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Microsoft has announced US$23.3 billion revenue (up 13% year-on-year) and a US$6.5 billion net profit (up 73%) for its Q4 that concluded on 30 June.
Chief executive Satya Nadella said, “Innovation across our cloud platforms drove strong results this quarter. Customers are looking to Microsoft and our thriving partner ecosystem to accelerate their own digital transformations and to unlock new opportunity in this era of intelligent cloud and intelligent edge.”
GAAP (generally accepted accounting principles) is used in this report but it is significant to point out that non-GAAP results that reflect the actual company performance were significantly better.
Amy Hood, executive vice-president and chief financial officer at Microsoft, said, “We delivered a strong finish to the year with 30% growth in commercial bookings this quarter. We will continue to invest in key areas that drive future growth for Microsoft and our customers.”
{loadposition ray}The full results are here.
Revenue in Productivity and Business Processes was US$8.4 billion and increased 21%, with the following business highlights:
- Office commercial products and cloud services revenue increased 5% driven by Office 365 commercial revenue growth of 43% (up 44% in constant currency).
- Office consumer products and cloud services revenue increased 13% and Office 365 consumer subscribers increased to US$27 million.
- Dynamics products and cloud services revenue increased 7% driven by Dynamics 365 revenue growth of 74%.
- LinkedIn contributed revenue of US$1.1 billion during the quarter.
Revenue in Intelligent Cloud was US$7.4 billion and increased 11% with the following business highlights:
- Server products and cloud services revenue increased 15% driven by Azure revenue growth of 97%.
- Enterprise Services revenue decreased 3% with declines in custom support agreements offset by growth in Premier Support Services.
Revenue in More Personal Computing was US$8.8 billion and decreased 2% driven primarily by lower phone revenue, with the following business highlights:
- Windows OEM revenue increased 1%, slightly ahead of the overall PC market.
- Windows commercial products and cloud services revenue increased 8% driven by annuity revenue growth.
- Surface revenue decreased 2% mainly due to product lifecycle transitions.
- Search advertising revenue excluding traffic acquisition costs increased 10% driven by higher revenue per search and search volume.
- Gaming revenue increased 3% as strength in Xbox software and services offset lower hardware revenue.
Fiscal Year 2017 Results
Microsoft announced the following results for the fiscal year ended June 30, 2017:
- Revenue was US$90.0 billion GAAP, and US$96.7 billion non-GAAP.
- Operating income was US$22.3 billion GAAP, and US$29.3 billion non-GAAP.
- Net income was US$21.2 billion GAAP, and US$25.9 billion non-GAAP.
- Diluted earnings per share was US$2.71 GAAP, and US$3.31 non-GAAP.
