Microsoft released their earnings report this week and have reported $29.1 billion in revenue with huge growth in places like Office 365, cloud and gaming. While we saw a little percentage drop in Azure revenue which is to be expected as those numbers hire the percentage will start to decrease a bit that’s very normal but for me, the news of the earnings report was Office 365.

Office 365 is reporting a growth of over three million users per month. To break it down further Microsoft Office 365 commercial revenue grew 36% and passed the 155 million monthly active users mark. On the consumer side, Microsoft is reporting 32.5 million active subscriptions.

That is 187.5 million subscribers at a growth rate of about 3 million users a month it’s very possible Microsoft will have anywhere between 195 million and 200 million monthly active Office 365 subscribers between consumer and commercial subscriptions.

I would like to point out the 35% growth in Office 365 revenues and the Dynamics 365 revenue growth of 51% since these are add-on services to commercial users this shows that Microsoft is successful in extracting more revenue per month from its users once they get you to subscribe not only are they getting a subscription every month they are selling you additional 365 services.

Some other key points from the earnings report I found interesting

  • LinkedIn grew 34% with record levels of engagement and job postings
  • Xbox hardware revenue grew 94%
  • Surface had another billion dollar quarter
  • Search advertising revenue grew 17%

Overall another great quarter for Microsoft.