Microsoft reports Q4 revenue up 15% YoY to $64.7B, net income up 10% YoY to $22B, Office Commercial revenue up 12% YoY, and LinkedIn revenue up 10% YoY
REDMOND, Wash. — July 30, 2024 — Microsoft Corp. today announced the following results for the quarter ended June 30, 2024 …
Microsoft
Context & Ripple Effects
Microsoft’s latest quarter follows 13% revenue growth in its fiscal Q1 and 18% growth in fiscal Q2, keeping the company on a run of double-digit top-line expansion across the reported fiscal year.
The report also extends a pattern of growth in commercial productivity software and LinkedIn: Office Commercial rose 12% and LinkedIn 10%, versus 15% and 9%, respectively, in the preceding Q2 report.
First-order effects
- Microsoft closes the quarter with $64.7B in revenue and $22B in net income, reinforcing the scale of its commercial operations.
- Office Commercial and LinkedIn each add double-digit revenue growth, directly supporting Microsoft’s productivity-suite and professional-network businesses.
Second-order effects
- Growth across Office Commercial and LinkedIn gives Microsoft a broader commercial revenue base rather than dependence on a single reported product line.
- The results raise the operating benchmark for enterprise-software and professional-network rivals competing for business workflow and hiring-related budgets.
Third-order effects
- If this pattern persists, it supports a market structure in which large platforms monetize several connected business workflows—productivity tools and professional identity—under one commercial relationship.
- The key uncertainty is durability: the reported growth rates show continued demand, but the supplied results alone do not establish whether growth is accelerating or how much comes from pricing versus customer expansion.
The trend: This is one data point in the continued monetization of business workflows through integrated productivity and professional-network platforms.
Related: Workflow-native monetization · Commercial-intent density · Microsoft · LinkedIn · Microsoft reports Q2 revenue up 18% YoY to $62B, net income up 33% YoY
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Discussion
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Pure Xbox
Ben Kerry
on x
Activision Blizzard Continues To Drive Massive Uptick In Revenue For Xbox
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@munster_gene
Gene Munster
on x
More capex is a good thing. $MSFT Capex up 51% YoY may pressure margins in the near-term, and long-term push them higher. Good news for $NVDA, $TSM in 2024.
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@modestproposal1
@modestproposal1
on x
MSFT's lawyers added “and training” to other planned capital uses [image]
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@jaminball
Jamin Ball
on x
Microsoft over and over again on the earnings call: DEMAND FOR AZURE AI FAR OUTSTRIPPED SUPPLY must have been said 10+ times. Theme of the call “we're capacity constrained” On CapEx - will continue build out as long as demand signals persist, which as of now are very strong
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@jaminball
Jamin Ball
on x
Some data / stats on AI related products at Microsoft. Real revenue! Azure AI Services - $5b run rate up 900% YoY - 60k customers up 60% YoY - Responsible for ~8% of overall Azure growth this Q Developer Tools - GitHub at $2b run rate (It was ~$1b in Sept '22) - GitHub
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@ericjackson
Eric Jackson
on x
The # of organizations using MSFT AI tools was up 45% q/q
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@munster_gene
Gene Munster
on x
$MSFT beat on 11 of 12 operating metrics. The only one they missed was Intel Cloud (Azure) by 0.6%. The result; Stock is down 7%. This defines pressure point.
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@ericjhonsa
Eric Jhonsa
on x
$MSFT spent $19B on capex in FQ4, up from $14B in FQ3 and $10.7B a year ago. They guided in April for capex to be up “materially” Q/Q in FQ4, but didn't say by how much.
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@stephanie_link
Stephanie Link
on x
$MSFT: wasn't perfect. It needed to be given its 11% ytd gain against the $IGV up 3.2%. Azure is 43% of TR with 50% of the expected revenue growth. 36x against high expectations. Not horrible but a recalibration.
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@thetranscript_
@thetranscript_
on x
$MSFT CFO: “we've talked about it now for quite a few quarters, constrained on AI capacity. And because of that, actually, we've, to your point, signed up with third parties to help us as we are behind with some leases on AI capacity”
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@munster_gene
Gene Munster
on x
While AI stocks will likely be down tomorrow on the Azure's miss, I believe the AI trade is intact. Big tech infrastructure spending continues to push down harder on the AI spring. Microsoft's critical Capex number was $13.8B, 5% higher than the Street and up 55% YoY. $MSFT,
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@ashtom
Thomas Dohmke
on x
We did not build AI just for the sake of having AI. We built GitHub Copilot for the sake of developer happiness. As it turns out, focusing on developer happiness is a solid strategy. Today, in Microsoft earnings @satyanadella announced: “Copilot is driving GitHub growth, and all …
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@benbajarin
Ben Bajarin
on x
Long tweet: Here are all the talking points from the @Microsoft earnings call about AI capacity constraints. - Nadella mentioned that Azure AI service demand remained higher than available capacity. - Hood noted that Azure growth included 8 points from AI Services,
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@marypcbuk.bsky.social
Mary Branscombe
on bluesky
Microsoft hit its numbers except analysts wanted it to more than hit the numbers; 29% increase in cloud (8 from AI) when they wanted another 31% despite Q4 always being a bit down *because Q4* — or maybe the street doesn't like Microsoft giving staff bonuses that are slanted to…
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@divestech
Dan Ives
on x
Biggest focus from MSFT call was that Azure growth will accelerate in the second half of the year off a 29% growth rate in FY1Q. AI spend accelerating and cloud story will grow. Clue to the big AI puzzle: MSFT expects significant monetization from cloud in 2025...very important 🏆
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Pure Xbox
Ben Kerry
on x
Xbox Console Sales Struggling As Hardware Revenue Nosedives At Microsoft
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@tomwarrenuk
Tom Warren
on threads
Microsoft CFO Amy Hood guidance for Q2 FY25: • Windows OEM: “flat in line with PC market” • Xbox content and services: “low to mid 50s, driven by Activision” • Gaming : “mid 30s, 40 points from Activision” • Xbox hardware: “will again decline YoY” https://www.theverge.com/...
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@tomwarren
Tom Warren
on x
Microsoft CEO Satya Nadella says in gaming the company “now have over 500 million monthly active users across platforms and devices. Our content pipeline has never been stronger.”
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@mitchyd
Mitch Dyer
on x
$22 billion in profit, Activision acquisition almost paid for itself, and still Xbox laid off thousands and closed several studios. This industry is so busted, man.
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r/xbox
r
on reddit
Microsoft's cloud revenues rule again in Q4, as Surface continues to dip