Microsoft Corporation Q2 FY2020 Earnings Call
· Earnings call transcript and AI-powered summary
Quarter Overview
- Microsoft reported another strong quarter, driven by broad commercial cloud strength and continued hybrid adoption.
- Revenue was $36.9 billion, up 14% year-over-year (15% in constant currency).
- Operating income rose 35% year-over-year, with earnings per share increasing 37% to $1.51.
- Commercial cloud revenue was $12.5 billion, up 39% year-over-year (41% in constant currency).
- Company-wide gross margin rose 5 points year-over-year to 67%, with improvements across all segments.
Business Segment Performance
Productivity and Business Processes
- Revenue: $11.8 billion, up 17% (19% in constant currency).
- Office 365 Commercial revenue grew 27% (30% constant currency) with 21% seat growth.
- Office Consumer revenue up 19%, supported by Office 365 subscription growth to 37.2 million users.
- Dynamics 365 revenue rose 42% (45% constant currency), showing strong multi-workload adoption.
- LinkedIn revenue grew 24% (26% constant currency) with 25% session growth and strong marketing solutions performance.
Intelligent Cloud
- Revenue: $11.9 billion, up 27% (28% constant currency).
- Azure revenue grew 62% (64% constant currency), accelerating quarter-over-quarter due to strong IaaS/PaaS consumption and expanding SaaS-based components.
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