Microsoft’s financial results for Q3 FY22 (Jan – Mar 22) are in and, once again, they’re showing strong growth in all their key focus areas. They also listed several big name customers that they’re working with including:
- Cracker Barrel
and called out Boeing, Heinz, and Westpac among customers making “strategic” Azure commitments.
Satya Nadella always hits us with a good quote during the earnings call and this quarter’s was:
“The last two years have proven that every organization needs a digital fabric that connects the entire organization”
Let’s take a look at some of the numbers:
Revenue = $49.4 billion – up 18%
Operating income = $20.4 billion – up 19%
Really strong top line numbers as always – remember, this is for just 3 months!
Productivity & Business Processes
Revenue = $15.8 billion – up 17%
- Office 365 Commercial up 17%
- Dynamics 365 up 35%
- LinkedIn up 35%
Microsoft saw growth in SMB and frontline SKUs as well as increase in Revenue Per User – a key SaaS metric.
Office on-prem revenue was down 28%, continuing the downwards trend that we’ve been seeing for a couple of years now. It was noted as well that the end of Open Licensing has caused a drop in transactional license sales during the last quarter.
Revenue = $19.1 billion – up 26%
- Azure (and other cloud services) up 46%
- Server products up 5%
Another strong showing from Azure…with the number of $100 million Azure deals more than doubling over the previous year.
The server products increase includes Window Server & SQL Server in hybrid use cases (as well as Nuance) and again Microsoft mentioned the impact of Open Licensing’s end.
What else did we learn?
- Satya Nadella once again called out the performance of Cosmos DB, with 100%+ YoY growth for 3 quarters in a row.
- Power Platform, as a family, was up 72% year on year.
- Microsoft Viva has over 10 million monthly active users.
Overall this is another great performance from Microsoft, giving them good momentum as they move into their Q4 (April – June) which is always a busy time of year. It will be interesting to see the full FY results in July for sure!