After the market closed yesterday, Microsoft reported its financial results for the quarter ended June 30, 2024. Microsoft's overall revenue was $64.7 billion, up 15% year-over-year, and net income was $22.0 billion, up 10% year-over-year. As expected, Microsoft Cloud had a great quarter with quarterly revenue of $36.8 billion, up 21% year-over-year.
During the earnings conference call, Microsoft CEO Satya Nadella and CFO Amy Hood shared some interesting figures regarding the company's products and services.
Azure and other enterprise cloud services:
- Microsoft's cloud business demonstrated robust growth, with annual revenue exceeding $135 billion, a 23% increase year-over-year.
- The number of Azure Arc customers reached 36,000, marking a 90% rise.
- Azure AI customers surpassed 60,000, with a nearly 60% year-over-year increase and continued growth in average spending per customer.
- The integration of Microsoft's data and analytics tools with Azure AI saw a nearly 50% year-over-year increase in customer adoption.
- Microsoft Fabric now has over 14,000 paid customers, up 20% quarter-over-quarter.
- Teams Premium seats exceeded 3 million, a remarkable 400% increase year-over-year.
- The enterprise mobility and security installed base grew 10% to over 281 million seats.
Developer services:
- Over 77,000 organizations are now using GitHub Copilot, up 180% year-over-year, making it the most widely adopted AI-powered developer tool.
- GitHub's annual revenue run rate has reached $2 billion.
- Copilot accounted for over 40% of GitHub's revenue growth this year.
- Microsoft highlighted that Copilot is already a larger business than all of GitHub was when Microsoft acquired it.
Power Platform:
- Over 480,000 organizations have used AI-powered capabilities in Power Platform, up 45% quarter-over-quarter.
- Microsoft Power Platform now has 48 million monthly active users, up 40% year-over-year.
Copilot:
- Copilot customers increased more than 60% quarter-over-quarter. The number of Copilot customers with more than 10,000 seats more than doubled quarter-over-quarter.
- Over 50,000 organizations have used Copilot Studio, up over 70% quarter-over-quarter.
- More than 400 healthcare organizations have purchased DAX Copilot, up over 40% quarter-over-quarter.
- 40,000 organizations are now using Dynamics 365 Business Central for core ERP.
Microsoft Security solutions:
- Over 1,000 paid customers used Copilot for Security.
- Microsoft now has over 1.2 million security customers, and over 800,000 of them use 4 or more workloads, which is up 25% year-over-year.
- Microsoft Defender for Cloud has surpassed $1 billion in revenue over the past 12 months.
Consumer products and services:
- Windows 11 active devices increased 50% year-over-year.
- 1.5 million pieces of content are shared every minute on the LinkedIn platform, and video is now the fastest-growing format, with uploads up 34% year-over-year.
- LinkedIn Premium sign-ups increased by 51% this fiscal year.
- Consumers have used Copilot to create over 12 billion images and conduct 13 billion chats to date, up 150% since the start of 2024.
- Microsoft now has over 500 million monthly active users across its game platforms and devices.
- Fallout was the second most-watched title on the Amazon Prime platform ever, and hours played on Game Pass for the Fallout franchise increased nearly five-fold quarter-over-quarter.
Microsoft CFO Amy Hood revealed that capital expenditures, including finance leases, were $19 billion. Roughly half of that capital is used for infrastructure needed to build and lease data centers, while the remaining capital is mainly used for servers, both CPUs and GPUs.
Microsoft's Q4 2024 earnings report demonstrates a company firing on all cylinders, with strong growth across its cloud, productivity, and security offerings. The impressive adoption of AI-powered tools like GitHub Copilot and the expansion of its cloud infrastructure pave the way for a strong future for the company.
Source: Microsoft
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