Microsoft Earnings Report for Q2 2017: Revenue reaches $26B fueled by cloud services

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Microsoft released its 2017 Q2 earnings yesterday, reporting $26.1 billion in revenue and confirming the close of its LinkedIn acquisition during the quarter ending on December 31, 2016.

The company reported a number of increases in revenue across its Productivity and Business Processes lines, with overall revenue reaching $7.4 billion. Its Office consumer products and cloud services revenue was up 22 percent, with Office 365 consumer subscribers growing to 24.9 million.

Office commercial product revenue and clouds services was up five percent, with Office 365 commercial revenue up 47 percent. Dynamics product revenue increased seven percent.

Microsoft reported revenue from LinkedIn was $228 million for the quarter.

The company’s Intelligent Cloud revenue was up eight percent at $6.9 billion. The biggest gain in this area came from Microsoft’s Azure cloud computing service, up 93 percent – more than doubling year-over-year.

“Accelerating advancements in AI across our platforms and services will provide further opportunity to drive growth in the Microsoft Cloud,” said, CEO Satya Nadella, in an announcement covering Microsoft’s earnings.

CFO Amy Hood said she was pleased with the quarter’s results as well, also mentioning Microsoft’s cloud services growth, “We see strong demand for our cloud-based services and are executing well on our long-term growth strategy.”

While cloud-services was up, the company’s revenue from its More Personal Computing dropped five percent, at $11.8 billion for the quarter.

Bing’s search ad revenue was up ten percent.

Here’s a quick rundown of year-over-year percentage changes in revenue for a selection of Microsoft’s products and services:

Microsoft Selected Product and Service Revenue Y-o-Y Percentage Change

Microsoft Q2 2017

A thorough breakdown of Microsoft’s earning can be found in the slides it released in conjunction with yesterday’s earnings call: Microsoft 2017 Q2 Earnings Call Slides.


About The Author

Amy Gesenhues is Third Door Media’s General Assignment Reporter, covering the latest news and updates for Marketing Land and Search Engine Land. From 2009 to 2012, she was an award-winning syndicated columnist for a number of daily newspapers from New York to Texas. With more than ten years of marketing management experience, she has contributed to a variety of traditional and online publications, including MarketingProfs.com, SoftwareCEO.com, and Sales and Marketing Management Magazine. Read more of Amy’s articles.


 

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