Microsoft Revenues Up 15 Percent in Quarter, 16 Percent in Fiscal Year 2024

Microsoft reported that it earned a net income of $22 billion on revenues of $64.7 billion in the quarter ending June 30. Those figures represent year-over-year gains of 10 percent and 15 percent respectively, and Microsoft beat expectations.

The quarter also marked the end of Microsoft’s fiscal year 2024. For the year, the software giant earned a net income of $88.1 billion on revenues of $245.1 billion, gains of 22 percent and 16 percent, respectively.

“Our strong performance this fiscal year speaks both to our innovation and to the trust customers continue to place in Microsoft,” Microsoft chairman and CEO Satya Nadella said. “As a platform company, we are focused on meeting the mission-critical needs of our customers across our at-scale platforms today, while also ensuring we lead the AI era.”

Intelligent Cloud was again the biggest of Microsoft’s three business units, with $28.5 billion in revenues, up 19 percent YOY. Azure delivered 29 percent revenue growth, which was slightly below expectations. Server products and services grew 21 percent, and the Enterprise Mobility installed base grew 10 percent to over 281 million seats.

Productivity and Business Processes delivered another $20.3 billion in revenues, up 11 percent YOY thanks largely to Office 365/Microsoft 365. Office commercial products and service revenue was up 12 percent, while Office consumer products and services were up 3 percent. There are now 82.5 million Microsoft 365 consumer subscribers.

And More Personal Computing added $15.9 billion, up 14 percent YOY. Overall Windows revenues were up 7 percent, while revenues from PC makers were up 4 percent (much lower than the 11 percent seen in the previous two sequential quarters). Surface revenues declined to11 percent, marking a full year of quarterly shrinkage. And Xbox content and service revenues were up 61 percent, though 58 points of that is attributable to Activision Blizzard. Otherwise, that business is tanking badly, with hardware revenues down an incredible 41 percent.

I’ll have a more detailed look at the earnings tomorrow morning.