Microsoft reports Q2 revenue up 18% YoY to $62B, net income up 33% YoY to $21.9B, Office Commercial revenue up 15% YoY, and LinkedIn revenue up 9% YoY
REDMOND, Wash. — January 30, 2024 — Microsoft Corp. today announced the following results for the quarter ended December 31, 2023 …
Microsoft
Context & Ripple Effects
Microsoft entered the period after a Q1 in which revenue rose 13% and Office Commercial grew 15%, making the latest results evidence of continued strength in its commercial software base rather than an isolated rebound.
The following quarter, revenue again grew 17% while Office Commercial rose 13%, suggesting that Microsoft’s growth remained broad enough to persist even as the reported growth rates varied across businesses.
First-order effects
- Microsoft exits the quarter with materially higher revenue and profit, increasing the financial contribution of its core commercial operations.
- Office Commercial maintains 15% growth, while LinkedIn’s 9% increase extends growth in Microsoft’s professional-networking business.
Second-order effects
- The results raise the performance benchmark for enterprise-software rivals competing for commercial productivity and professional-networking budgets.
- Sustained growth across Office Commercial and LinkedIn makes Microsoft’s ability to monetize business workflows and commercial audiences more central to comparisons of its operating mix.
Third-order effects
- If this pattern persists, large platforms with embedded workplace products and business networks may gain a more durable advantage in monetizing recurring commercial activity.
- The key structural question is whether growth remains distributed across these businesses; the subsequent quarter’s continued increases support that direction but do not establish a permanent rate.
The trend: This is one data point in the broader shift toward workflow-native platforms extracting more revenue from recurring enterprise and professional activity.
Related: Microsoft · LinkedIn · Workflow-native monetization · Commercial-intent density · Microsoft Q1 results · Microsoft Q3 results
Related Coverage
- Microsoft posts another set of bumper results. Market's response? Meh The Register · Richard Speed
- Activision Blizzard added $2.1 billion to Microsoft's gaming revenue in Q2, driving its 49% growth Game World Observer · Evgeny Obedkov
- Microsoft again blows away earnings estimates as AI's contribution grows SiliconANGLE · Paul Gillin
- Microsoft delivers over $7B in gaming revenue during Q2, barely mentions almost 2,000 layoffs Game Developer
- Microsoft Omits the AI Progress Report Investors Wanted Bloomberg · Dave Lee
- AI push sees Microsoft cloud revenues hit new high TechRadar
- Microsoft beats Q2 earnings on AI, cloud strength, shares flat Yahoo Finance · Daniel Howley
- Microsoft gaming revenue up 49% after Activision Blizzard joins Xbox Game Studios TrueAchievements · Tom West
- Microsoft's Fiscal Q2 2024: Cloud Services Spearhead Revenue Surge WinBuzzer · Luke Jones
- Microsoft Sees Revenue Growth in Latest Financial Quarter Digital Information World · Mahrukh Shahid
- Microsoft: Rising cost of AI could weigh on share price, analysts warn CityAM
- Microsoft generates $62 billion in revenues in its Q2 2024 fiscal year financial results Neowin · John Callaham
- Microsoft profit soars 33% on AI, cloud-computing investments Associated Press · David Hamilton
- Microsoft Azure revenue up 30%, with help from AI, as tech giant beats overall expectations GeekWire · Todd Bishop
- Microsoft Search and News Advertising revenue up 8% Search Engine Land · Nicola Agius
- Microsoft Revenues Up 18 Percent in Quarter to $62 Billion Thurrott · Paul Thurrott
- Microsoft Beats December-Quarter Targets On Strong Cloud Business Investor's Business Daily · Patrick Seitz
- Microsoft's Q2, FY24 earnings report — ✅ Revenue grew 18% to $62 billion — ✅ Operating income grew 25% to $27 billion … Jack Rowbotham
- Microsoft results show benefits of AI on Azure ComputerWeekly.com · Cliff Saran
- Microsoft earnings top expectations on cloud strength Axios · Ina Fried
- Microsoft touts AI strength, but shares dip as market digests costs Business Today · Mehak Agarwal
- CNBC Daily Open: Tech earnings not good enough for Wall Street KNSD-TV
- Wall Street punishes Alphabet and Microsoft despite earnings beats after stocks hit record NBC Bay Area
- AI Delivers for Microsoft as It Hauls in $62 Billion in Q2 Revenue The Messenger · Jackie Snow
- Microsoft Reports 18% Revenue Growth as New AI Products Begin to Lift Azure, Office The Information · Aaron Holmes
- Microsoft beats quarterly revenue estimates Reuters
- Microsoft financial results show that the company's Q4 was better than its Q3. Revenue growth is back above the 15% mark, with Azure accelerating, Windows improving and Activision participating now. … Jordan Novet
- Microsoft's gaming revenue was up 49 percent in Q2, mostly thanks to the Activision deal Engadget · Devindra Hardawar
