Microsoft’s Q3 extends the growth acceleration visible in its preceding Q2 results, when revenue rose 18% year over year and Office Commercial grew 15%. This quarter retains double-digit growth in the company’s core commercial software and professional-networking businesses.
The results also build on the prior-year Q3 base, when overall revenue grew 7% and LinkedIn grew 8%, making the current 17% companywide and 10% LinkedIn growth rates a meaningful improvement in the reported run rate.
First-order effects
Microsoft reports $61.9 billion in quarterly revenue and $21.9 billion in net income, strengthening the financial contribution of its commercial software portfolio.
Office Commercial revenue rose 13% and LinkedIn revenue 10%, signaling continued growth across workplace software and the company’s professional-networking business.
Second-order effects
Sustained Office Commercial growth raises the competitive bar for enterprise productivity vendors: customers are continuing to spend within Microsoft’s established workflow footprint rather than treating productivity software as a purely discretionary category.
LinkedIn’s double-digit growth gives Microsoft another expanding commercial-intent channel alongside subscription software, supporting a broader mix of enterprise-facing revenue.
Third-order effects
If these growth rates persist, Microsoft’s scale across workplace software and professional identity could further concentrate enterprise software monetization in platforms that combine recurring subscriptions with adjacent business services.
The contrast with the slower growth reported a year earlier suggests that large incumbents can reaccelerate without abandoning mature product lines, reinforcing workflow-native expansion as a key industry strategy.
The trend: Enterprise technology providers are increasingly using entrenched workflow products and professional networks as durable bases for expanding recurring monetization.
More tidbits from @satyanadella on the Microsoft earnings call. • 65% of Fortune 500 companies are using the Azure service that delivers OpenAI's technology to businesses. • The GitHub coding assistant now has more than 1.8 million paid subscribers. https://www.axios.com/...
It is insane that GenAI is already propping up $MSFT Azure growth by 7 points. Massive financial impact on a massive revenue base happening now. Not just for infrastructure players. The early leader in GenAI monetization within consumer & enterprise software as well as cloud.
Microsoft beats expectations on cloud strength. Yes, but: Much of the AI boost is coming from the AI work being done on Azure's cloud rather thll thosean a AI-enabled copilots that Microsoft has started offering to customers in recent months. https://www.axios.com/...
More on $MSFT guidance for June. All that matters is Azure was a guide up. 1. Azure y/y revenue growth guide up, expecting 30-31% vs conenses 28.5% 2. Intelligent Cloud guided 1% above the Street. 3. Productivity and Business Processes guided 1% below the Street. 4. Personal...
$MSFT key guidance: Stock is unchanged after guide, up 4% in after hours. 1. Expect Azure growth in June to be 30-31% YoY, similar to March quarter. My take: Holding growth rates steady off of higher numbers is a win. 2. Expect FY24 margins to be up 2% YoY despite increase in …
Here are the revenue trends in @Microsoft's primary product lines, updated with today's quarterly results. AI contributed 7 points to 31% @Azure growth in Q3 FY24, lifting Server & Cloud Services (black line at the top) to 24% growth vs. the same quarter a year ago. [image]
Microsoft's revenue growth and adoption of its services are truly ungodly at its scale. It grew revenue 21% (31% Azure) and is actually capacity constrained to meet demand for AI and cloud services. Github Copilot has 1.8 million paying subscribers. Nvidia is eating good. [image]
Please don't miss out this morning that Microsoft's Cloud revenue was a whopping $35 billion (!) in one single quarter. AI is fueling further dependency on the cloud services of Big Tech companies and no EU rules are gonna change that. https://www.microsoft.com/...
Microsoft CEO Satya Nadella on gaming in Q3. “We are committed to meeting players where they are by bringing great games to more people on more devices. We set third quarter records for game streaming hours, console usage, and monthly active devices.” [image]
Xbox Series X|S sales year-over-year January-March 2023: 30% down January-March 2024: 31% down No wonder Microsoft is pivoting towards third-party. [image]
While I get around to my summary (again) of the MSFT gaming numbers, note this reporting on Nadella's comments about meeting gamers where they are. At this point, MSFT's strategy is plain as day. As I said before, what's the one thing MSFT can offer that their competitors cannot.…
Microsoft's Q3 2024 (fiscal) earnings: • 💻 Windows OEM revenue up 11% • 🖥️ Devices revenue down 17% • 👾 Gaming revenue up 51% • 🕹️ Xbox content + services rev up 62% • 🎮 Xbox hardware down 31% full details to come here 👇 https://www.theverge.com/...