Microsoft have released their first quarterly financial report of the 2017 fiscal year, reporting $22.3 billion in revenue.

With analysts speculating the company would report only $21.7 billion in revenue, the report surpassed both expectations and last year’s results.

However, it’s not all good news. The company’s gaming division reported a 5% slip in growth while their phone division fell 72% in revenue.

In comparison, the company’s Surface division reported gains of 38%, rising to $926 million in Q1 2017.

Another strong performer was the company’s intelligent cloud division, which grew revenues to the sum of 11%. 

Microsoft’s Azure service was a big contributor here, growing individual revenues 116%.

“We are helping to lead a profound digital transformation for customers, infusing intelligence across all of our platforms and experiences,” Microsoft CEO Satya Nadella said in a statement.

“We continue to innovate, grow engagement, and build our total addressable market.”