Microsoft has reported revenue of US $28.9 billion in the quarter ended December 31, marking an increase of 12 percent year on year touching US, in an earnings statement.
The corporation’s operating income was $8.7 billion in this period (FY18 Q2) and increased by 10 percent.
Microsoft’s largest business segment is More Personal Computing, which includes Windows, devices, gaming and search advertising. It grew by 2 percent, with $12.17 billion in revenue.
Gaming revenue increased 8 percent, driven by the launch of Xbox One X. In this segment, search advertising revenue excluding traffic acquisition costs increased 15% (up 15% in constant currency) driven by higher revenue per search and search volume
Productivity and business processes
Revenue in Productivity and Business Processes was $9.0 billion and increased 25 percent. This segment includes Office, Dynamics and LinkedIn. LinkedIn contributed revenue of $1.3 billion during the quarter with sessions growth of over 20 percent for the fifth consecutive quarter.
Office 365: Commercial revenue of Office 365 grew by 41 percent. However, revenue from office commercial products declined by 16 percent, reflecting the adoption of cloud offerings, Microsoft said.
For Office Consumer products and cloud services, revenue grew by 12 percent, on the back of recurring subscription revenue. In this quarter, consumer subscribers of Office 365 reached 29.2 million.
Intelligent Cloud business, which contains Azure, Windows Server and SQL Server, produced $7.80 billion in revenue, giving it a 15 percent growth rate. In this, revenue from cloud computing service Azure grew massively, by 98 percent. Azure, thus, drove up the total revenue from server products and cloud services by 18 percent. Revenue from Azure premium services grew in triple digits for the 14th quarter in a row, reported Microsoft.
“Our investments in IoT, data, and AI services across cloud and the edge position us to further accelerate growth,” said Satya Nadella, chief executive officer of Microsoft.
Azure has recorded a high growth rate in the past as well. In the third quarter of the financial year 2016, it reported a growth of 120 percent in revenue. It has had a growth rate of over 90 percent in the past four quarters as well—FY17 Q2, FY17 Q3, FY17 Q 4 and FY18 Q1.