Microsoft Office Revenue Presentation

Microsoft’s first report for the financial year revealed a huge growth in cloud revenue, but it also gave some interesting insights into Microsoft’s Office business.

The total of Office 365 consumer subscribers is now 24 million, while the commercial market has 85 million. In total, commercial revenue growth is up by 51%, and active users are up by 40%.

Office consumer products and cloud services revenue also grew by 8%, and Dynamics products experienced revenue growth of 11%.

“We are helping to lead a profound digital transformation for customers, infusing intelligence across all of our platforms and experiences,” said CEO Satya Nadella. “We continue to innovate, grow engagement, and build our total addressable market.”

Microsoft also states growth across Exchange, SharePoint and Skype for business, though individual numbers were not stated. Office commercial products revenue fell by 14% due to the adoption of cloud offerings.

Cloud Growth

This growth in cloud was one of the most noteworthy aspects of the report, driving Microsoft stock up to an all-time high of $60.

According to Nadella, over sixty percent of Fortune 500 hundred companies have at least three of Microsoft’s cloud offerings. The Fortune 500 adoption is 20% higher than last year.

In addition, Azure cloud services and data center tools grew 8% since this time last year, up to $6.4 billion. Azure revenue grew by 116% year-on-year. Furthermore, Azure usage has doubled in that period.

In all, it’s been a positive year for Microsoft, despite the 72% decline in phone revenue and 5% in gaming. Enterprise services managed a 1% revenue growth, and Windows OEM revenue managed to hold the same rate year-over-year.

“Our first quarter results showed continued demand for our cloud-based services,” said Amy Hood, executive vice president and chief financial officer. “We continue to invest, position ourselves for long-term growth, and execute well across our businesses.”

You can read the full details in the webcast here.