MICROSOFT CORP
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 30, 2025
MSFT$530.61-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-01-29.
0000950170-25-010491
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-30.
0000950170-25-061046
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 172 previous paragraphs and 176 current paragraphs.
93 unchanged; 45 reworded; 35 added; 30 removed; 4 previous and 3 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (35)
Current report
Microsoft Cloud revenue increased 20% to $42.4 billion.
Current report
Microsoft 365 Commercial products and cloud services revenue increased 11% driven by Microsoft 365 Commercial cloud revenue growth of 12%.
Current report
Microsoft 365 Consumer products and cloud services revenue increased 10% driven by Microsoft 365 Consumer cloud revenue growth of 10%.
Current report
LinkedIn revenue increased 7%.
Current report
Server products and cloud services revenue increased 22% driven by Azure and other cloud services revenue growth of 33%.
Current report
Further, global, regional, and local economic developments and changes in global trade policies such as restrictions on international trade, including tariffs and other controls on imports or exports, could result in increased supply chain challenges, cost volatility, and consumer and economic uncertainty which may adversely affect our results of operations.
Current report
Gross margin increased $4.8 billion or 11% with growth across each of our segments.
Current report
Operating expenses increased $375 million or 2% driven by investments in cloud and AI engineering.
Current report
Operating income increased $4.4 billion or 16% with growth across each of our segments.
Current report
Revenue, gross margin, and operating income included an unfavorable foreign currency impact of 2%, 2%, and 3%, respectively. Cost of goods sold included a favorable foreign currency impact of 2%.
Current report
Gross margin increased $15.5 billion or 12% with growth across each of our segments.
Current report
Operating income increased $12.7 billion or 16% with growth across each of our segments.
Current report
LinkedIn revenue increased $298 million or 7% with growth across all lines of business.
Current report
Operating income increased $2.2 billion or 15%.
Current report
Gross margin increased $2.3 billion or 10% driven by growth in Microsoft 365 Commercial cloud. Gross margin percentage was relatively unchanged inclusive of the impact of scaling our AI infrastructure.
Current report
Operating expenses increased $53 million or 1% primarily driven by investments in cloud and AI engineering.
Current report
Revenue, gross margin, and operating income each included an unfavorable foreign currency impact of 3%.
Current report
Operating income increased $1.6 billion or 17%.
Current report
Revenue increased $767 million or 6%.
Current report
Windows and Devices revenue increased $46 million or 1%. Windows OEM and Devices revenue increased 3% driven by growth in Windows OEM, with inventory levels remaining elevated due to tariff uncertainty.
Current report
Operating income increased $603 million or 21%.
Current report
Operating expenses increased $20 million or 1%.
Current report
Gross margin and operating income both included an unfavorable foreign currency impact of 2%.
Current report
Revenue increased $9.5 billion or 12%.
Current report
LinkedIn revenue increased $1.1 billion or 9% with growth across all lines of business.
Current report
Operating income increased $6.8 billion or 16%.
Current report
Gross margin increased $7.4 billion or 12% driven by growth in Microsoft 365 Commercial cloud. Gross margin percentage decreased slightly driven by the impact of scaling our AI infrastructure.
Current report
Revenue increased $12.7 billion or 20%.
Current report
Operating income increased $4.5 billion or 16%.
Current report
Operating expenses increased $1.2 billion or 8% driven by investments in cloud and AI engineering.
Current report
Revenue increased $2.7 billion or 7%.
Current report
Operating income increased $1.4 billion or 15%.
Current report
Research and development expenses increased $545 million or 7% driven by investments in cloud and AI engineering.
Current report
Sales and marketing expenses were relatively unchanged.
Current report
General and administrative expenses decreased $175 million or 9% primarily driven by Gaming.
Removed paragraphs (30)
Previous report
Microsoft Cloud revenue increased 21% to $40.9 billion.
Previous report
Microsoft 365 Commercial products and cloud services revenue increased 15% driven by Microsoft 365 Commercial cloud revenue growth of 16%.
Previous report
LinkedIn revenue increased 9%.
