Dynamics CRM & Commercial Cloud are highlights in Microsoft Q4 Earnings

Following the release of Microsoft’s Q4 earnings at the end of July, the Commercial Cloud recorded annualised revenue run rate which exceeds $8billion.

Microsoft's Q4 revenues were $22.2 billion. Gross margin, operating loss, and loss per share for the quarter were $14.7 billion, $(2.1) billion, and $(0.40) per share, respectively.

In a comment from CEO Satya Nadella in the Microsoft earnings call, it was noted that Microsoft’s investment in areas of differentiation has been beneficial, with Azure and Dynamics CRM growing by double digits. "Mainstreaming Dynamics into our engineering sales and marketing efforts gives us the ability to participate in this large and growing market in a more meaningful way,"

Amy Hood, executive vice president and chief financial officer at Microsoft added to this by saying  "We finished the fiscal year with solid progress against our strategic priorities, through strong execution and financial discipline, which is reflected in our results for the quarter and the year."

Microsoft’s goal is to continue to transform the commercial product mix to annuity cloud solutions and the company now has 75,000 partners transacting in their cloud. Commercial Cloud and Dynamics were the two highlights alongside products and services.

During the fiscal year of 2015, the company's revenue, gross margin, operating income, and diluted EPS were $93.6 billion, $60.5 billion, $18.2 billion, and $1.48 per share, respectively.  If you exclude the impact of impairment, integration and restructuring charges, full year operating income and EPS would have been $28.2 billion and $2.63, respectively.

Due to impairment, integration, and restructuring charges which were $10.0 billion in 2015 - about 78x the $127 million of FY 2014. This includes $7.5 billion of goodwill and asset impairment charges related to Phone Hardware, and $780 million of restructuring expenses, primarily costs associated with the restructuring announced on July 8, 2015.  There was also a charge of approximately $1.7 billion related to the previously announced integration and restructuring plan.

A full article on the earnings report can be viewed here


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