Microsoft misses by $0.02, reports revs in-line; guides Q3 on call (55.78 +0.19)
- Reports Q3 (Mar) earnings of $0.62 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus of $0.64; revenues rose 1.6% year/year to $22.08 bln vs the $22.11 bln Capital IQ Consensus.
- Productivity and Business Processes rev +1% to $6.5 bln vs. $6.4-6.6 bln guidance.
- Office commercial products and cloud services revenue grew 7% in constant currency driven by Office 365 revenue growth of 63% in constant currency
- Office consumer products and cloud services revenue grew 6% in constant currency with Office 365 consumer subscribers increasing to 22.2 million
- Dynamics products and cloud services revenue grew 9% in constant currency with Dynamics CRM Online seat adds more than doubling year-over-year.
- Intelligent Cloud rev +3% to $6.1 bln vs. $6.1-6.3 bln guidance
- Server products and cloud services revenue increased 5% in constant currency driven by double-digit annuity revenue growth
- Azure revenue grew 120% in constant currency with usage of Azure compute and Azure SQL database more than doubling year-over-year
- Enterprise Mobility customers more than doubled year-over-year to over 27,000, and the installed base grew nearly 4x year-over-year.
- Personal Computing revs +1% to $9.5 bln vs. $9.1-9.4 bln guidance.
- Windows OEM revenue declined 2% in constant currency, outperforming the PC market, driven by higher consumer premium device mix
- Surface revenue increased 61% in constant currency driven by Surface Pro 4 and Surface Book
- Phone revenue declined 46% in constant currency
- Xbox Live monthly active users grew 26% year-over-year to 46 million.