Previous report
Server products and cloud services revenue increased 21% driven by Azure and other cloud services revenue growth of 31%.
Previous report
Xbox content and services revenue increased 2%.
Previous report
Gross margin increased $5.4 billion or 13% driven by growth across each of our segments.
Previous report
Gross margin percentage increased slightly driven by More Personal Computing and sales mix shift to higher margin businesses within More Personal Computing, offset in part by Intelligent Cloud.
Previous report
Operating expenses increased $815 million or 5% driven by investments in cloud engineering.
Previous report
Gross margin increased $10.7 billion or 13% driven by growth across each of our segments.
Previous report
Operating income increased $8.3 billion or 15% driven by growth across each of our segments.
Previous report
Revenue increased $3.6 billion or 14%.
Previous report
LinkedIn revenue increased $392 million or 9% driven by growth across all lines of business – Marketing Solutions, Talent Solutions, Premium Subscriptions, and Sales Solutions.
Previous report
Operating income increased $2.4 billion or 16%.
Previous report
Gross margin increased $2.8 billion or 13% driven by growth in Microsoft 365 Commercial cloud. Gross margin percentage decreased slightly driven by scaling our AI infrastructure.
Previous report
Revenue increased $4.0 billion or 19%.
Previous report
Operating income increased $1.3 billion or 14%.
Previous report
Operating expenses increased $482 million or 10% driven by investments in cloud engineering.
Previous report
Revenue was relatively unchanged.
Previous report
Operating income increased $955 million or 32%, including a favorable foreign currency impact of 2%.
Previous report
Operating expenses decreased $57 million or 1% primarily driven by Gaming.
Previous report
Revenue increased $6.7 billion or 13%.
Previous report
LinkedIn revenue increased $771 million or 10% driven by growth across all lines of business – Marketing Solutions, Talent Solutions, Premium Subscriptions, and Sales Solutions.
Previous report
Gross margin increased $5.1 billion or 12% driven by growth in Microsoft 365 Commercial cloud. Gross margin percentage decreased slightly driven by scaling our AI infrastructure.
Previous report
Revenue increased $8.1 billion or 19%.
Previous report
Operating income increased $2.9 billion or 16%.
Previous report
Windows and Devices revenue increased $138 million or 2%. Windows OEM and Devices revenue increased 3% as commercial inventory builds drove growth in Windows OEM, offset in part by a decline in Devices.
Previous report
Operating income increased $798 million or 12%.
Previous report
Research and development expenses increased $775 million or 11% driven by investments in cloud engineering.
Previous report
Sales and marketing expenses increased $194 million or 3% driven by investments in commercial sales.
Previous report
General and administrative expenses increased $45 million or 1% primarily driven by investments in corporate functions, offset in part by the impact of the Activision Blizzard acquisition.
Reworded paragraphs (45)
Previous wording
Highlights from the second quarter of fiscal year 2025 compared with the second quarter of fiscal year 2024 included:
Current wording
Highlights from the third quarter of fiscal year 2025 compared with the third quarter of fiscal year 2024 included:
Previous wording
Dynamics products and cloud services revenue increased 15% driven by Dynamics 365 revenue growth of 19%.
Current wording
Dynamics products and cloud services revenue increased 11% driven by Dynamics 365 revenue growth of 16%.
Previous wording
Windows OEM and Devices revenue increased 4%.
Current wording
Windows OEM and Devices revenue increased 3%.
Previous wording
Microsoft 365 Consumer products and cloud services revenue increased 8% driven by Microsoft 365 Consumer cloud revenue growth of 8%.
Current wording
Xbox content and services revenue increased 8%.
Previous wording
Our international operations provide a significant portion of our total revenue and expenses. Many of these revenue and expenses are denominated in currencies other than the U.S. dollar. As a result, changes in foreign exchange rates may significantly affect revenue and expenses. Fluctuations in the U.S. dollar relative to certain foreign currencies did not have a material impact on reported revenue and expenses from our international operations for the three and six months ended December 31, 2024.
