Revenue increased $1.8 billion or 28%, driven by LinkedIn and higher revenue from Office.
• LinkedIn contributed revenue of $1.1 billion, primarily comprised of revenue from Talent Solutions.
• Office Commercial revenue increased $516 million or 10%, 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.
• Office Consumer revenue increased $96 million or 12%, driven by higher revenue from Office 365 consumer, mainly due to growth in subscribers.
• Dynamics revenue increased 13%, primarily due to higher revenue from Dynamics 365.
Operating income increased $101 million or 3%, primarily due to higher gross margin, offset in part by higher operating expenses.
• Gross margin increased $1.2 billion or 25%, primarily due to LinkedIn and growth in Office. Gross margin percentage decreased due to an increased mix of cloud offerings and LinkedIn, offset in part by gross margin percentage improvements in Office 365 commercial. Cost of revenue included $411 million related to LinkedIn, including $218 million of amortization of acquired intangible assets.
• Operating expenses increased $1.1 billion or 54%, driven by LinkedIn expenses of $1.0 billion, including $154 million of amortization of acquired intangible assets.