FY19 Q1 - Intelligent Cloud Performance - Investor Relations - Microsoft

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Earnings Release FY19 Q1

NarrativePower BI

Intelligent Cloud

Revenue increased $1.6 billion or 24%.

Server products and cloud services revenue increased $1.6 billion or 28%, driven by Azure. Azure revenue growth was 76%, due to higher infrastructure-as-a-service and platform-as-a-service consumption-based and per user-based services. Server products licensed on-premises revenue increased 10%, due to a higher mix of premium licenses for Windows Server and Microsoft SQL Server.

Enterprise Services revenue increased $79 million or 6%, driven by higher revenue from Premier Support Services and Microsoft Consulting Services.

Operating income increased $794 million or 37%.

Gross margin increased $1.3 billion or 28%, driven by growth in server products and cloud services revenue and cloud services scale and efficiencies. Gross margin percentage increased, due to gross margin percentage improvement in Azure, offset in part by an increased mix of cloud offerings.

Operating expenses increased $475 million or 19%, driven by investments in cloud and artificial intelligence engineering and commercial sales capacity.

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