Current wording
Our international operations provide a significant portion of our total revenue and expenses. Many of these revenue and expenses are denominated in currencies other than the U.S. dollar. As a result, changes in foreign exchange rates may significantly affect revenue and expenses. Fluctuations in the U.S. dollar relative to certain foreign currencies decreased reported revenue and expenses from our international operations for the three months ended March 31, 2025, and did not have a material impact on reported revenue and expenses from our international operations for the nine months ended March 31, 2025.
Previous wording
Revenue increased $7.6 billion or 12% driven by growth in Intelligent Cloud and Productivity and Business Processes. Intelligent Cloud revenue increased driven by Azure. Productivity and Business Processes revenue increased driven by Microsoft 365 Commercial cloud. More Personal Computing revenue was relatively unchanged.
Current wording
Revenue increased $8.2 billion or 13% with growth across each of our segments. Intelligent Cloud revenue increased driven by Azure. Productivity and Business Processes revenue increased driven by Microsoft 365 Commercial cloud. More Personal Computing revenue increased driven by Search and news advertising.
Previous wording
Cost of revenue increased $2.2 billion or 11% driven by growth in Microsoft Cloud, offset in part by Gaming.
Current wording
Cost of revenue increased $3.4 billion or 18% driven by growth in Microsoft Cloud.
Previous wording
Microsoft Cloud gross margin percentage decreased to 70% driven by scaling our AI infrastructure.
Current wording
Microsoft Cloud gross margin percentage decreased to 69% driven by the impact of scaling our AI infrastructure.
Previous wording
Revenue increased $16.7 billion or 14% driven by growth across each of our segments. Intelligent Cloud revenue increased driven by Azure. Productivity and Business Processes revenue increased driven by Microsoft 365 Commercial cloud. More Personal Computing revenue increased driven by Gaming.
Current wording
Revenue increased $24.9 billion or 14% with growth across each of our segments. Intelligent Cloud revenue increased driven by Azure. Productivity and Business Processes revenue increased driven by Microsoft 365 Commercial cloud. More Personal Computing revenue increased driven by Gaming and Search and news advertising.
Previous wording
Cost of revenue increased $6.0 billion or 17% driven by growth in Microsoft Cloud.
Current wording
Cost of revenue increased $9.4 billion or 17% driven by growth in Microsoft Cloud.
Previous wording
Microsoft Cloud gross margin percentage decreased to 70% driven by scaling our AI infrastructure.
Current wording
Microsoft Cloud gross margin percentage decreased to 70% driven by the impact of scaling our AI infrastructure.
Previous wording
Operating expenses increased $2.4 billion or 8% driven by investments in cloud engineering and the impact of the Activision Blizzard acquisition.
Current wording
Operating expenses increased $2.8 billion or 6% driven by investments in cloud and AI engineering and the impact of the Activision Blizzard acquisition.
Previous wording
Microsoft 365 Commercial products and cloud services revenue increased $2.8 billion or 15%. Microsoft 365 Commercial cloud revenue grew 16% with Microsoft 365 Commercial seat growth of 7% driven by small and medium business and frontline worker offerings, as well as growth in revenue per user. Microsoft 365 Commercial products revenue grew 13% driven by the Windows Commercial on-premises components of Microsoft 365 suite sales and an increase in transactional purchasing with the launch of Office 2024.
Current wording
Microsoft 365 Commercial products and cloud services revenue increased $2.2 billion or 11%. Microsoft 365 Commercial cloud revenue grew 12% with Microsoft 365 Commercial seat growth of 7% driven by small and medium business and frontline worker offerings, as well as growth in revenue per user. Microsoft 365 Commercial products revenue grew 5% driven by the Windows Commercial on-premises components of Microsoft 365 suite sales and an increase in Office transactional purchasing.
Previous wording
Microsoft 365 Consumer products and cloud services revenue increased $142 million or 8%. Microsoft 365 Consumer cloud revenue grew 8% driven by Microsoft 365 Consumer subscriber growth of 10% to 86.3 million with mix shift to Microsoft 365 Basic.
