Linkedin’s overall contribution to Microsoft’s second fiscal quarter (Q2-FY17) was revenues of $228 million, and net income of $100 million. Microsoft mentioned that it completed acquisition Linkedin last month and that its revenue contribution was for the three-week period from December 8th to the end of the second quarter.
CEO Satya Nadella said during the company’s conference call that the newly revamped Linkedin design for mobile users drove “significant engagement growth in 2016”. “This quarter, sessions on LinkedIn grew more than 20% year-over-year, a consistent level of growth throughout 2016,” he added without providing any accurate numbers.
Some highlights from the con call:
On Surface Studio and Holo Lens
Microsoft’s recently launched all-in-one desktop PC “Surface Studio” which looks to compete with Apple’s iMac segment saw demand from enterprise customers. “Commercial demand for Surface remains strong, with three consecutive quarters of more than 25% growth,” Nadella said. UK’s tax, payments, and customs authority HM Revenue & Customs is “rolling out Surface to more than 25,000 employees,” he added.
Enterprise customers like ThyssenKrupp Elevator are using HoloLens— Microsoft’s Augmented Reality (AR) glasses—to automate functions like elevator servicing for its clients. Microsoft said that it will expand the availability of HoloLens in newer markets like China in the first half of 2017.
Nadella said that the company’s voice-based AI assistant, Cortana will be opening for developers using Cortana Devices SDK in key “addressable markets” in the coming months. “Users have asked Cortana more than 18 billion questions to date,” he added. Cortana is also present in the enterprise segment with companies like BMW, Renault-Nissan and Harman embedding it into their vehicles.
On gaming segment and Xbox usage
Microsoft’s Windows 10 platform have been logged more than 26 billion hours of gameplay on both PCs and detachable tablets during the quarter. Most of the usage was registered via the company’s live gaming platform Xbox Live, which is open to users on social media platforms. “Xbox Live monthly active users grew to 55 million this quarter, a new record – with growth across PCs, mobile and console,” Nadella said. In the same quarter last year, there were 48 million monthly active users on Xbox Live.
Windows 10 creator update, which integrates virtual reality gaming on Windows PCs and tablets will soon launch with OEM partners like Dell, HP, Lenovo and Acer. “We’re also broadening our opportunity through partnerships with chipset makers Intel and Qualcomm, who have committed to build the next generation of modern Windows PCs with advanced security, connectivity, AI, mixed reality, and gaming,” said Nadella during the call.
On Artificial Intelligence and Bots
Microsoft will be expanding AI capabilities on its Azure cloud computing and storage platform for businesses. Cognitive Services integrated with Azure will enable customers to use AI capabilities to analyze images, text, emotions, and sentiments at the “petabyte scale”, the company added.
Microsoft’s Bot Net Framework, which helps developers build and integrate intelligent bots to interact with users on services like Skype, Facebook Messenger, Slack, etc is now being used by more than 77,000 developers.
– Microsoft reported overall revenues of $24.1 billion during Q2FY17, which is marginally up from $23.7 billion in the same quarter last year (Q2FY16).
–Net Income for the quarter stood at $5.2 billion, which is up marginally from $5.01 billion in the same quarter last year.
–Productivity and Business segment accounted for revenues of $7.3 billion for the quarter, up 10% Year-on-Year from $6.6 billion.
–Cloud business posted revenues of $6.8 billion during Q2FY17, up marginally from $6.3 billion in the same quarter last year.
–Mobile and PC segment revenues were $11.8 billion for the quarter, up 27% Year-on-Year from $9.2 billion.