Microsoft Corporation Q3 FY2024 Earnings Call
· Earnings call transcript and AI-powered summary
Quarter Overview
- Total revenue: $61.9B, up 17% year-over-year.
- EPS: $2.94, up 20% year-over-year.
- Microsoft Cloud revenue: $35.1B, up 23% year-over-year.
- Record Q3 driven by Azure, AI momentum, and strength across commercial and gaming segments.
Business Segment Performance
Productivity and Business Processes
- Revenue: $19.6B, up 12% year-over-year.
- Office 365 Commercial revenue up 15%, driven by E5 momentum and early Microsoft 365 Copilot adoption.
- Paid Office 365 Commercial seats up 8% year-over-year; SMB growth moderating.
- Office Consumer revenue up 4%; Microsoft 365 Consumer subscriptions reached 80.8M, up 14%.
- LinkedIn revenue up 10%, outperforming expectations; Premium revenue up 29% from strong AI feature uptake.
- Dynamics revenue up 19%; Dynamics 365 up 23% with broad workload adoption.
Intelligent Cloud
- Revenue: $26.7B, up 21% year-over-year.
- Azure and other cloud services revenue up 31%; AI services contributed 7 percentage points (vs. 6 points last quarter), though constrained by capacity limits.
- Server products and cloud services revenue up 24%.
- Enterprise Mobility + Security seats up 10% to 274M.
- On-prem server revenue up 6% due to strong renewals.
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