Current wording
Microsoft 365 Consumer products and cloud services revenue increased $173 million or 10%. Microsoft 365 Consumer cloud revenue grew 10% driven by Microsoft 365 Consumer subscriber growth of 9% to 87.7 million, as well as growth in revenue per user from the price increase announced in January 2025, offset in part by continued mix shift to Microsoft 365 Basic.
Previous wording
Dynamics products and cloud services revenue increased $254 million or 15% driven by growth in Dynamics 365, offset in part by a decline in Dynamics on-premises products. Dynamics 365 revenue grew 19% driven by growth across all workloads.
Current wording
Dynamics products and cloud services revenue increased $189 million or 11% driven by growth in Dynamics 365, offset in part by a decline in Dynamics on-premises products. Dynamics 365 revenue grew 16% with growth across all workloads.
Previous wording
Operating income increased $4.6 billion or 16%.
Current wording
Revenue increased $4.6 billion or 21%.
Previous wording
Server products and cloud services revenue increased $4.0 billion or 21% driven by Azure and other cloud services. Azure and other cloud services revenue grew 31% driven by demand for our portfolio of services, including 13 points from our AI services which grew 157%. Server products revenue decreased 3% driven by a decrease in transactional purchasing and a prior year comparable that benefited from purchasing ahead of Windows Server 2012 end of support.
Current wording
Server products and cloud services revenue increased $4.5 billion or 22% driven by Azure and other cloud services. Azure and other cloud services revenue grew 33% driven by demand for our portfolio of services, including 16 points from our AI services. Server products revenue decreased 6% primarily driven by a decrease in transactional purchasing with continued customer shift to cloud offerings.
Previous wording
Enterprise and partner services revenue decreased $25 million or 1% driven by a decline in Industry Solutions, offset in part by growth in Enterprise Support Services.
Current wording
Enterprise and partner services revenue increased $85 million or 5% driven by growth in Enterprise Support Services, offset in part by a decline in Industry Solutions.
Previous wording
Gross margin increased $3.7 billion or 13% driven by growth in Azure. Gross margin percentage decreased driven by scaling our AI infrastructure.
Current wording
Gross margin increased $1.9 billion or 13% driven by growth in Azure. Gross margin percentage decreased driven by the impact of scaling our AI infrastructure.
Previous wording
Operating expenses increased $390 million or 6% driven by investments in cloud engineering.
Current wording
Operating expenses increased $302 million or 6% driven by investments in cloud and AI engineering.
Previous wording
Gaming revenue decreased $530 million or 7% driven by a decline in Xbox hardware, offset in part by growth in Xbox content and services. Xbox hardware revenue decreased 29% driven by lower volume of consoles sold. Xbox content and services revenue increased 2% driven by growth in Xbox Game Pass.
Current wording
Gaming revenue increased $270 million or 5% driven by growth in Xbox content and services. Xbox content and services revenue increased 8% driven by growth in Xbox Game Pass, Call of Duty, and Minecraft. Xbox hardware revenue decreased 6%.
Previous wording
Search and news advertising revenue increased $390 million or 12%. Search and news advertising revenue excluding traffic acquisition costs increased 21% driven by higher search volume and higher revenue per search.
Current wording
Search and news advertising revenue increased $449 million or 15%. Search and news advertising revenue excluding traffic acquisition costs increased 21% driven by higher revenue per search and higher search volume.
Previous wording
Microsoft 365 Commercial products and cloud services revenue increased $5.2 billion or 14%. Microsoft 365 Commercial cloud revenue grew 15% driven by seat growth and growth in revenue per user. Microsoft 365 Commercial products revenue grew 7% driven by the Windows Commercial on-premises components of Microsoft 365 suite sales.
Current wording
Microsoft 365 Commercial products and cloud services revenue increased $7.4 billion or 13%. Microsoft 365 Commercial cloud revenue grew 14% driven by seat growth and growth in revenue per user. Microsoft 365 Commercial products revenue grew 7% driven by the Windows Commercial on-premises components of Microsoft 365 suite sales and an increase in Office transactional purchasing.
Previous wording
Microsoft 365 Consumer products and cloud services revenue increased $226 million or 7%. Microsoft 365 Consumer cloud revenue grew 7% with continued growth in Microsoft 365 Consumer subscribers.
