Microsoft to disclose Azure quarterly revenue for the first time
Microsoft will begin reporting quarterly revenue from its Azure cloud business in U.S. dollars for the first time. The decision is part of a change in the company’s financial reporting structure: the number of operating segments will be reduced from three to two, CNBC Top News reports.
A new approach to Azure
Previously, Microsoft mainly disclosed only Azure’s annual growth rate, and last year it began providing annual sales figures for this business. The new format is intended to give investors a more accurate picture of the scale of Microsoft’s cloud business, which competes with Amazon Web Services and Google Cloud.
Under the updated definition of Azure, revenue from this business grew by 42% in the June quarter to $20.71 billion. Under the previous metric for Azure and other cloud services, growth was 43%. Azure accounted for 27% of Microsoft’s total revenue during the period.
Azure’s figure will no longer include GitHub cloud services, cloud services for developers, the Security Copilot assistant, or cloud products for healthcare and life sciences. Microsoft CEO Satya Nadella said in a presentation that under the new structure, Azure will be more focused on the consumption-based platform and infrastructure business.
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Two operating segments
Microsoft will henceforth report two segments: Agents and Infra and Devices and Consumer. Agents and Infra will include Azure, Microsoft 365 cloud products, licensing for productivity and server products, industry solutions, as well as advanced and support services.
The Devices and Consumer segment will include search and advertising, Xbox, device sales, and revenue from Windows licenses for device manufacturers. Microsoft will also provide recast financial results for two years and revised forecasts, but will stop separately showing expenses and operating margins for the previous three segments.
In July, the company reported that the number of paid Microsoft 365 Copilot seats had exceeded 30 million, compared with more than 20 million in April.
