Microsoft’s overall earnings numbers were in line with expectations, but there was strong growth in Azure and their AI offerings. Comments made on the earnings call are bullish for NVDA and PLTR shareholders. I have been long MSFT since 2021.
Azure grew 30% YoY, and the Azure AI service is now at $5B ARR, which is 900% YoY growth. thanks to 60,000 paying customers (60% more than last year).
“We added new AI accelerators from AMD and NVIDIA, as well as our own first party silicon Azure Maia. And we introduced new Cobalt 100 ARM-based VMs, which provide best-in-class performance for customers like Elastic, MongoDB, Siemens, Snowflake, and Teradata.”
"Azure OpenAI Service provides access to best-in-class frontier models, including as of this quarter GPT-4o and GPT-4o mini.
It is being used by leading companies in every industry, including H&R Block, Suzuki, Swiss Re, Telstra as well as digital natives like Freshworks, Meesho, and Zomato."
"And with Models as a Service, we provide API access to third party models, including as of last week the latest from Cohere, Meta, and Mistral.
The number of paid Models as a Service customers more than doubled quarter-over-quarter, and we are seeing increased usage by leaders in every industry, from Adobe and Bridgestone, to Novo Nordisk and Palantir.
Copilot for Microsoft 365 is becoming a daily habit for knowledge workers, as it transforms work, workflow, and work artifacts.
The number of people who use Copilot daily at work nearly doubled quarter-over-quarter, as they use it to complete tasks faster, hold more effective meetings, and automate business workflows and processes.
Copilot customers increased more than 60% quarter-over-quarter.
Feedback has been positive, with majority of enterprise customers coming back to purchase more seats.
All-up, the number of customers with more than 10,000 seats more than doubled quarter-over-quarter, .
And we are going further, adding agent capabilities to Copilot.
New Team Copilot can facilitate meetings, and create and assign tasks.
And, with Copilot Studio, customers can extend Copilot for Microsoft 365 and build custom copilots that proactively respond to data and events using their own first and third-party business data.
To date, 50,000 organizations have used Copilot Studio, up over 70% quarter-over-quarter.
We are also extending Copilot to specific industries, including healthcare, with DAX Copilot.
More than 400 healthcare organizations have purchased DAX Copilot to date, up over 40% quarter-over-quarter.