Microsoft beats by $0.04, beats on revs
- Reports Q4 (Jun) earnings of $0.75 per share, excluding a $0.23/share ($1.8 bln) tax benefit, $0.04 better than the Capital IQ Consensus of $0.71; revenues rose 9.1% year/year to $24.7 bln vs the $24.29 bln Capital IQ Consensus.
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Revenue in Productivity and Business Processes was $8.4 billion and increased 21% (up 23% in constant currency), with the following business highlights:
- Office commercial products and cloud services revenue increased 5% (up 6% in constant currency) driven by Office 365 commercial revenue growth of 43% (up 44% in constant currency)
- Office consumer products and cloud services revenue increased 13% (up 13% in constant currency) and Office 365 consumer subscribers increased to 27.0 million
- Dynamics products and cloud services revenue increased 7% (up 9% in constant currency) driven by Dynamics 365 revenue growth of 74% (up 75% in constant currency)
- LinkedIn contributed revenue of $1.1 billion during the quarter
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Revenue in Intelligent Cloud was $7.4 billion and increased 11% (up 12% in constant currency), with the following business highlights:
- Server products and cloud services revenue increased 15% (up 16% in constant currency) driven by Azure revenue growth of 97% (up 98% in constant currency)
- Enterprise Services revenue decreased 3% (down 1% in constant currency) with declines in custom support agreements offset by growth in Premier Support Services
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Revenue in More Personal Computing was $8.8 billion and decreased 2% (down 1% in constant currency) driven primarily by lower phone revenue, with the following business highlights:
- Windows OEM revenue increased 1% (up 1% in constant currency), slightly ahead of the overall PC market
- Windows commercial products and cloud services revenue increased 8% (up 8% in constant currency) driven by annuity revenue growth
- Surface revenue decreased 2% (down 1% in constant currency) mainly due to product lifecycle transitions
- Search advertising revenue excluding traffic acquisition costs increased 10% (up 11% in constant currency) driven by higher revenue per search and search volume
- Gaming revenue increased 3% (up 4% in constant currency) as strength in Xbox software and services offset lower hardware revenue.
- "We delivered a strong finish to the year with 30% growth in commercial bookings this quarter."
- Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.