Microsoft’s second quarter financial results for 2024, which ended on December 31, reported a total revenue of $62,020 million, reflecting an 18% increase compared to the same period last year. Additionally, the company achieved a net profit of $21,870 million according to GAAP accounting standards.
A significant change in this quarter’s financial report is Microsoft’s completion of the acquisition of Activision Blizzard, which falls under the More Personal Computing category in the report. CEO Satya Nadella stated that the company is now transitioning from discussing AI to actually implementing it across the entire tech stack of the company, resulting in numerous benefits for customers in all industries.
The revenue breakdown by business group is as follows:
– Intelligent Cloud: $25,880 million, representing a 20% increase in revenue, with Azure revenue specifically increasing by 30%.
– Productivity and Business Processes: $19,249 million, reflecting a 13% increase in revenue. Office 365 Commercial revenue increased by 17%, and the number of Microsoft 365 Consumer customers reached 78.4 million accounts.
– More Personal Computing: $16,891 million, showing a 19% increase in revenue. Windows OEM revenue increased by 11%, while hardware business declined by 9%. The Xbox group experienced a significant revenue increase of 61%, attributed to the consolidation of Activision Blizzard and the growth of the search business by 8%.
During the earnings call, CFO Amy Hood addressed analysts’ questions regarding Microsoft 365 Copilot, a service for which enterprise customers pay $30 per account per month. While she did not disclose the specific number of customers, Hood mentioned that the service is in its early stages but has shown promising trends of continuous revenue growth.
In summary, Microsoft’s second quarter financial results demonstrate substantial revenue growth across its business groups, fueled by notable acquisitions and the strategic implementation of AI. The company continues to innovate and provide value to its customers, positioning itself for future success.
TLDR: Microsoft’s Q2 2024 financial report showcased an 18% increase in total revenue, reaching $62,020 million. The acquisition of Activision Blizzard and the integration of AI throughout the organization were significant highlights. Revenue growth was observed in the Intelligent Cloud, Productivity and Business Processes, and More Personal Computing segments. Microsoft aims to further expand its offerings, such as the promising Microsoft 365 Copilot service.
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