Browse Prior Earnings Releases:
Earnings Release FY23 Q1
Productivity and Business Processes
Revenue increased $1.4 billion or 9%.
• Office Commercial products and cloud services revenue increased $633 million or 7%. Office 365 Commercial revenue grew 11% with seat growth of 14%, driven by 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 $105 million or 7% driven by Microsoft 365 Consumer subscription revenue. Microsoft 365 Consumer subscribers grew 13% to 61.3 million.
• LinkedIn revenue increased $527 million or 17% driven by Talent Solutions.
• Dynamics products and cloud services revenue increased 15% driven by Dynamics 365 growth of 24%.
Operating income increased $742 million or 10%.
• Gross margin increased $1.3 billion or 11% driven by growth in Office 365 Commercial and LinkedIn, as well as the change in accounting estimate. Gross margin percentage increased. Excluding the impact of the change in accounting estimate, gross margin percentage decreased slightly driven by sales mix shift to cloud offerings.
• Operating expenses increased $568 million or 13% driven by investments in LinkedIn and cloud engineering.
Revenue, gross margin, and operating income included an unfavorable foreign currency impact of 6%, 7%, and 9%, respectively. Operating expenses included a favorable foreign currency impact of 3%.
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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards