MSFT Azure Quarterly YoY growth trends

JaminBall
2024-10-31

Azure at a ~$66B run rate growing 34% constant currency (33% overall)

They recently restated Azure, so some of the historical comparisons won't be apples to apples. PowerBI and EMS are no longer included in Azure which represented ~$20B of run rate last Q

Quarterly YoY growth trends below $Microsoft(MSFT)$

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Not exact figures, but rough estimates on Azure AI Services quarterly run rate below (12pts of growth this Q). They only disclose the % of growth to a full round number (no decimal point), so definitely not exact

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Below is an estimate of net new ARR added over the last few quarters.

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YoY growth trends in net new ARR per quarter

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Earnings Season: Which Companies Are You Following?
AI bolsters Microsoft's Q3 Azure revenue, which increased by over 30%, but a slowdown in growth is expected for Q4 along with increased AI spending. Meta's revenue slightly exceeded expectations, but AI losses worsened, with warnings of substantial future increases, and a significant rise in capital expenditures is anticipated next year. -------------- How do you view the two giants' earnings? Will you buy the dip as Microsoft dips to $400?
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