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Dynamics 365 had what Microsoft CEO Satya Nadella this week called a “breakthrough quarter”. For the third quarter ended March 31, Dynamics 365 revenue grew by 45 percent over last year’s corresponding quarter; 40 percent in constant currencies.

Microsoft only provided percentages of change and no actual revenue figures. Overall, dynamics products and cloud services increased by 26; 22 percent in constant currencies. In this week’s earnings webcast, CFO Amy Hood pointed to the “particular strength in Power apps in our finance and operations offering” in the growth of the Dynamics line. Nadella pointed to the integration of Teams so it can be used directly within Dynamics 365 as among the important recent enhancements. The flip side of accelerating cloud adoption was Office Commercial licensing, which declined 25 percent and 27 percent in constant currency, which Hood called “a bit below expectations” while office consumer revenue rose by 5 percent; 2 percent in constant currencies. Overall, Microsoft performed well, reporting quarterly revenue of $41.7 billion an increase of 19.1 percent over slightly more than $35 billion a year ago. Dynamics operations fall under the Productivity and Business Processes segment which reported revenue of $13.55 billion for the most recently ended period, a rise of 15.4 percent from $11.7 billion.

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