Microsoft's third-quarter 2024 sales are expected to increase 17% year-on-year to 9.62 trillion yen, with strong performance of AI-related products such as cloud services including Azure contributing to the significant increase in revenue
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Microsoft announced its financial results for the third quarter of 2024 (January to March). Revenue increased 17% year-on-year to approximately $61.9 billion (approximately 9.629 trillion yen), operating profit increased 23% year-on-year to approximately $27.6 billion (approximately 4.29 trillion yen), and net profit increased 20% year-on-year to approximately $21.9 billion (approximately 3.4 trillion yen).
FY24 Q3 - Press Releases - Investor Relations - Microsoft
https://www.microsoft.com/en-us/Investor/earnings/FY-2024-Q3/press-release-webcast
Microsoft Q3 2024: Surface and Xbox hardware take big hit - The Verge
Microsoft (MSFT) Q3 earnings 2024
Below are Microsoft's third quarter 2024 financial results (2024 As Reported (GAAP)). Revenue, operating income, and net income all increased compared to the same period last year (2023 As Reported (GAAP)).
The table below summarizes the percentage change Y/Y (GAAP) in revenue for each division. Office Commercial products and cloud services increased 4% year-on-year, while Office 365 increased 15% year-on-year and Dynamic 365, a SaaS-based sales support system, increased 23% year-on-year, showing that software-related revenues have continued to grow from the previous year. In addition, AI-related Microsoft Cloud increased 23% year-on-year, and other cloud services such as Azure increased 31% year-on-year, showing significant growth due to the introduction of AI in cloud services and business software products as a whole.
'The significant revenue growth for Microsoft Cloud this quarter was driven by our sales teams and strong collaboration with our partners,' said Microsoft CFO Amy Hood.
In addition, Microsoft, which acquired major game maker Activision Blizzard in October 2023, has seen rapid growth in Xbox content and services sales, up 62% year-on-year. However, Xbox hardware sales declined sharply by 31% year-on-year, contributing to an overall increase in gaming revenue of 51% year-on-year.
'We're expanding Activision Blizzard games to new platforms,' said Microsoft CEO Satya Nadella. 'In fact, as of early April 2024, seven Activision Blizzard games were ranked among the top 25 grossing games on the PlayStation Store, more than any other publisher.'
It was also reported that sales of devices, such as the Surface series, PC accessories, and HoloLens headsets, decreased 17% year-on-year. Meanwhile, in the second quarter of 2024, it was reported that sales of the Windows division were lower than those of the gaming division, but in the third quarter, Windows OEM revenue increased 11% year-on-year, exceeding sales of the gaming division, and the Windows division has returned to being Microsoft's third largest business.
In addition to discussing Microsoft's core financial health, Nadella also spoke about security issues, reporting that 'security is our top priority and underpins every layer of our technology stack. We are committed to the critical work of security, prioritizing it above all other feature development and investments.'
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