Microsoft posted another solid set of earnings results, with overall Q2 revenues topping $62BN.
That reflects a year-over-year (YoY) revenue growth of 18 percent for the tech giant, surpassing most analysts’ expectations.
The growth rate of its Dynamics business reached even higher, with revenues rising to a mighty 21 percent YoY.
However, Amy Hood, Chief Financial Officer at Microsoft, added a caveat during the earnings call. She said:
Bookings growth was impacted by weaker new business, primarily in Dynamics 365 ERP and CRM workloads.
In addition, Microsoft expects revenue growth for its overall Dynamics business to drop into "the mid-teens" next quarter.
Copilot Is Not Delivering a Big CRM Boom
Microsoft Dynamics 365 for Sales and Customer Service customers are using Copilot. Indeed, Microsoft shared an example of how Northern Trust has leveraged the virtual assistant to lower handling times across its contact center operations.
Moreover, Satya Nadella, CEO of Microsoft, stated:
In sales, our Copilot has helped sellers at more than 30,000 organizations, including Lumen Technologies and Schneider Electric, to enrich their customer interactions.
Yet, despite these uses of Copilot – spanning many existing customers – it hasn’t helped spark a massive uplift in new CRM bookings. Instead, they’re dropping.
That perhaps comes as a surprise after the release of Sales Copilot and the humdrum of excitement around the virtual assistant Microsoft has whipped up over the past 12 months.
In addition, the tech giant has raved over the benefits for its CRM customers when teasing Copilot over the past year.
For instance, in one blog post, Microsoft wrote: "Dynamics 365 Copilot brings the latest AI breakthroughs to every line of business, improving customer experience, employee experience and operational efficiency.
That’s quite the promise. Yet, it has not proven enough to welcome a new wave of new CRM or ERP bookings for the Dynamics 365 platform.
CRM Copilots Outside of Dynamics 365
It’s critical to note that Copilot for Sales and Service also comes as an out-of-the-box integration to apps like Salesforce, ServiceNow, and Zendesk.