Current wording
Microsoft 365 Consumer products and cloud services revenue increased $399 million or 8%. Microsoft 365 Consumer cloud revenue grew 8% with continued growth in Microsoft 365 Consumer subscribers.
Previous wording
Dynamics products and cloud services revenue increased $477 million or 15% driven by growth in Dynamics 365, offset in part by a decline in Dynamics on-premises products. Dynamics 365 revenue grew 19% driven by growth across all workloads.
Current wording
Dynamics products and cloud services revenue increased $666 million or 13% driven by growth in Dynamics 365, offset in part by a decline in Dynamics on-premises products. Dynamics 365 revenue grew 18% with growth across all workloads.
Previous wording
Operating expenses increased $491 million or 4% driven by investments in cloud engineering and commercial sales.
Current wording
Operating expenses increased $544 million or 3% driven by investments in cloud and AI engineering and commercial sales.
Previous wording
Server products and cloud services revenue increased $8.1 billion or 22% driven by Azure and other cloud services. Azure and other cloud services revenue grew 32% driven by demand for our portfolio of services, including 12 points from our AI services which grew 178%. Server products revenue decreased 2% driven by a decrease in transactional purchasing.
Current wording
Server products and cloud services revenue increased $12.6 billion or 22% driven by Azure and other cloud services. Azure and other cloud services revenue grew 32% driven by demand for our portfolio of services, including 14 points from our AI services. Server products revenue decreased 4% driven by a decrease in transactional purchasing.
Previous wording
Enterprise and partner services revenue decreased $41 million or 1% driven by a decline in Industry Solutions.
Current wording
Enterprise and partner services revenue increased slightly driven by growth in Enterprise Support Services, offset in part by a decline in Industry Solutions.
Previous wording
Gross margin increased $1.8 billion or 12% driven by growth in Azure. Gross margin percentage decreased driven by scaling our AI infrastructure.
Current wording
Gross margin increased $5.6 billion or 13% driven by growth in Azure. Gross margin percentage decreased driven by the impact of scaling our AI infrastructure.
Previous wording
Windows and Devices revenue increased $149 million or 3%. Windows OEM and Devices revenue increased 4% as commercial inventory builds drove growth in Windows OEM, offset in part by a decline in Devices.
Current wording
Windows and Devices revenue increased $184 million or 1%. Windows OEM and Devices revenue increased 3% driven by growth in Windows OEM, offset in part by a decline in Devices.
Previous wording
Gaming revenue increased $1.2 billion or 11% driven by growth in Xbox content and services, offset in part by a decline in Xbox hardware. Xbox content and services revenue increased 24% driven by the impact of the Activision Blizzard acquisition. Xbox hardware revenue decreased 29% driven by lower volume of consoles sold.
Current wording
Gaming revenue increased $1.4 billion or 9% driven by growth in Xbox content and services, offset in part by a decline in Xbox hardware. Xbox content and services revenue increased 18% driven by the impact of the Activision Blizzard acquisition and Xbox Game Pass. Xbox hardware revenue decreased 26% driven by lower volume of consoles sold.
Previous wording
Search and news advertising revenue increased $597 million or 10%. Search and news advertising revenue excluding traffic acquisition costs increased 20% driven by higher search volume and higher revenue per search.
Current wording
Search and news advertising revenue increased $1.0 billion or 11%. Search and news advertising revenue excluding traffic acquisition costs increased 20% driven by higher search volume and higher revenue per search.
Previous wording
Gross margin increased $1.9 billion or 15% driven by growth in Gaming, including the impact of the Activision Blizzard acquisition. Gross margin percentage increased driven by sales mix shift to higher margin businesses and improvement in Search and news advertising and Gaming.
Current wording
Gross margin increased $2.5 billion or 13% driven by growth in Gaming, including the impact of the Activision Blizzard acquisition, and Search and news advertising. Gross margin percentage increased driven by sales mix shift to higher margin businesses and improvement in Search and news advertising and Gaming.
Previous wording
Operating expenses increased $1.1 billion or 17% driven by the impact of the Activision Blizzard acquisition.
