FY16 Q2 earnings show Productivity and Business Process division up 5% led by Office 365

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Microsoft’s ringing in its fiscal year 2016 quarter 2 earnings with some rather impressive numbers for a company still transitioning away from providing traditional box retail software. Among the numbers, Microsoft is hanging its quarterly revenue hat on are the gains from its Productivity and Business Processes division.

According to the numbers, while a cursory glance would indicate a slight decline, in a constant currency state, the P&BP division is up 5%, raising total revenue to $6.7 billion (US).

Microsoft’s FY16 Q2 Productivity and Business Processes summary

Other highlights include:

  • Office commercial products and cloud services revenue grew 5% in constant currency driven by Office 365 revenue growth of nearly 70% in constant currency
  • Office 365 consumer subscribers increased to 20.6 million
  • Dynamics revenue grew 11% in constant currency with Dynamics CRM Online seat adds more than doubling year-over-year for the fifth consecutive quarter

According to executive vice president and chief financial officer for Microsoft, Amy Hood, “We delivered double-digit operating income growth in non-GAAP constant currency while investing in key strategic areas that position Microsoft for continued long-term growth.” Looking at Microsoft’s numbers for its relatively new bundled Productivity and Business Processes division, it is becoming increasingly apparent that the company’s investment and in Office 365 and Online and re-investment in tools such as Dynamics CRM are helping shift its bottom line in a positive way.

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