FY17 Q1 - Productivity and Business Processes Performance- Investor Relations - Microsoft
Browse Prior Earnings Releases:
Earnings Release FY17 Q1
Productivity and Business Processes
Revenue increased $352 million or 6%, primarily due to higher revenue from Office 365. Revenue included an unfavorable foreign currency impact of 2%.
• Office Commercial revenue increased $264 million or 5%, driven by higher revenue from Office 365 commercial, mainly due to growth in subscribers, offset in part by lower revenue from products licensed on-premises, reflecting a continued shift to Office 365 commercial. Revenue included an unfavorable foreign currency impact of 3%.
• Office Consumer revenue increased $58 million or 8%, driven by higher revenue from Office 365 consumer, mainly due to growth in subscribers.
• Dynamics revenue increased 11%, mainly due to higher revenue from Dynamics CRM Online, driven by seat growth.
Operating income decreased slightly, primarily due to higher operating expenses. Operating expenses increased $35 million or 2%, mainly due to higher research and development expenses, driven by investments in cloud engineering. Operating income included an unfavorable foreign currency impact of 3%. Gross margin was flat, reflecting higher cost of revenue, offset by higher revenue. Gross margin included an unfavorable foreign currency impact of 2%. Cost of revenue increased $353 million or 34%, driven by an increased mix of cloud offerings.
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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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Related Information
FY17 Earnings Release Schedule
- Q2-Thursday, January 26
- Q3-Thursday, April 27
- Q4-Thursday, July 20