operating income of $3.337 billion from Productivity and Business Processes.
Microsoft generated revenue of $7.795 billion (+15 percent) and operating income of $2.832 billion from Intelligent Cloud.
The software company has generated revenue of $12.170 billion (+2 percent) and operating income of $2.510 billion from More Personal Computing.
“This quarter’s results speak to the differentiated value we are delivering to customers across our productivity solutions and as the hybrid cloud provider of choice,” said Satya Nadella, chief executive officer of Microsoft. “Our investments in IoT, data, and AI services across cloud and the edge position us to further accelerate growth.”
Productivity and Business Processes
Office commercial products and cloud services revenue increased 10 percent driven by Office 365 commercial revenue growth of 41 percent.
Office consumer products and cloud services revenue increased 12 percent and Office 365 consumer subscribers increased to 29.2 million.
Dynamics products and cloud services revenue increased 10 percent driven by Dynamics 365 revenue growth of 67 percent
LinkedIn contributed revenue of $1.3 billion during the quarter with sessions growth of over 20 percent for the fifth consecutive quarter.
Server products and cloud services revenue increased 18 percent driven by Azure revenue growth of 98 percent.
Enterprise Services revenue increased 5 percent driven by Premier Support Services.
Windows OEM revenue increased 4 percent driven by OEM Pro revenue growth of 11 percent.
Windows commercial products and cloud services revenue decreased 4 percent due to the impact of a prior year large deal.
Gaming revenue increased 8 percent driven by Xbox hardware revenue growth from the Xbox One X launch.
Search advertising revenue excluding traffic acquisition costs increased 15 percent driven by higher revenue per search and search volume.
Surface tablet revenue increased 1 percent.
TBR analyst Kelsey Mason said Microsoft delivered another cloud-boosted quarter with cloud revenue growth accelerating to 57 percent. Commercial Cloud performance was driven largely by stable revenue growth rates of Office 365 and Dynamics 365 and reinvigorated Azure growth of 98 percent.
Microsoft’s combination of on-premises server software, Azure public cloud and Azure Stack, augmented with strategic partnerships, keep the company top of mind for customers constructing hybrid environments.
Microsoft’s investments in emerging technology such as Internet of Things (IoT), artificial intelligence (AI) and high performance computing (HPC) create net-new opportunities for Azure and add greater value to Office 365 and Dynamics 365.