Microsoft Office users hit 59.7 million, net income of $21.9 billion  

Microsoft, the software maker, made $62 billion in revenue and a net income of $21.9 billion.

Revenue was up 18%, and net income increased by 33% in the second quarter of its 2024 fiscal financial results.  Microsoft’s Office division is once more performing well, with efficiency and commerce adding up to an income of 13% year-over-year. This was primarily driven by Office 365, which presently comes to 78.4 million, about 16% up year-over-year  Revenue from cloud services and office commercial goods climbed by $4.4 billion, or 13%. Office 365 Commercial revenue increased by 18%, mostly due to a 14% increase in seats.  

Growth in revenue per user and small- and medium-sized businesses and front-line worker services also contributed to the growth. Revenue from office commercial goods fell by 22% as a result of customers’ ongoing migration to cloud services. 

Microsoft 365 Consumer subscription revenue drove an 11% rise in revenue for Office Consumer products and cloud services, totaling $641 million., Microsoft 365 Consumer subscriptions increased by 15% to 59.7 million users.

A robust employment market in the Talent Solutions business and high demand for advertising in our Marketing Solutions business drove a $3.5 billion or 34% rise in LinkedIn revenue. 

Office and cloud income still rule incomparable, contributing about 60% of Microsoft’s general income. Whereas Windows OEM income is bouncing back, gadgets income from Surface deals has proceeded to decay this quarter. 

Microsoft cautioned that gadgets income would decay against this quarter, and it is down 9 percent. Microsoft CFO Amy Hood said on a profit call nowadays that this was superior to the company’s expectations, thanks to “stronger execution within the commercial segment.” Gadgets revenue is anticipated to decrease once more in Q3, 2024” 

Microsoft CEO Satya Nadella stated that “PC showcase unit volumes were at generally pre-pandemic levels,” so it’s likely that Surface essentially hasn’t recuperated as well. That’s despite Microsoft propelling its modern Surface Portable workstation Studio 2, Surface Portable workstation Go 3, and indeed Surface Go 4 in late final year. Microsoft’s device revenue also includes HoloLens and PC embellishments, and income has been declining for more than 12 months presently. 

Windows is doing way better, even though. OEM income, the cost that PC producers pay Microsoft to put Windows on portable workstations and PCs, is up 11 percent this quarter. Windows OEM income has endured all through Microsoft’s whole 2023 financial year, but typically presently two successive quarters of development compared to five continuous quarters of decays for gadgets income. Hood is expecting Windows OEM income to be “relatively flat” in the following quarter.