Microsoft Teams Premium has more than half a million users, while Teams Phone users have soared to 17 million, Microsoft CEO Satya Nadella has revealed.
Nadella was speaking as Microsoft published its quarterly earnings, which saw total revenue climb eight percent year on year to $56.2bn. Operating profit was up 18 percent to $24.3bn.
Teams largely took a backseat on the earnings call with investors who were more preoccupied with the emergence of generative AI.
Microsoft did however reveal some key stats, albeit not an updated monthly active users figure.
“We continue to build momentum in Microsoft Teams across collaboration, chat, meetings, and calling,” Nadella said.
The CEO said that Microsoft Teams Premium has more than 600,000 users despite only being made generally available in February this year.
Teams Premium is an add-on for existing Teams licences and includes advanced features such as AI-powered meeting recaps and live translation. Nadella said global organisations such as Starbucks and PepsiCo are among the customer base.
Phone and Rooms
Teams Phone, dubbed “the market leader in cloud calling by Nadella”, was revealed to have 17 million PSTN users – a climb of 45 percent year on year. Microsoft first gave a PSTN figure in June last year.
Microsoft did not reveal Teams Rooms usage figures, but said it’s used by more than 70 percent of Fortune 500 organisations, including L’Oreal, United Airlines, and US Bank. Revenue for Teams Rooms doubled year on year, Nadella added.
The final area of focus for Teams centred on app development, with Nadella claiming customers have built more than 145,000 custom applications for the Teams platform – including the likes of British Airways and Manulife. The Teams app store currently has more than 1,900 apps generally available for download.
Generative AI and Copilot
The earnings call was dominated by chatter around generative AI and Copilot, with Microsoft last year revealing that Microsoft 365 Copilot will cost $30 per user per month.
Nadella said that M365 Copilot is currently being rolled out to 600 paid customers through an early access program – but Microsoft is yet to reveal a date for general availability.
However, Microsoft 365 is just one of many areas where Microsoft has, or will, introduce generative AI. Nadella rattled through a host of areas across Microsoft’s stack where copilot will have an impact, including GitHub, Power BI, Power Virtual Agents, Dynamics 365, windows and Security.
The Numbers
Microsoft saw growth across the majority of its business units, with Intelligent Cloud revenue growing by 15 percent to $24m.
However, a deceleration in growth for Azure – a metric used to judge Microsoft’s public cloud infrastructure credentials against the likes of Amazon Web Services and Google Cloud – spooked investors.
Azure revenue grew by 26 percent year on year, down from 27 percent in the previous quarter. This contributed to a share price decline of more than four percent in after-hours trading, despite overall earnings topping estimates.
Dynamics revenue increased 13 percent, driven by growth in Dynamics 365 (up 21 percent).
