Highlights From MSFT revenue: floor Sells, Bing earnings Up, home windows Struggles

Microsoft announced fiscal quarterly revenues this afternoon. the company had $26.5 million in revenue (up eight percent YoY) and $7.8 billion in working profits, which was down 2 p.c.

selected divisions carried out very well (devices, commercial and cloud services and products), whereas windows and standard office did not do as well.

On the positive side, Microsoft stated floor revenues of $1.1 billion, which was up 24 percent. This was mostly caused by gross sales of floor professional three. In floor professional 3 Microsoft has ultimately a bona fide device hit on its hands.

Xbox offered well and Microsoft additionally said $2.3 billion in telephone gross sales, 10.5 million gadgets of which were Lumia handsets. This marks a new quarterly record, though pushed via aggressive pricing (“reasonably priced smartphones”). Gross margin on handsets for the company was 14 p.c. closing quarter Microsoft offered 9.three million Lumia handsets.

Microsoft hopes that its subsequent OS, windows 10, which seeks to offer a more seamless and integrated expertise throughout displays, will further raise its Lumia telephones. despite the rise in unit gross sales home windows phone market share is basically flat with some remoted exceptions in Europe.

home windows licensing earnings was off thirteen % and place of job shopper earnings was down 25 percent. alternatively the company said it grew administrative center 365 subscriptions (a part of cloud services and products) to 9.2 million, which represents 30 percent increase vs. ultimate quarter. Over time place of job 365 subscribers pay extra and are extra treasured than typical place of business consumers.

Bing paid search revenue was once up 23 p.c YoY. Microsoft said that was a result of more query volume and better income per search. Repeating comScore, Microsoft said Bing had a 19.7 p.c search market share within the quarter.

display advert earnings was down for the company.

buyers expressed concern concerning the outlook for Microsoft’s windows trade, sending the inventory down in after-hours trading. however the company’s home windows 10 announcement last week has been smartly obtained and early technical reactions were favorable.

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Greg Sterling

Greg Sterling is a Contributing Editor at Search Engine Land. He writes a non-public blog, Screenwerk, about connecting the dots between digital media and actual-world client behavior. he’s additionally VP of strategy and Insights for the local Search association.