Earnings Release FY22 Q3

Productivity and Business Processes

Revenue increased $2.2 billion or 17%.

• Office Commercial products and cloud services revenue increased $999 million or 12%. Office 365 Commercial revenue grew 17% driven by seat growth of 16%, with continued momentum in small and medium business and frontline worker offerings, as well as growth in revenue per user. Office Commercial products revenue declined 28% driven by continued customer shift to cloud offerings.

• Office Consumer products and cloud services revenue increased $150 million or 11% driven by Microsoft 365 Consumer subscription revenue. Microsoft 365 Consumer subscribers grew 16% to 58.4 million.

• LinkedIn revenue increased $875 million or 34% driven by a strong job market in our Talent Solutions business and advertising demand in our Marketing Solutions business.

• Dynamics products and cloud services revenue increased 22% driven by Dynamics 365 growth of 35%.

Operating income increased $1.2 billion or 19%.

• Gross margin increased $1.7 billion or 16% driven by growth in Office 365 Commercial and LinkedIn. Gross margin percentage was relatively unchanged. Excluding the impact of the change in accounting estimate, gross margin percentage increased 2 points driven by improvement across all cloud services.

• Operating expenses increased $565 million or 13% driven by investments in LinkedIn and cloud engineering.

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.