The Cloud still being strong as a Bear 🐻: Satya Nadella reports on the “Record Quarter”
Satya Nadella, Chairman and CEO of Microsoft, reported to participants in a Conference Call on Microsoft’s financial results for the second quarter of fiscal year 2024. He spoke of a “record quarter” that was “driven by the continued strength of the Microsoft Cloud.”
The most important Results of the second Quarter of 2024 - compared to the same Quarter of the Previous Year
Microsoft reported revenue of $62 billion, which increased by almost 18% compared to the same quarter last year. This figure is particularly significant if you look at the same quarter in the two previous years: in FY23 Q2, this increase was only 2% compared to FY22 Q2!
The operating income amounted to $27 billion in the second quarter of 2024, which represents an increase of 32% (also compared to FY23 Q2). An increase of almost 34% was recorded in net income - this amounted to $21.9 billion in FY24 Q2, exceeding all expectations. Earnings per share amounted to $2.93 - which means an increase of 33%.
Amy Hood (Microsoft CFO) commented: “Results exceeded expectations and we delivered another quarter of double-digit top and bottom-line growth. Strong execution by our sales teams and partners drove share gains again this quarter across many of our businesses.”
Significant Growth in Dynamics Products and Cloud Services Revenue
Dynamics products and cloud services revenue rose by 21%, due in particular to revenue of Dynamics 365, which increased by as much as 27%.
In the Intelligent Cloud segment, revenue in FY24 Q2 amounted to $25.9 billion, which is 20% higher than in the same quarter of the previous year.
Revenue from server products and cloud services increased by 22%, driven by 30% Azure and other cloud services revenue growth.
|
Revenue (total) |
Operating Income |
Net Income |
Earnings per Share |
| FY24 Q2 |
$62 billion |
$27 billion |
$21.9 billion |
$2,93 |
| FY23 Q2 |
$52.7 billion |
$20.4 billion |
$16.4 billion |
$2,20 |
| Compared to FY23 Q2 |
+ 18% |
+ 32% |
+ 34% |
+ 33% |
New Customers and improved Productivity thanks to integrated AI Functions
Satya Nadella: “We’ve moved from talking about AI to applying AI at scale. By infusing AI across every layer of our tech stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector.”
Microsoft 365 Copilot: comparatively fast Acceptance
Nadella also recently commented on the AI solution Copilot, which companies have been able to use since the beginning of November: “Two months in, we’ve seen faster adoption than either our E3 or E5 suites.”
The cloud being strong as a bear has made a decisive contribution to Microsoft's “record quarter”.