FY18 Q1 - Performance - Investor Relations - Microsoft

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Earnings Release FY18 Q1

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Performance

Revenue increased $2.6 billion or 12%, driven by growth in Productivity and Business Processes and Intelligent Cloud. Productivity and Business Processes revenue increased, driven by the acquisition of LinkedIn and higher revenue from Office. Intelligent Cloud revenue increased, primarily due to higher revenue from server products and cloud services. More Personal Computing revenue was relatively unchanged, with lower revenue from phones offset by higher revenue from Search advertising and Surface.

Operating income increased $993 million or 15%, primarily due to higher gross margin, offset in part by an increase in sales and marketing expenses and research and development expenses. Operating income included an operating loss of $294 million related to LinkedIn, including $372 million of amortization of intangible assets. Key changes in expenses were:

• Cost of revenue increased $434 million or 6%, mainly due to growth in our commercial cloud and LinkedIn, offset in part by a reduction in phone and Gaming cost of revenue.

• Sales and marketing expenses increased $594 million or 18%, primarily due to LinkedIn expenses.

• Research and development expenses increased $468 million or 15%, primarily due to LinkedIn expenses and investments in cloud engineering.

• General and administrative expenses increased $121 million or 12%, primarily due to LinkedIn expenses.

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

FY18 Earnings Release Schedule

  • Q2-Wednesday, January 31
  • Q3-Thursday, April 26
  • Q4-Thursday, July 19

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