Microsoft had a strong second quarter of 2019, the company revealed in its latest quarterly earnings report.
Altogether, the Redmond, Washington tech giant generated $33.7 billion USD (about $43.9 billion CAD) in revenue in Q2 2019. This surpassed Wall Street’s estimate of $32.7 billion (roughly $42.6 billion CAD) and marked a 12 percent increase from Q2 2018.
Overall earnings primarily came from three major categories — Intelligent Cloud, Productivity and Business Processes (which includes Office) and More Personal Computing (comprised of Windows, Surface, Xbox and search).
To start, Intelligent Cloud generated $11.4 billion (roughly $14.8 billion CAD) in revenue in Q2 2019, up 19 percent from last year. In particular, Microsoft’s Azure cloud computing platform grew 64 percent from the same period in 2018. That said, Microsoft didn’t cite specific earnings for Azure during this quarter, which also marked a drop from the 73 percent growth demonstrated in Q2 2018.
Meanwhile, Productivity and Business Processes brought in $11 billion USD (about $14.3 billion CAD) of its overall revenue for this quarter. This marks a 14 percent year-over-year increase. Specifically, Microsoft says Office 365, LinkedIn, and Dynamics all posted significant gains in the quarter, with Office 365’s consumer version reaching 34.8 million subscribers.
Finally, the More Personal Computing business segment ended the quarter with $11.28 billion (around $14.7 billion CAD) in revenue, above the analyst-projected $10.99 billion USD (roughly $14.3 billion CAD).
In this category, Windows OEM and search advertising revenue rose nine percent each, while Windows commercial products and cloud services revenues increased by 13 percent and Surface revenue jumped 14 percent. However, Microsoft’s overall gaming revenue dropped 10 percent, with Xbox, in particular, seeing a three percent dip.