Microsoft Q1 FY19 Earnings: Azure revenue grew 76%, enterprise mobility install base reaches 88 million

Microsoft today announced FY19 Q1 earnings results. The revenue was $29.1 billion and the operating income was $10 billion. Revenue in Intelligent Cloud was $8.6 billion and it increased 24% (up 24% in constant currency), with the following business highlights:

Microsoft reported that Server products and cloud services revenue increased 28% (up 28% in constant currency) driven by Azure revenue growth of 76% (up 76% in constant currency). Enterprise services revenue increased 6% (6% in constant currency).

Enterprise Mobility is a strong growth area for Microsoft and their installed base increased to 88 million (up from 82 million) which is a 55% growth. Server products revenue including Windows and SQL server grew 10% (up 9% CC), thanks to customer demand for premium server versions and hybrid solutions. The sales increase was also slightly due to upcoming price increase of certain products in Q2.

The gross margin dollars of this division grew 28%. The gross margin percentage increased because of material improvements in Azure gross margin offset by an increased mix of cloud offerings.

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