Current wording
Operating expenses increased $1.1 billion or 11% driven by the impact of the Activision Blizzard acquisition.
Previous wording
Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with product development. Research and development expenses also include third-party development and programming costs and the amortization of purchased software code and services content.
Current wording
Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with product development. Research and development expenses also include technology development costs, including AI training and other infrastructure costs, third-party development and programming costs, and the amortization of purchased software code and services content.
Previous wording
Research and development expenses increased $1.7 billion or 12% driven by investments in cloud engineering and the impact of the Activision Blizzard acquisition.
Current wording
Research and development expenses increased $2.2 billion or 10% driven by investments in cloud and AI engineering and the impact of the Activision Blizzard acquisition.
Previous wording
Sales and marketing expenses increased $724 million or 6% driven by the impact of the Activision Blizzard acquisition and investments in commercial sales.
Current wording
Sales and marketing expenses increased $729 million or 4% driven by the impact of the Activision Blizzard acquisition and investments in commercial sales.
Previous wording
General and administrative expenses decreased $154 million or 8% driven by Gaming, offset in part by investments in corporate functions.
Current wording
General and administrative expenses decreased $130 million or 2% primarily driven by Gaming, offset in part by investments in corporate functions.
Previous wording
Interest and dividends income decreased primarily due to lower portfolio balances. Interest expense decreased primarily due to maturities of commercial paper, offset in part by higher finance lease interest expense. Net recognized losses on investments increased primarily due to higher impairments and lower gains on equity investments in the current period. Net losses on derivatives decreased primarily due to lower losses on equity derivatives in the current period. Other, net primarily reflects net recognized losses on equity method investments, including OpenAI.
Current wording
Interest and dividends income decreased primarily due to lower portfolio balances. Interest expense decreased primarily due to maturities of commercial paper, offset in part by higher finance lease interest expense. Net recognized gains on investments increased primarily due to higher gains on equity investments in the current period. Net gains on derivatives increased primarily due to gains on equity derivatives in the current period as compared to losses in the prior period. Other, net primarily reflects net recognized losses on equity method investments, including OpenAI.
Previous wording
Our effective tax rate was 18% for both the three months ended December 31, 2024 and 2023, and 18% for both the six months ended December 31, 2024 and 2023. Our effective tax rate for the three and six months ended December 31, 2024 was primarily impacted by tax benefits from tax law changes in the prior fiscal year, including the delay of the effective date of final foreign tax credit regulations, and changes in the mix of our earnings and tax expenses between the U.S. and foreign countries.
Current wording
Our effective tax rate was 18% for both the three months ended March 31, 2025 and 2024, and 18% for both the nine months ended March 31, 2025 and 2024. Our effective tax rate for the three months ended March 31, 2025 was primarily impacted by changes in the mix of our earnings and tax expenses between the U.S. and foreign countries. Our effective tax rate for the nine months ended March 31, 2025 was primarily impacted by tax benefits from tax law changes in the prior fiscal year, including the delay of the effective date of final foreign tax credit regulations, and changes in the mix of our earnings and tax expenses between the U.S. and foreign countries.
Showing the first 40 of 45 pairs. Open the source sections for the rest.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
Gross margin percentage decreased driven by Intelligent Cloud.
Current report — wording carried from elsewhere
Revenue increased $2.8 billion or 10%.
Current report — wording carried from elsewhere
Gross margin increased $623 million or 9% driven by growth in Search and news advertising and Gaming. Gross margin percentage increased driven by improvement in Search and news advertising and Gaming.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Operating income increased $4.6 billion or 17% driven by growth across each of our segments.
Previous report — wording carried elsewhere
Gross margin increased $898 million or 13% driven by growth in Gaming, Search and news advertising, and Windows and Devices. Gross margin percentage increased driven by sales mix shift to higher margin businesses and improvement in Gaming and Search and news advertising.
Previous report — wording carried elsewhere
Operating expenses increased $854 million or 9% driven by investments in cloud engineering.
Previous report — wording carried elsewhere
Revenue increased $1.9 billion or 7%.