Revenue increased $1.8 billion or 25%, primarily due to LinkedIn and higher revenue from Office.
• LinkedIn revenue increased $1.1 billion to $1.3 billion. LinkedIn revenue primarily consisted of revenue from Talent Solutions.
• Office Commercial revenue increased $552 million or 10%, driven by Office 365 commercial revenue growth, 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 $103 million or 12%, driven by Office 365 consumer revenue growth, mainly due to growth in subscribers.
• Dynamics revenue increased 10%, driven by Dynamics 365 revenue growth.
Operating income increased $284 million or 9%, primarily due to higher gross margin, offset in part by higher operating expenses.
• Gross margin increased $1.3 billion or 24%, driven by LinkedIn and growth in Office. Gross margin percentage decreased, primarily due to an increased mix of cloud offerings and LinkedIn, offset in part by gross margin percentage improvement in Office 365 commercial. LinkedIn cost of revenue increased $313 million to $432 million, including $222 million of amortization of acquired intangible assets.
• Operating expenses increased $1.0 billion or 41%, driven by LinkedIn expenses, investments in commercial sales capacity and cloud engineering, and the benefit of a legal settlement in the prior year. LinkedIn operating expenses increased $840 million to $1.1 billion, including $154 million of amortization of acquired intangible assets.