Friday, April 22nd 2016
Microsoft Reports $20 Billion in Revenue for Q3 of FY2016
Microsoft Corp. today announced the following results for the quarter ended March 31, 2016:
During the quarter, Microsoft returned $6.4 billion to shareholders in the form of share repurchases and dividends.
This quarter's income tax expense included a catch-up adjustment to account for an expected increase in the full year effective tax rate primarily due to the changing mix of revenue across geographies, as well as between cloud services and software licensing. As such, the GAAP and non-GAAP tax rates were 25% and 24%, respectively.
"Our continued operational and financial discipline drove solid results this quarter," said Amy Hood, executive vice president and chief financial officer at Microsoft. "We remain focused on investing in our strategic priorities to drive long-term growth."
Revenue in Productivity and Business Processes grew 1% (up 6% in constant currency) to $6.5 billion, with the following business highlights:
- Revenue was $20.5 billion GAAP, and $22.1 billion non-GAAP
- Operating income was $5.3 billion GAAP, and $6.8 billion non-GAAP
- Net income was $3.8 billion GAAP, and $5.0 billion non-GAAP
- Earnings per share was $0.47 GAAP, and $0.62 non-GAAP
This quarter's income tax expense included a catch-up adjustment to account for an expected increase in the full year effective tax rate primarily due to the changing mix of revenue across geographies, as well as between cloud services and software licensing. As such, the GAAP and non-GAAP tax rates were 25% and 24%, respectively.
"Our continued operational and financial discipline drove solid results this quarter," said Amy Hood, executive vice president and chief financial officer at Microsoft. "We remain focused on investing in our strategic priorities to drive long-term growth."
Revenue in Productivity and Business Processes grew 1% (up 6% in constant currency) to $6.5 billion, with the following business highlights:
- Office commercial products and cloud services revenue grew 7% in constant currency driven by Office 365 revenue growth of 63% in constant currency
- Office consumer products and cloud services revenue grew 6% in constant currency with Office 365 consumer subscribers increasing to 22.2 million
- Dynamics products and cloud services revenue grew 9% in constant currency with Dynamics CRM Online seat adds more than doubling year-over-year
- Server products and cloud services revenue increased 5% in constant currency driven by double-digit annuity revenue growth
- Azure revenue grew 120% in constant currency with usage of Azure compute and Azure SQL database more than doubling year-over-year
- Enterprise Mobility customers more than doubled year-over-year to over 27,000, and the installed base grew nearly 4x year-over-year
- Windows OEM revenue declined 2% in constant currency, outperforming the PC market, driven by higher consumer premium device mix
- Surface revenue increased 61% in constant currency driven by Surface Pro 4 and Surface Book
- Phone revenue declined 46% in constant currency
- Xbox Live monthly active users grew 26% year-over-year to 46 million
- Search advertising revenue excluding traffic acquisition costs grew 18% in constant currency with continued benefit from Windows 10 usage
20 Comments on Microsoft Reports $20 Billion in Revenue for Q3 of FY2016
(Off Topic) And, after that nice quarter of income, they are still going to knock all the onedrive (excluding corporate and education) users back to 5GB; because, quoted from FAQ page, "We overcommitted with our free storage limits and we want to focus on delivering high-value productivity and collaboration experiences that benefit the majority of our users.". So, you want the consumer to shell out more to the MS company coffers, to upgrade back to what we had.
MS is smart(greedy), though, integrate onedrive into windows phones, tablets, desktops... anything that uses their OSes and let the user get use to it for a while; then, yank the storage away and then start charging for the space you had over 5GB.
(Back On Topic) Revenues on that cloud may double next quarter or two. Congrats to ya MS.
In all reality I have enjoyed windows phones for years and I do hope they will stay in smartphone business and not just go after surface book.
and few days ago microsoft reaffirmed that I want to keep my 15 GB free space
"As you know, the amount of storage that comes with most OneDrive accounts is changing from 15 GB to 5 GB. You previously confirmed your desire to keep your 15 GB of free storage (and the 15 GB camera roll bonus if you have it).* As a result, your account will not be affected by these changes.
I am sad about Windows Phone, though, but that is Microsoft's fault. They have taken too long with them, I fear they will stay as a niche phones, not even stuff like the upcoming HP's X3 Elite will change that.
Still can't figure out why they think not selling batteries and delaying updates, while making their exclusive apps cross platform, is a good idea.
But you cannot compete in market with two flagships and one totally low-end phone, spectrum needs to be more broard, yet they cancelled 750/850 and managed to get out the late 650, which has strange specs, when compared to previous gen.
And then there are contradictory statements - no no, we are in full support of mobile first, yada yada (Mr. Nadella) and then there is stuff like "Windows Phone is not a priority this year", when WP is already so low in market share. Whole Nokia hardware division purchase got really strange when they let go most of the people, including, if I understand right, actual engineers and designers, not just overlapping management/HR positions. Just a big money bleed.
Pretty sure that people also didnt like x20 series not being upgradable to Windows 10.
P.S.
I would say that the "appgap" doesn't exist anymore, so there are some good news.
I am sorry, I am just really disappointed . Now I know exactly why people call it a "failmarket" , it rightfully deserves so, in my opinion. The phones are great bang for the buck....but apart from that.... I guess if you only want to call from your phone it works fine, but any productivity on windows phone is pretty much horrible.
Txt and some multimedia formats are not build in, but it is hardly relevant.
I am happy with the shop; I don't use it at all except for 3-4 must have applications. Whatsapp, VLC, Office that's it. No games.
And that glorious camera!!!
Wonder what's behind our friend that thinks they are making money with the Shop?!