Microsoft has posted the outcomes of the third quarter of its 2018 monetary yr, operating up till March 31, 2018. Income was $26.eight billion, up 16 % yr on yr; working earnings was $eight.three billion, up 23 %; internet earnings was $7.four billion, up 35 %; and earnings per share was $zero.95, up 36 %.

Microsoft at present has three reporting segments: Productiveness and Enterprise Processes (overlaying Workplace, Trade, SharePoint, Skype, and Dynamics), Clever Cloud (together with Azure, Home windows Server, SQL Server, Visible Studio, and Enterprise Companies), and Extra Private Computing (overlaying Home windows, , and Xbox, in addition to search and promoting). This reporting construction has been retained although the Home windows division has been reorganized with duties cut up between totally different teams.

The corporate additionally continues to report numbers from LinkedIn each as a part of the Productiveness group and independently. Microsoft has now owned LinkedIn for a full yr, enabling for the primary time year-on-year comparisons. LinkedIn income was $1.three billion, up 37 %, with a price of income of $zero.four billion, up 11 %, and working bills of $1.1 billion, up 19 %. This produces an working lack of $zero.25 billion, which is 35 % decrease than it was for a similar quarter final yr.

The productiveness group posted income of $9 billion, up 17 % yr on yr. Working earnings was $three.1 billion, an increase of 23 %. This income progress was pushed by LinkedIn and Workplace 365. Industrial Workplace 365 income was up 42 %. This progress got here from a 28-percent enhance in customers—now at greater than 135 million per 30 days—mixed with increased income per person. In contrast, conventional Workplace product income was down 15 %, reflecting the shift to cloud providers. Taken collectively, Workplace business income was up 14 %. Shopper Workplace income was up 12 % on the again of elevated subscribers. Microsoft now has 30.6 million client Workplace 365 subscribers. Dynamics income was additionally up 17 %, with a 65-percent enhance in Dynamics 365 subscription income.

Cloud group income was $7.9 billion, up 17 % yr on yr, with working earnings of $2.7 billion, a rise of 24 %. Income grew in all three segments: product income, cloud income, and Enterprise Companies. Azure income was up 93 %, server product income was up three %, and Azure “premium providers” income was up by “triple digits” for the 15th quarter in a row. Enterprise Companies income grew by eight %.

A blended bag for Home windows

Extra Private Computing income was $9.9 billion, up 13 %, with working earnings of $2.5 billion, up 24 %. Home windows, gaming, Floor, and search all grew. The Home windows story was a story of two markets. Company-oriented OEM Professional income was up 11 % on the again of a stronger company PC market. Shopper income, nevertheless, was down eight %, under the overall decline of the PC market, as a result of a shift to lower-priced merchandise. Home windows quantity license and cloud providers income was up 21 %.

Gaming income was up 18 % to $2.three billion, because of Xbox software program and repair income being 24 % increased. There are 59 million month-to-month lively customers of Xbox Dwell, up 13 % on final yr. Search income was up 16 %, excluding site visitors acquisition prices, with a mixture of increased income per search and extra searches.

Lastly, Floor income was up a wholesome 32 % yr on yr, to $1.1 billion. This progress displays the higher lifecycle positioning of the Floor line; this time final yr, the product vary was wanting very lengthy within the tooth and in want of an improve. This definitely represents an enchancment, placing it again above a billion dollars 1 / 4, however it nonetheless leaves the enterprise in an odd place, hovering across the $1 billion-per-quarter mark for a number of years. Microsoft is doing simply sufficient to maintain Floor at this stage however appears to be doing little to enter new markets or provide new type components to push it past this stage.

Total, the outcomes characterize a stable quarter, although, as ever, they go away sure questions unanswered. Specifically, Microsoft continues to supply progress figures for Azure with out offering any info on what the income truly is, a call that makes correctly evaluating Azure with its large competitor, Amazon Internet Companies, not possible.


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