FY17 Q3 - Productivity and Business Processes Performance- Investor Relations - Microsoft
Browse Prior Earnings Releases:
Earnings Release FY17 Q3
Productivity and Business Processes
Revenue increased $1.4 billion or 22%, driven by the acquisition of LinkedIn and higher revenue from Office 365.
• LinkedIn revenue was $975 million, primarily comprised of revenue from Talent Solutions.
• Office Commercial revenue increased $347 million or 7%, driven by higher revenue from Office 365 commercial, mainly due to growth in subscribers, offset in part by lower revenue from products licensed on-premises, reflecting a continued shift to Office 365 commercial.
• Office Consumer revenue increased $112 million or 15%, driven by higher revenue from Office 365 consumer, mainly due to growth in subscribers.
• Dynamics revenue increased 10%, due to higher revenue from Dynamics 365.
Operating income decreased $198 million or 7%, primarily due to higher operating expenses, offset in part by an increase in gross margin. Operating income included an unfavorable foreign currency impact of 3%.
• Operating expenses increased $993 million or 44%, mainly due to LinkedIn expenses. Operating expenses included $965 million related to our acquisition of LinkedIn, including $153 million of amortization of acquired intangible assets. Sales and marketing expenses increased $522 million or 44%, research and development expenses increased $363 million or 53%, and general and administrative expenses increased $108 million or 28%.
• Gross margin increased $795 million or 15%, driven by higher revenue, offset in part by higher cost of revenue. Gross margin included an unfavorable foreign currency impact of 2%. Cost of revenue increased $642 million or 50%, driven by our acquisition of LinkedIn and an increased mix of cloud offerings. Cost of revenue included $396 million related to our acquisition of LinkedIn, including $218 million of amortization of acquired intangible assets.
Download Earnings Related Files
Information contained in these documents is current as of the earnings date, and not restated for new accounting standards
Earnings Release Pages
Related Information
FY17 Earnings Release Schedule
- Q4-Thursday, July 20