Office sees increased revenue and user installs for both commercial and consumer groups

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Microsoft announced yesterday its earning reports for the second quarter of its 2017 fiscal year, with reveune in Productivity and Business Processes being once again a bright spot for the company. This reporting segment which covers Office commercial and consumer, Dynamics and LinkedIn generated $7.38 billion of revenue, and here is what Microsoft highlighted in its detailed results:

Office Commercial

  • Office commercial products and cloud services revenue increased 5% (up 7% in constant currency)
  • Office 365 commercial revenue grew 47% (up 49% in constant currency) driven by Office 365 commercial seats which grew 37%
  • Office commercial products revenue declined 13% (down 12% CC) reflecting continued adoption of cloud offerings by consumers
  • Continued installed base growth across Office, Exchange, Sharepoint, and Skype for Business
  • Now over 65M monthly active devices using Office on iOS and Android, more than doubling year-over-year

Office Consumer

  • Office consumer products and cloud services revenue grew 22% (up 21% CC) benefiting from recurring subscription revenue
  • Office 365 consumer subscribers now at 24.9 million

While Microsoft declined to share the total number of Office 365 commercial seats this quarter (up 37% year-over-year), the company revealed during its Ignite 2016 conference last year that the cloud productivity suite had reached 70 million commercial subscribers as of September 26. If you combine this number with the 24.9 million Office consumer subscribers, then it seems that Microsoft is probably pretty close to reach 100 million Office 365 commercial and consumer subscribers in total.

We'll see if the company announces this new milestone in its next quarterly earnings reports, but overall it seems that Office's transition from a big box purchase to a SaaS business model is going well.

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