Let’s take a look at Microsoft’s financial results for Q3 FY24 (Jan – Mar 24) and, in a not surprising move at all – they’re pretty good!
Headline Numbers
Revenue = $61.9 billion (17% increase)
Net income = $21.9 billion (20% increase)
Within that, “Microsoft Cloud” was $35.1 billion, an increase of 23% year on year.
Productivity & Business Processes
Revenue = $19.6 billion (up 12%)
- Office 365 Commercial revenue increased 15%
- Commercial seats grew 8% driven by SMB and Frontline SKUs again
- LinkedIn increase 10%
- Dynamics 365 grew 19%
Intelligent Cloud
Revenue = $26.7 billion (up 21%)
Azure grew 31% – yet again the growth percentage increases for another quarter. Interestingly, server licenses were up 6% due to hybrid and BYOL licensing.
Earnings Call Highlights
- “Copilot” features 47 times in the transcript
- Office 365 ARPU (Average Revenue Per User) grew thanks to E5 and Copilot
- Enterprise Mobility & Security (EMS) now has 274 million seats, up 10%
- Azure Arc now has 33,000 customers
- The average size and length of Azure deals has increased
- The number of 100 million dollar-plus Azure deals increased over 80% year-over-year (YoY) while the number of 10 million dollar-plus deals more than doubled
- Over 11,000 customers for Microsoft Fabric <– How many of those are simply Power BI Premium users who have moved over early?
- 30,000 organisations using Copilot for Studio to customize Copilot for Microsoft 365 and/or make their own
- PowerApps users are now at 25 million per month, a 40% increase YoY
Cloudy with a chance of Licensing 