As CEO Satya Nadella said recently, “nothing shows up in just one quarter,” and a recent regulatory 10K filing provides a wider look at the business. One particular point of contention among analysts is Microsoft’s cloud performance. While some believe the company is now the leader of the cloud, others disagree. Now, we can see specific product breakdowns, which should shed some more light on that argument. We can now see that Microsoft’s server products and tools category pulled in $21.8 billion, up 13%. That includes the Azure cloud platform, which has been growing consistently since its release. However, other cloud-based products are also important. Commerical cloud revenue, which includes Office 365, Azure and Dynamics 365, rose from $9.5 billion to $14.9. Unsurprisingly, the products that have shifted most aggressively to the cloud seem to be growing the fastest. Microsoft’s Office suite, for example, pulled in $25.4 billion, a 7% increase from last year.
Xbox, Windows, LinkedIn, and Devices
Of course, Microsoft has also seen a revenue increase in other areas, while some have supped slightly. Xbox revenue for the 2017 fiscal year sits at around $9.3 billion, a decrease of 1.5% compared to last year’s 9.4. Revenue from devices fell more steeply, from $7.5 billion to 4.5. This category includes the company’s phone and Surface business, making the canning of the Nokia line the most likely explanation. More positive results were seen in the company’s advertising revenue, which saw a 14% increase to $6.97 billion, versus $6.1. Windows also pulled in $15.3 billion, an increase of 4%. Finally, LinkedIn made its first appearance on the filing, reporting $2.3 in revenue since Microsoft’s $26.2 billion acquisition closed in December. You can find more numbers in the full report, including employment statistics cross sales, operations, and more.
