Browse Prior Earnings Releases:
Earnings Release FY24 Q1
Performance
Revenue increased $6.4 billion or 13% driven by growth in Intelligent Cloud and Productivity and Business Processes. Intelligent Cloud revenue increased driven by Azure and other cloud services. Productivity and Business Processes revenue increased driven by Office 365 Commercial. More Personal Computing revenue increased driven by growth in Gaming and Windows, offset in part by a decline in Devices.
Cost of revenue increased $850 million or 6% driven by growth in Microsoft Cloud, offset in part by a decline in Devices.
Gross margin increased $5.5 billion or 16% driven by growth across each of our segments.
• Gross margin percentage increased. Excluding the impact of the prior year change in accounting estimate for the useful lives of our server and network equipment, gross margin percentage increased 3 points driven by improvements across each of our segments.
• Microsoft Cloud gross margin percentage increased slightly to 73%. Excluding the impact of the change in accounting estimate, Microsoft Cloud gross margin percentage increased 2 points driven by improvement in Azure and other cloud services and Office 365 Commercial.
Operating expenses increased $168 million or 1% driven by marketing, LinkedIn, and cloud engineering, offset in part by a decline in Devices.
Operating income increased $5.4 billion or 25% driven by growth across each of our segments.
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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards