Today I learned – 25th December 2019

Microsoft’s key metrics in graphs

Apparently, there is a page on Microsoft’s Investor Relations page that shows several key metrics in nice graphs. I didn’t know about this until today. It’s a nice resource to look at metrics over periods of time such as Azure growth (see below)

Source: Microsoft’s key metrics

Office Consumer revenue

In the latest annual report, Microsoft wrote

Fiscal Year 2019 Compared with Fiscal Year 2018

Office Consumer revenue increased $286 million or 7%, driven by Office 365 Consumer, due to recurring subscription revenue and transactional strength in Japan.

Source: Microsoft

Let’s do some maths. An increase of $286 million or 7% means that in Fiscal Year 2018, Office Consumer brought in about $4,086 million or a bit more than $4 billion. Add $286 to that sum and we have a revenue of $4,372 million or $4.3 billion in Fiscal Year 2019.

In Q1 2020, Microsoft reported the following:

Three Months Ended September 30, 2019 Compared with Three Months Ended September 30, 2018

Office Consumer revenue increased $51 million or 5%, driven by Office 365 Consumer, due to recurring subscription revenue, and transactional strength in Japan.

Source: Microsoft

Do the same maths as above and we arrive at approximately $1.07 billion for Q1 2020, pretty in line with the sum from Fiscal Year 2019.

Although we have the number of subscribers, due to how revenue is booked, we can’t divide the revenue by the number of subscribers to arrive at Average Revenue Per User

Disclosure: I own Microsoft stocks in my personal portfolio

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