Yesterday, Microsoft reported the FY22 Q3 earnings results. Revenue was $49.4 billion (up 18%), operating income was $20.4 billion (up 19%) and the net income was $16.7 billion (up 8% GAAP). Most of the analyst estimates were below these numbers. Today, Microsoft’s stock price gained 3.65% following the strong results.
Microsoft’s CFO Amy Hood mentioned that strong numbers were driven by better than expected commercial bookings.
“Continued customer commitment to our cloud platform and strong sales execution drove better than expected commercial bookings growth of 28% and Microsoft Cloud revenue of $23.4 billion, up 32% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
You can find the segment wise highlights below.
Revenue in Productivity and Business Processes was $15.8 billion and increased 17%:
- Office Commercial products and cloud services revenue increased 12% (up 14% CC) driven by Office 365 Commercial revenue growth of 17% (up 20% CC)
- Office Consumer products and cloud services revenue increased 11% (up 12% CC) and Microsoft 365 Consumer subscribers grew to 58.4 million
- LinkedIn revenue increased 34% (up 35% CC)
- Dynamics products and cloud services revenue increased 22% (up 25% CC) driven by Dynamics 365 revenue growth of 35% (up 38% CC)
Revenue in Intelligent Cloud was $19.1 billion and increased 26%:
- Server products and cloud services revenue increased 29% (up 32% CC) driven by Azure and other cloud services revenue growth of 46% (up 49% CC)
Revenue in More Personal Computing was $14.5 billion and increased 11%:
- Windows OEM revenue increased 11%
- Windows Commercial products and cloud services revenue increased 14% (up 19% CC)
- Xbox content and services revenue increased 4% (up 6% CC)
- Search and news advertising revenue excluding traffic acquisition costs increased 23% (up 25% CC)
- Surface revenue increased 13% (up 18% CC)
During the earnings call, Microsoft highlighted the following:
- Azure Gaming revenue increased 66%.
- Game Pass subscribers played 45% more gaming hours.
- Microsoft Start has nearly 500 million active users.
- Microsoft Security solution customer base reached 785,000 (up 50%).
- Microsoft Azure Active Directory has 550 million active users.
- In the past 2 quarters, Xbox Series S and Series X market leader among next gen consoles in the US, UK, Canada and Western Europe.
- Number of $100 million+ Azure deals doubled YoY.
- Visual Studio has 31 million monthly active users.
- Power Platform reached $2 billion in revenue in the past 12 months. It is one of Microsoft’s fastest growing businesses.
- LinkedIn has 830 million active users.
- Dynamics 365 growing faster than the market.
- Viva platform has 10 million active users.