Microsoft Q4 FY19 Earnings: Azure growth slows down a bit, revenue grew 64%
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Microsoft today announced FY19 Q4 earnings results. The revenue was $33.7 billion and the operating income was $12.4 billion. Revenue in Intelligent Cloud was $11.4 billion and it increased 19%, with the following business highlights:
Microsoft reported that Server products and cloud services revenue increased 22% driven by Azure revenue growth of 64%. Enterprise services revenue increased 4%. For comparison, Microsoft reported server products and cloud services revenue growth of 27% (up 29% in constant currency) and Azure revenue growth of 73% (up 75% in constant currency) in the last quarter.
Enterprise Mobility continues to be a great growth story for Microsoft and its installed base increased to 116 million which is a 41% growth. Server products revenue including Windows and SQL server grew 5%, thanks to Windows Server 2008 and SQL Server 2008 end of support.
The gross margin dollars of this division grew 19%. The gross margin percentage increased because of material improvements in Azure gross margin offset by an increased mix of cloud offerings.
