Microsoft Reports 1st Quarter Financial Results for Fiscal Year 2024, with Total Revenue of $56.517 billion, representing a 13% increase from the same period last year. The net profit, according to GAAP standards, amounted to $22.291 billion.
The revenue breakdown by business segment is as follows:
Productivity and Business Processes generated $18.592 billion, marking a 13% increase, driven by a growth of 18% in Office 365 Commercial and 8% in LinkedIn.
Intelligent Cloud contributed $24.259 billion, with server and cloud services revenue increasing by 21%, and Azure specifically experiencing a 29% growth.
More Personal Computing accounted for $13.666 billion, reflecting a 3% increase. The Windows segment saw a 5% growth, while hardware revenue declined by 22%, and search business revenue increased by 10%.
Amy Hood, CFO of Microsoft, highlighted that the Azure OpenAI Service has already gained 18,000 customers, thereby bolstering the growth of Azure by approximately 3%. This comes at a time when customers are increasingly controlling their cloud expenditure.
Other notable disclosures during the financial report include surpassing 320 million accounts for Teams and the return of Windows revenue growth after a continuous decline for five quarters.
In conclusion, Microsoft’s first-quarter performance demonstrates substantial revenue growth across its various business segments. Azure’s expansion, driven by the Azure OpenAI Service and customers’ increasing control over cloud spending, is particularly noteworthy. Additionally, the growth in Teams users and the resurgence of Windows revenue contribute positively to Microsoft’s overall performance.
TLDR: Microsoft’s 1Q FY2024 financial report showcases a 13% increase in total revenue, reaching $56.517 billion. The Productivity and Business Processes segment grew by 13%, driven by Office 365 Commercial and LinkedIn. Intelligent Cloud saw a remarkable 21% increase, primarily due to Azure’s significant growth of 29%. More Personal Computing experienced a modest 3% growth, with Windows revenue bouncing back and hardware declining. Amy Hood shared that the Azure OpenAI Service acquired 18,000 customers, contributing to Azure’s growth amidst stricter cloud spending control. Additional highlights include Teams surpassing 320 million accounts and a resurgence in Windows revenue after five consecutive quarters of decline.