Microsoft Q2 FY17 Earnings: Dynamics products and cloud services grew 7%

Microsoft today announced FYQ2 2017 earnings results. Revenue was $24.1 billion and the operating income was $6.2 billion. The Net income was $5.2 billion GAAP, and $6.5 billion non-GAAP.

Revenue in Productivity and Business Processes was $7.4 billion and increased 10% (up 12% in constant currency), with the following business highlights:

• Office commercial products and cloud services revenue increased 5% (up 7% in constant currency) driven by Office 365 commercial revenue growth of 47% (up 49% in constant currency)
• Office consumer products and cloud services revenue increased 22% (up 21% in constant currency) and Office 365 consumer subscribers increased to 24.9 million
• Dynamics products and cloud services revenue increased 7% (up 9% in constant currency) driven by Dynamics 365 revenue growth
• LinkedIn contributed revenue of $228 million for the period beginning on December 8, 2016

Microsoft has mentioned that Dynamics 365 paid seats increased 2x YoY. And 4 out of 5 Dynamics customers choose Dynamics 365. Microsoft’s LinkedIn acquisition will also benefit Dynamics in the coming quarters. If everything goes by Microsoft’s plan, Dynamics can become a serious business inside Microsoft just like Azure, Office and Windows.