Microsoft reported its financial results for the third quarter of September 2024, with a total revenue of $65.585 billion according to GAAP, showing a 16% increase compared to the same period last year. The company also recorded a net profit of $24.667 billion.
Amy Hood, the CFO of Microsoft, attributed the strong performance to the sales team and partners, with the company starting the financial year with Microsoft Cloud revenues reaching $38.9 billion, a 22% increase from the previous year.
The Productivity and Business Processes segment saw a 12% revenue increase to $28.317 billion, driven by growth in Microsoft 365 Commercial (13%), Microsoft 365 Consumer (5%), LinkedIn (10%), and Dynamics (14%). The Intelligent Cloud segment reported revenues of $24.092 billion, a 20% increase driven by Azure and cloud services growing by 33%. Meanwhile, the More Personal Computing segment generated $13.176 billion in revenue, with Xbox sales increasing by 61% due to the acquisition of Activision, and Windows OEM and hardware revenues increasing by 2%.
During the earnings call with analysts, Satya Nadella acknowledged challenges in data center deliveries affecting customer demand, but expressed optimism for improvement in the second half of the financial year. Amy Hood highlighted the ongoing high demand for cloud services from customers exceeding the company’s resources.
TLDR: Microsoft’s Q3 2024 financial results show strong revenue growth across segments, driven by Microsoft Cloud, Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. Challenges in data center deliveries expected to improve in the second half of the financial year.
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