FY19 Q3 - Intelligent Cloud Performance - Investor Relations - Microsoft

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Earnings Release FY19 Q3

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Intelligent Cloud

Revenue increased $1.8 billion or 22%.

Server products and cloud services revenue, including GitHub, increased $1.7 billion or 27%, driven by Azure. Azure revenue growth was 73%, due to higher infrastructure-as-a-service and platform-as-a-service consumption-based and per user-based services. Server products revenue increased 7%, due to continued demand for premium versions and hybrid solutions, and GitHub.

Enterprise Services revenue increased $53 million or 4%, driven by growth in Premier Support Services.

Operating income increased $554 million or 21%.

Gross margin increased $1.2 billion or 21%, driven by growth in server products and cloud services revenue and cloud services scale and efficiencies. Gross margin percentage decreased slightly, due to an increased mix of cloud offerings, offset in part by gross margin percentage improvement in Azure.

Operating expenses increased $598 million or 22%, driven by investments in cloud and artificial intelligence (“AI”) engineering, GitHub, and commercial sales capacity.

Revenue, gross margin, and operating income included an unfavorable foreign currency impact of 2%.

IMPORTANT NOTICE TO USERS (summary only, click here  for full text of notice); All information is unaudited unless otherwise noted or accompanied by an audit opinion and is subject to the more comprehensive information contained in our SEC reports and filings. We do not endorse third-party information. All information speaks as of the last fiscal quarter or year for which we have filed a Form 10-K or 10-Q, or for historical information the date or period expressly indicated in or with such information. We undertake no duty to update the information. Forward-looking statements are subject to risks and uncertainties described in our  Forms 10-Q and 10-K.

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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards

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