Microsoft revenue dips 10% to $23.8 bn in Dec quarter

Microsoft in Q2Software major Microsoft today said its revenue fell 10 percent to $23,796 million in its second quarter ended 31 Dec. 2015.

The net income of Microsoft – headed by CEO Satya Nadella – dropped 15 percent to $4,998 million.

“Businesses are using the Microsoft Cloud as their digital platform to drive their transformation agendas,” said Satya Nadella, chief executive officer at Microsoft. “Businesses are also piloting Windows 10, which will drive deployments beyond 200 million active devices.”

Microsoft revenue in Productivity and Business Processes was $6.7 billion (-2 percent).

HIGHLIGHTS OF MICROSOFT REVENUE

Productivity and Business Processes dips 2% to $6.7 billion
Office Commercial revenue drops 1%
Office 365 revenue increases 70%
Office consumer revenue declines 14%
Office consumer subscribers increase to 20.6 million
Dynamics business grows 3%
Intelligent Cloud up 5% to $6.3 billion
Enterprise Services revenue increases 10%
More Personal Computing  revenue dips 5% to $12.7 billion
Devices revenue drops 26%
Surface tablet revenue increases 22%

Office commercial products and cloud services revenue rose 5 percent driven by Office 365 revenue growth of nearly 70 percent.

Microsoft Office 365 consumer subscribers increased to 20.6 million.

Dynamics revenue grew 11 percent with Dynamics CRM Online seat adds more than doubling.

Revenue in Intelligent Cloud grew 5 percent to $6.3 billion.

Server products and cloud services revenue grew 10 percent.

Azure revenue grew 140 percent with revenue from Azure premium services growing nearly 3x.

Over one third of the Fortune 500 have chosen our Enterprise Mobility solutions, up nearly 3x.

Microsoft revenue in More Personal Computing declined 5 percent.

Windows OEM revenue declined 5 percent.

Surface revenue increased 29 percent driven by the launch of Surface Pro 4 and Surface Book.

Phone revenue declined 49 percent.

Search advertising revenue excluding traffic acquisition costs grew 21 percent with continued benefit from Windows 10 usage.

Xbox Live monthly active users grew 30 percent to 48 million.

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