Microsoft’s Q1 2017 Earnings: Commercial Office revenue grows by 5%, Office 365 up 51%

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Microsoft today released the company’s earnings report for Q1 2017 (Fiscal Year).

Microsoft has continued its push to move Office customers from boxed software to their Office 365 product, with some analysts saying the company has reached an “inflection point” where recurring subscription revenue compensating for lost license sales.

Office commercial products and cloud services revenue grew 5% (up 8% CC). Office 365 commercial revenue grew 51% (up 54% CC) driven by Office 365 commercial seats which grew 40%.

Office commercial products revenue declined 14% (down 13% CC) reflecting continued adoption of cloud offerings by customers

There was continued installed base growth across Office, Exchange, SharePoint and Skype for Business.

Office 365 commercial monthly active users now number over 85 million, growing over 40%.

Office consumer products and cloud services revenue grew 8% (up 8% CC) benefiting from recurring subscription revenue.

Office 365 consumer subscribers now at 24.0 million users. Microsoft noted that they now had 45 million Outlook users on iOS and Android, a 70% increase YoY.

Dynamics products and cloud services revenue grew 11% (up 13% CC). Dynamics CRM Online paid seats grew more than 2.5 times and Microsoft noted that HP has replaced their own CRM solution with Dynamics.

More than 70% of Dynamics CRM and ERP enterprise customer adds chose Dynamics online.

You can find the full earnings report here.

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