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Microsoft 3Q19 revenue up 14% on the back of strong cloud and, uh, Windows?

During the third quarter of the financial year 2019, which ran until March 31, 2019, Microsoft's revenue amounted to $ 30.6 billion from 14 to 14 percent year on year. Operating profit increased by 25 percent to $ 10.3 billion. Net income increased by 1 9 percent to $ 8.8 billion and earnings per share increased by 20 percent to $ 1.14. Microsoft has three reporting segments: Productivity and business processes (covering Office, Exchange, SharePoint, Skype, Dynamics and LinkedIn), Intelligent Cloud (including Azure, Windows Server, SQL Server, Visual Studio and Enterprise Services) and more personal computer ( covers Windows, hardware and Xbox as well as search and advertising). [19659003] The productivity group's revenue increased by 14 percent to $ 10.2 billion, with operating profit rising 28 percent to $ 4.0 billion. There is no one standing up in the division, but rather strong growth across the division. Commercial office products and service revenue increased by 12 percent, consumer revenue increased by 8 percent, Dynamics revenue increased by 13 percent, while revenue for Dynamics 365 increased by 43 percent and LinkedIn revenue increased by 27 percent. The number of commercial Office 365 sites has increased by 27 percent with over 180 million monthly active users, and subscribers for Office 365 for subscribers increased by 12 percent to 34.2 million. The move to the cloud continues to move where Microsoft makes its money: while commercial Office 365 revenue increased by 30 percent, office revenue fell by 19 percent. Intelligent cloud revenue increased…

 Microsoft 3Q19 increased by 14% on the back of strong cloud and, Windows?

During the third quarter of the financial year 2019, which ran until March 31, 2019, Microsoft’s revenue amounted to $ 30.6 billion from 14 to 14 percent year on year. Operating profit increased by 25 percent to $ 10.3 billion. Net income increased by 1

9 percent to $ 8.8 billion and earnings per share increased by 20 percent to $ 1.14.

Microsoft has three reporting segments: Productivity and business processes (covering Office, Exchange, SharePoint, Skype, Dynamics and LinkedIn), Intelligent Cloud (including Azure, Windows Server, SQL Server, Visual Studio and Enterprise Services) and more personal computer ( covers Windows, hardware and Xbox as well as search and advertising). [19659003] The productivity group’s revenue increased by 14 percent to $ 10.2 billion, with operating profit rising 28 percent to $ 4.0 billion. There is no one standing up in the division, but rather strong growth across the division. Commercial office products and service revenue increased by 12 percent, consumer revenue increased by 8 percent, Dynamics revenue increased by 13 percent, while revenue for Dynamics 365 increased by 43 percent and LinkedIn revenue increased by 27 percent. The number of commercial Office 365 sites has increased by 27 percent with over 180 million monthly active users, and subscribers for Office 365 for subscribers increased by 12 percent to 34.2 million. The move to the cloud continues to move where Microsoft makes its money: while commercial Office 365 revenue increased by 30 percent, office revenue fell by 19 percent.

Intelligent cloud revenue increased by 22 percent to $ 9.7 billion, with operating profit growing 21 percent to $ 3.2 billion. As always, there is more murkiness around these numbers than we would like, with Microsoft choosing not to give a hard dollar figure for Azure. Total server product and cloud service revenue increased by 27 percent, Azure increased by 73 percent and server products increased by 7 percent. This growth in server products is partly driven by the imminent lifespan of Windows Server 2008 and SQL Server 2008. The Enterprise Mobility installation base grew 53 percent to more than 100 million sites now handled through the service. Enterprise Services revenue increased by 4 percent.

And now for the more surprising result

more personal income increased by 8 percent to $ 10.7 billion and operating profit increased 25 percent to $ 3.2 billion. Windows OEM Pro revenue increased by 15 percent, which Microsoft refers to a mix of upgraded demand from the previous quarter that was ultimately met due to increased access to Intel processors and higher than expected demand for commercial systems. OEM non-Pro revenues declined by 1 percent, even though this is still ahead of the broader PC market, due to the fact that they had upgraded demand from previous quarters due to chip shortages. Windows subscriptions and service revenue increased by 18 percent.

Surface trading also grew by 21 percent to $ 1.3 billion. Total gaming revenue increased by 5 percent to $ 2.4 billion, with increased software and services revenue by 12 percent more than counteracting a decrease in hardware revenue. The number of Xbox Live monthly active users is also up 7 percent, to 63 million. Search income increased by 12 percent.

Gartner and IDC both noted that the firm’s hardware update powered by the imminent lifespan of Windows 7 is beginning to decline. This replacement cycle has arisen for Windows Commercial and OEM Pro revenues in recent quarters. The expectation is that this will soon end, but the Intel shortage deficiencies can undoubtedly cause the upgrade process to take longer than would otherwise have been the case.

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