☁️ Microsoft: Azure Gets an AI Boost
And Activision Blizzard officially joins the XBOX family
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Microsoft released its Q1 FY24 report (ending September 2023) last week.
AI continues to be the story of the year. The general release of Copilot (coming out this week) could lead to sustained growth based on the initial testing phase.
Piper Sandler went as far as calling Copilot an “iPhone moment” for Microsoft, comparable to the transition to the cloud that started in 2008.
CEO Satya Nadella explained:
“We are seeing productivity gains like we saw with developers and GitHub Copilot. […] For something completely new to have this level of usage already and this level of excitement is something we're very, very pleased with.“
But based on its impact on Microsoft’s performance this quarter, AI is already here.
Let's dive in.
Today at a glance:
Microsoft Q4 FY23.
Recent business highlights.
Key quotes from the earnings call.
What to watch looking forward.
Did you know LinkedIn makes up 7% of Microsoft’s revenue?
In case you missed it, check out our YouTube Channel, where we dive into LinkedIn’s recent growth and how it’s emerging as a platform of choice for content creators. If you enjoy watching these videos as much as we enjoy creating them, you're in for a treat!
1. Microsoft Q1 FY24
In our review of Microsoft’s previous quarter, I gave you a breakdown of the difference between:
Microsoft Cloud: All of Microsoft's cloud offerings across multiple segments. It grew +23% Y/Y in constant currency (showing no slowdown) to $31.8 billion, representing 56% of the company’s total revenue (compared to 54% in the previous quarter).
Intelligent Cloud: A specific segment focusing on public, private, and hybrid cloud solutions. It grew +19% Y/Y to $24.3 billion (an acceleration from +17% Y/Y in the previous quarter).
Azure—Microsoft’s cloud computing platform and infrastructure—is included in Intelligent Cloud, making it the focal point for investors.
The company also breaks down its revenue by significant products and services. Here’s a look at Q1 FY24. Azure is included in “Server products and cloud services.”