Microsoft Earns $8.8 Billion on Revenues of $30.6 Billion

Posted on April 24, 2019 by Paul Thurrott in Microsoft with 13 Comments

Analysis: Microsoft Earnings

Microsoft announced today that it earned a net income of $8.8 billion on revenues of $30.6 billion in the quarter ending March 31. Net income rose 19 percent, while revenues were up 14 percent year over year (YOY).

“Leading organizations of every size in every industry trust the Microsoft cloud,” Microsoft CEO Satya Nadella said in a prepared statement. “We are accelerating our innovation across the cloud and edge so our customers can build the digital capability increasingly required to compete and grow.”

More Personal Computing was again Microsoft’s biggest business unit, earning $10.7 billion in revenues in the quarter, a gain of 14 percent. Windows revenues from PC makers grew 15 percent overall, but consumer revenues were down 1 percent, so all of the growth came from businesses. Surface revenues hit $1.33 billion, down from $1.9 billion in the previous sequential quarter but up 21 percent from $1.1 billion in the year-ago quarter. Gaming revenue was up to $2.4 billion, though Xbox Live monthly active user count fell sequentially by 1 million to 63 million.

Productivity and Business Processes was Microsoft’s second-largest business unit by revenue, hitting $10.2 billion in the quarter. Office 365 Commercial saw revenues grow by 12 percent YOY while Office 365 Consumer revenue jumped by 8 percent. Microsoft now has 180 million active monthly users on Office 365 Commercial, up 8 percent, and 34.2 million Office 365 Consumer subscribers, up from 30.6 million a year ago.

Microsoft’s Intelligent Cloud business unit posted revenues of $9.7 billion, up 22 percent YOY. Azure growth was 73 percent, consistent with the past several quarters.  Server products and cloud services grew 27 percent. And Enterprise Mobility surpassed 100 million seats in the quarter.

Overall, another solid quarter for the software giant. I’ll pour over the post-earnings conference call for more details.

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Comments (13)

13 responses to “Microsoft Earns $8.8 Billion on Revenues of $30.6 Billion”

  1. Jim Lewis

    Nice commentary but I think in the last line it's "pore over" - unless you're planning on spillling your coffee on the report or your computer monitor!

    • Ndragonawa

      In reply to Jim_Lewis:

      I think pour is ok, assuming that Paul wanted to "express one's feelings or thoughts in a full and unrestrained way" (pour), as opposed to "be[ing] absorbed in the reading or study of" (pore).

      • ecumenical

        In reply to Ndragonawa:

        Don't overthink it. Paul wrote "I’ll pour over the post-earnings conference call for more details." Obviously only "pore" is correct - he'll "be absorbed in the study of" the call in order to get "more details."

  2. Pbike908

    Say what you want, those are some pretty unbelievable numbers considering Microsoft totally whiffed at mobile....

  3. locust infested orchard inc

    Microsoft was the computing champ of the 20th century, as it continues its resilience, intellect, agility, and foresight into the 21st century – in spite of flopping at the unfoldable smartphone device sector.

    Other had-been computing companies (as they become so within the next few years), resort to data-harvesting and launching credit cards in a vain attempt to remain relevant.

  4. dcdevito

    Another great quarter. Azure/commercial cloud up 41% year over year. Damn. It was quite amusing though that the press release, albeit HTML based, was originally written in...of course....Word lol. Of Microsoft, never change haha.

  5. dontbe evil

    but but nobody wants windows, office, surface, xbox, azure, bing ... /s

  6. glenn8878

    They have enough money for another acquisition that they can blow up. Where’s Steve Ballmer?

  7. provision l-3

    Given all the complaining about Microsoft ditching its less successful consumer products you would have thought they were in trouble rather than making smart business decisions. Hat tip to Nadella for ditching Ballmer's folly.