Microsoft just released its latest earnings information for FY24 Q3. I always like to examine what information we can glean from a Microsoft 365 perspective, and this time, we got a lot. Here are the highlights.
Microsoft’s total revenue increased 17% to $61.86bn during the first three months of 2024, the third quarter of its financial year, surpassing analyst expectations of $60.88bn.
Earnings per share increased 20% to $2.94, ahead of the expected $2.83.
Microsoft Teams
20 Million+ Teams Phone users – note these are active users, not licenses sold (which is still a much bigger number). Up nearly 30% year-over-year. It will be interesting to see if the recently released Shared Calling will cause this activated seat number to continue to grow.
1 Million+ Teams Rooms — Microsoft has now surpassed a million Microsoft Teams Rooms. The last public number we had was 500,000 in the FY23 Q2 earnings call (January 24, 2023), which was 70% up year over year. So, we continued massive year-over-year growth.
We did not get a new Monthly Active Users number. “When it comes to Teams, we once again saw year-over-year usage growth.”. The last updated monthly active users number was in the FY24 Q1 results, 320 million monthly active users. 80% of the overall number of Office 365 monthly active users
Microsoft Copilot
Microsoft has added 150+ Copilot capabilities since the start of the year.
Nearly 60% of the Fortune 500 now use Copilot with companies like Amgen, bp, Cognizant, Koch Industries, Moody’s, Novo Nordisk, NVIDIA, and Tech Mahindra purchasing over 10,000 seats.
More than 65% of the Fortune 500 now use Azure OpenAI Service
Early adopters of Copilot show increased usage intensity, including a nearly 50% increase in Copilot-assisted interactions per user in Microsoft Teams.
Copilot in Windows is now available on nearly 225 million Windows 10 and Windows 11 PCs, up 2X quarter-over-quarter.
DAX Copilot (Nuance) is being used by more than 200 healthcare organizations, including Providence, Stanford Health Care, and WellSpan Health.
30,000 customers have used Copilot Studio to customize Copilot for Microsoft 365 or build their own, up 175% quarter-over-quarter.
Over 330,000 organizations—including over half of the Fortune 100—have used AI-powered capabilities in Power Platform.
Power Apps now has over 25 million monthly active users, up over 40% year-over-year.
GitHub Copilot is bending the productivity curve for developers.
GitHub Copilot now has 1.8 million paid subscribers, with growth accelerating to over 35% quarter-over-quarter, and continues to see increased adoption from businesses in every industry, including Itaú, Lufthansa Systems, Nokia, Pinterest, and Volvo Cars.
Microsoft 365
Office 365 commercial seats grew 8% year-over-year. Seat growth was again driven by our small and medium business and frontline worker offerings, although growth continued to moderate in SMB.
Office 365 commercial revenue increased 15% “in line with expectations, driven by healthy renewal execution, ARPU growth from continued E5 momentum, and early Copilot for Microsoft 365 progress” (Office commercial revenue grew 13% and 12% in constant currency.)
Office consumer revenue increased 4%, slightly below expectations. Microsoft 365 subscriptions grew 14% to 80.8 million.
LinkedIn revenue increased 10% and 9% in constant currency.
Check out the full earnings call/details here.