- Microsoft did more business in gaming than with Windows; garbs 3rd spot MSPoweruser · Devesh Beri
- New Xbox Report Reveals Record Number of Monthly Active Users and Major Increase in Sales Game Rant · Charming Holiday
- Microsoft milestone: Games top Windows for first time, with addition of Activision Blizzard GeekWire · Todd Bishop
- Xbox FY24 Q2 gaming revenue up 49% year-over-year, driven by impact of Activision Blizzard acquisition Windows Central · Samuel Tolbert
- Microsoft Azure revenue growth accelerates in Q2 Constellation Research · Larry Dignan
- Microsoft's Gaming Revenue Is Up 49 Percent In Q2, Mostly Thanks To the Activision Deal Slashdot · BeauHD
Discussion
-
@epro.social
Emil Protalinski
on bluesky
$MSFT Q2 2024 — Revenue up 18% to $62.0 billion — Net income up 33% to $21.9 billion — Azure up 30% — Office Commercial up 15% — Office 365 Commercial up 17% — Office Consumer up 5% — LinkedIn up 9% — Windows OEM up 11% — Windows Commercial up 9% — Devices dow…
-
@divestech
Dan Ives
on x
Microsoft delivers another masterpiece quarter. Beats across the board with an Azure number beating the Street by 250/300 bps. AI driving cloud strength and uses cases catalyzing demand for MSFT. Guidance on the call but hard to poke holes in this A+ print by Redmond. 🔥🏆
-
@jordannovet
Jordan Novet
on x
Satya does not specify the number of paid Microsoft 365 Copilot subscribers
-
@thetranscript_
@thetranscript_
on x
$MSFT CEO: “GitHub revenues accelerated to >40% YoY, driven by all our platform growth & adoption of GitHub Co-pilot...We now have >1.3M paid GitHub copilot subscribers, +30% QoQ & & 50k+ organizations use GitHub copilot business to supercharge the productivity of the developers”
-
@carnage4life
Dare Obasanjo
on x
Microsoft justifies its spot as the most valuable company in the world by beating expectations and a positive outlook for the rest of the year. • Revenue +18% to $62B • Profits +25% to $27B Maybe employees can get raises this year after none last year https://finance.yahoo.com/..…
-
@jordannovet
Jordan Novet
on x
Satya says he's using Copilot to summarize emails and Teams meetings
-
@munster_gene
Gene Munster
on x
$MSFT earnings call data point that points to the pace of AI adoption. Over 1/3 of the 53k Azure customers are new over the last year. That means that while Azure revenue grew at 30% YoY in December, the customer base over the past year grew at 50%. Thats a positive sign that …
-
@munster_gene
Gene Munster
on x
$MSFT just gave a positive outlook for March. The two most important guidance takeaways: 1. Office 365 of 15% growth was higher than what I believe the Street was 12%. 2. Azure growth will be stable at 30%, inline with December growth. Whats impressive with the March guide is…
-
@jordannovet
Jordan Novet
on x
one view on effects of Activision Blizzard on Microsoft: Q3: gaming was 7% of Microsoft's total revenue (~$57B) Q4: gaming was over 11% of total revenue ($62B) gaming is now *bigger than Windows* the deal closed on 10/13. impact could be more significant in the quarters ahead
-
@munster_gene
Gene Munster
on x
$MSFT expects full year 2024 margins to expand by 1-2% over 2023 even though they will be investing heavily in AI.
-
@altcap
Brad Gerstner
on x
People still think AI is a Silicon Valley created fad / hype cycle? No doubt there are pretenders - but as we have been saying - the impact of AI on human progress will be bigger than the internet itself. @BG2Pod 🚀🚀
-
@jaminball
Jamin Ball
on x
Azure at a ~$74B run rate growing 28% constant currency Quarterly YoY growth trends below. Also shown estimated growth ex AI services. Not all software co's have the AI accelerant Microsoft does! In last 3 quarters AI Services run rate has gone ~$500m > ~$2B > ~$4B $MSFT [image]
-
@nikolaevra
Ruslan Nikolaev
on x
@jaminball Keep in mind that they basically paid for all this AI Service growth themselves by giving $10B to OpenAI, that is now buying their AI compute right back from them...
-
Pure Xbox
Ben Kerry
on x
Xbox Predicts ‘Hardware Decline’ Despite Huge Revenue Boost From ActiBlizz
-
@tomwarren
Tom Warren
on x
Microsoft CEO Satya Nadella on gaming in Q2, 2024: “This quarter we set all-time records for monthly active users of Xbox, PC, as well as mobile where we now have 200 million monthly active users, inclusive of Activision Blizzard King. With cloud gaming we continue to innovate...
-
@tomwarren
Tom Warren
on x
Gaming is now Microsoft's third largest business, bigger than Windows. Microsoft made $62 billion in Q2 2023 (fiscal). Gaming contributed $7.11 billion, more than the $5.26 billion from Windows https://www.theverge.com/... [image]
-
@tomwarren
Tom Warren
on x
Microsoft CFO Amy Hood shares Q3 outlook for gaming: • gaming growth in low 40s, with 45 points of net impact from ABK • Xbox content + services low to mid 50s, 50 points of net impact from ABK • “[Xbox] hardware revenue will decline year-over-year” https://www.theverge.com/...