138 organizations have more than 100,000 Microsoft Teams users, MSFT FY2021 Q1 Results

Microsoft released its FY22 Q1 results yesterday. It is always interesting to keep an eye on what is being talked about in the results as it shows the areas Microsoft want to highlight.

Results for the quarter ended September 30, 2021, as compared to the corresponding period of last fiscal year:

• Revenue was $45.3 billion and increased 22%
• Operating income was $20.2 billion and increased 27%
• Net income was $20.5 billion GAAP and $17.2 billion non-GAAP, and increased 48% and 24%, respectively

22% growth beat market expectations. Azure and other cloud services grew 50% year over year in the quarter. Productivity and Business Processes (Dynamics, LinkedIn and Office 365), contributed $15.04 billion in revenue, up 22%. More Personal Computing business, (Windows, devices, gaming, search advertising) was up 12%. Microsoft Cloud quarterly revenue surpassed $20 billion for the first time, up 36% year over year.

Microsoft 365 and Microsoft Teams

The results cover all of Microsoft’s business, and Azure was a big focus. I like to look specifically at M365/Teams. We got no new Daily Active User or Monthly Active user figures, so the latest we have is still from July 2021, 250 million monthly active users, 80 million monthly active p2p and Phone calling users. We did get the following details from Satya on the earnings call:

• 138 organizations now have more than 100,000 users of Teams
• More than 3,000 organisations have more than 10,000 users
• All-up, the number of organizations with more than 10,000 users integrating their third-party and line-of-business apps with Teams increased 82% year-over-year
• Triple-digit year over year usage growth of Teams in frontline
• Calls originating from Teams chats increased 50% this quarter, compared to a year ago.

“Users” was not defined as daily or monthly active, but in the past, Microsoft has only counted “active” users rather than licenced or “auto signed in” users.

Operator Connect got a call out, which I still think is a much bigger deal than most people realise. Schlumberger, Westpac, ZF Group, REI, and SAP were called out as Teams Phone users.

Teams Connect Shared channels got a mention. Look out for a session on that at Microsoft Ignite next week, it will be a real improvement to cross-organisation collaboration in Teams. Satya even said “without switching tenants”, Microsoft always tried to play down the pain of “switching tenants” with the current guest access model.

Continued impressive growth. I hope we start to get some more detail on the number of licenced/active Teams Phone users with PSTN connectivity, as that is clearly one of the big potential areas of growth for Microsoft Teams. It’s also interesting to see the frontline and line of business apps usage growth.

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