Microsoft’s executive vice president Amy Hood announces “solid results” for its FY16 Q3

Michael Cottuli

Microsoft has released their earnings report for the third quarter of the 2016 fiscal year and is reporting some great results, with plenty of improvements and solid earnings across the board. In the post put up on Microsoft’s site, Amy Hood, executive vice president, and chief financial officer commented that “Our continued operational and financial discipline drove solid results this quarter. We remain focused on investing in our strategic priorities to drive long-term growth.”

Revenue in Productivity and Business Processes grew 1% (up 6% in constant currency) to $6.5 billion, with the following business highlights:

  • 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

Revenue in Intelligent Cloud grew 3% (up 8% in constant currency) to $6.1 billion, with the following business highlights:

  • 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

Revenue in More Personal Computing grew 1% (up 3% in constant currency) to $9.5 billion, with the following business highlights:

  • 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
  • Search advertising revenue excluding traffic acquisition costs grew 18% in constant currency with continued benefit from Windows 10 usage

We’ll have stories out throughout the day giving you the full rundown of everything that’s in the Q3 report, but the gist of it is this: Microsoft did exactly as well as they wanted to, if not better. 2016 has been a year where they released some of their coolest products – the Lumia 950, the Surface Book, etc. – and it seems like they’re successfully riding on the numbers that those devices were able to bring them.