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Microsoft’s Q3 2017: Cloud And Office Power Growth

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Microsoft has published its Q3 fiscal 2017 earnings report, and the company has made $4.8 billion in net income on $22.1 billion in revenue. Both revenue and profit are up from the same period last year, and the company’s Office and cloud products continue to help generate big parts of the overall revenue.

Unsurprisingly, Surface revenue is down this quarter. Microsoft has not significantly refreshed its Surface Pro or Surface Book line, and Surface revenue has dipped 26 percent as a result to $831 million. Despite the Surface miss, Windows seems to be recovering from its usual declines. Windows OEM revenue is up 5 percent year-over-year, and Windows commercial products and cloud services revenue also increased by 6 percent compared to the same period last year. The Windows boosts come as the PC market appears to be stabilizing slightly. Microsoft isn’t saying much about its mobile plans, but its phone revenue dipped $730 million this quarter.

This is the first quarter that Microsoft is counting LinkedIn’s contributions to its results, and the social network was responsible for $975 million of revenue. Microsoft will now need to focus on operating expenses and the costs of LinkedIn revenue to prove that its bet will pay off in the long term.

As always, Microsoft’s cloud and Office products have helped push revenues and profits. Office commercial products and cloud services revenue increased 7 percent year-over-year, and even Office consumer products and cloud services revenue increased by 15 percent. Microsoft now has 26.2 million Office 365 consumer subscribers. Server products and cloud services revenue increased 15 percent, with Azure revenue itself growing by 93 percent.

Overall, it’s a solid quarter for Microsoft as it continues to compete against both Google and Amazon for cloud customers.

Source: TheVerge

About Alfred Francis Osei

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