Microsoft Q1 2016 Earnings Report: Revenue Down 12% YoY At $20.4 Billion

CEO Satya Nadella remains positive, says customer excitement for new devices is increasing.

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Microsoft announced its earnings today for the quarter ending September 30, 2015, with revenue at $20.4 billion, down 12 percent year over year.

The company says its Productivity and Business Processes earnings declined three-percent with revenue at $6.3 billion. More Personal Cloud Computing earnings also dropped — down 17 percent at $9.4 billion.

CEO Satya Nadella remained positive, releasing a statement that Microsoft is making strong progress across three focus areas.

“Customer excitement for new devices, Windows 10, Office 365 and Azure is increasing as we bring together the best Microsoft experiences to empower people to achieve more,” said Nadella.

Microsoft reports its Office 365 consumer subscriber base added three million during the quarter and that its Dynamics CRM Online Enterprise installed base is growing more than three times year over year. Monthly active users for Xbox Live was also up, growing 28 percent to 39 million.

Microsoft’s Intelligent Cloud business saw an eight-percent increase, reaching $5.9 billion, with revenue from server products and cloud services, and Azure more than doubling year over year. The company says its Enterprise Mobility customers more than doubled year over year as well, climbing to more than 20,000.

“We’re seeing great traction with businesses who want to bring Microsoft’s cloud, mobile device management technology and data analytics together to improve security and productivity,” said Microsoft COO Kevin Turner.

Microsoft’s webcast covering today’s earnings report will be hosted at 2:30 p.m. PT (5:30 p.m. ET): Microsoft FY16 Q1 Earnings conference call.

Microsoft Income Statement:

Microsoft income statement october 2015


Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.


About the author

Amy Gesenhues
Contributor
Amy Gesenhues was a senior editor for Third Door Media, covering the latest news and updates for Marketing Land, Search Engine Land and MarTech Today. From 2009 to 2012, she was an award-winning syndicated columnist for a number of daily newspapers from New York to Texas. With more than ten years of marketing management experience, she has contributed to a variety of traditional and online publications, including MarketingProfs, SoftwareCEO, and Sales and Marketing Management Magazine. Read more of Amy's articles.

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