Browse Prior Earnings Releases:
Earnings Release FY22 Q3
Performance
Revenue increased $7.7 billion or 18% driven by growth across each of our segments. Intelligent Cloud revenue increased driven by Azure and other cloud services. Productivity and Business Processes revenue increased driven by Office 365 Commercial and LinkedIn. More Personal Computing revenue increased driven by Windows and Search and news advertising.
Cost of revenue increased $2.6 billion or 20% driven by growth in Microsoft Cloud.
Gross margin increased $5.1 billion or 18% driven by growth across each of our segments.
• Gross margin percentage decreased slightly. Excluding the impact of the change in accounting estimate for the useful lives of our server and network equipment, gross margin percentage increased 1 point driven by improvements in Productivity and Business Processes and Intelligent Cloud.
• Microsoft Cloud gross margin percentage decreased slightly to 70%. Excluding the impact of the change in accounting estimate, Microsoft Cloud gross margin percentage increased 3 points driven by improvement across our cloud services, offset in part by sales mix shift to Azure and other cloud services.
Operating expenses increased $1.8 billion or 15% driven by investments in cloud engineering, LinkedIn, and commercial sales.
Key changes in operating expenses were:
• Research and development expenses increased $1.1 billion or 21% driven by investments in cloud engineering.
• Sales and marketing expenses increased $513 million or 10% driven by investments in commercial sales and LinkedIn. Sales and marketing included a favorable foreign currency impact of 3%.
• General and administrative expenses increased $153 million or 12% driven by investments in corporate functions. General and administrative included a favorable foreign currency impact of 2%.
Operating income increased $3.3 billion or 19% driven by growth across each of our segments.
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Information contained in these documents is current as of the earnings date, and not restated for new accounting standards