Microsoft Q3 2019 financials

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Confusingly, Microsoft refers to this quarter just ended as 'FY20 Q1'. Bizarre. But then it has always counted quarters differently to the rest of the world! Regardless, revenue and profit were up year over year, across the board. No mention of 'mobile' per se, of course, though I'd imagine that a sustantial part of the Office 365 subscriptions and OneDrive storage plans are now driven by mobile, on iOS, Android and (yes) the remaining Windows 10 Mobile users. 

From the Microsoft official press release:

REDMOND, Wash. — October 23, 2019 — Microsoft Corp. today announced the following results for the quarter ended September 30, 2019, as compared to the corresponding period of last fiscal year:

  • Revenue was $33.1 billion and increased 14%
  • Operating income was $12.7 billion and increased 27%
  • Net income was $10.7 billion and increased 21%
  • Diluted earnings per share was $1.38 and increased 21%

Microsoft returned $7.9 billion to shareholders in the form of dividends and share repurchases in the first quarter of fiscal year 2020, an increase of 28% compared to the first quarter of fiscal year 2019.

Revenue in Productivity and Business Processes was $11.1 billion and increased 13% (up 15% in constant currency), with the following business highlights:

  • Office Commercial products and cloud services revenue increased 13% (up 15% in constant currency) driven by Office 365 Commercial revenue growth of 25% (up 28% in constant currency)
  • Office Consumer products and cloud services revenue increased 5% (up 6% in constant currency) with continued growth in Office 365 Consumer subscribers to 35.6 million
  • LinkedIn revenue increased 25% (up 26% in constant currency)
  • Dynamics products and cloud services revenue increased 14% (up 16% in constant currency) driven by Dynamics 365 revenue growth of 41% (up 44% in constant currency)

Revenue in Intelligent Cloud was $10.8 billion and increased 27% (up 29% in constant currency), with the following business highlights:

  • Server products and cloud services revenue increased 30% (up 33% in constant currency) driven by Azure revenue growth of 59% (up 63% in constant currency)
  • Enterprise Services revenue increased 7% (up 8% in constant currency)

Revenue in More Personal Computing was $11.1 billion and increased 4% (up 5% in constant currency), with the following business highlights:

  • Windows OEM revenue increased 9% (up 9% in constant currency)
  • Windows Commercial products and cloud services revenue increased 26% (up 29% in constant currency)
  • Search advertising revenue excluding traffic acquisition costs increased 11% (up 13% in constant currency)
  • Xbox content and services revenue was relatively unchanged (up 1% in constant currency)  
  • Surface revenue decreased 4% (down 2% in constant currency)

Nothing outrageously noteworthy in all this, but it's good to see Microsoft still doing well. Still, the Surface revenue went down - and we're still hoping for something special from Andromeda the Surface Duo phone device in late 2020... Let's hope this doesn't get cancelled (again)!

Source / Credit: Microsoft