Microsoft released yesterday its earnings reports for the third quarter of its 2017 fiscal year, and Office 365 revenue was once again one of the main highlights. Overall, revenue in Productivity and Business Processes reached $8 billion during Q3 (up 22% year-over-year), and Microsoft CEO Satya Nadella emphasized the following points during the company’s earnings call:
We crossed a major milestone with more than 100 million monthly active users of Office 365 commercial. Office 365 commercial seats grew 35 percent year-over-year, and revenue is up 45 percent in constant currency.
Both Office 365 commercial and consumer businesses were up, and the company shared the following details in the press release:
- Office commercial products and cloud services revenue increased 7% (up 8% in constant currency) driven by Office 365 commercial revenue growth of 45% (up 45% in constant currency).
- Office consumer products and cloud services revenue increased 15% (up 14% in constant currency) and Office 365 consumer subscribers increased to 26.2 million.
Back in January, Microsoft shared during its FY2017 Q2 results that Office 365 consumer subscribers reached 24.9 million, which means that the company won 1.3 million additional subscribers in the last quarter. However, it’s clear that Office 365 business customers remain much more valuable for Microsoft. “Across industries, customers recognize Office 365 is the productivity platform of choice,” shared Nadella during the company’s earning calls, adding that “we continue to innovate and add new value”. And with Microsoft Teams now being generally available to Office 365 commercial customers, the company seems well positioned to keep growing its Office 365 user base in the coming months.
