Microsoft last night had published its Q1 earnings report announcing a revenue of $20.40 billion for the quarter ending March 31, 2014. This quarter has been very busy for the company with so many big announcements. Glancing at the eventful quarter, the company announced the appointment of their new CEO Satya Nadella, launched Office Suite for iPad, came up with major updates for Windows 8.1, upgrading Windows Phone to 8.1 and deciding to make Windows Phone free to use for hardware developers to compete with Google’s own Android platform.
The company reported that their diluted earnings per share for the quarter were $0.68 per share on revenues of $20.4 billion with gross margin, operating income, and net income as $14.46 billion, $6.97 billion, and $5.66 billion respectively. However, while Microsoft’s earnings beat the consensus estimate which was $0.63 per share, the reports still represented a decline in the graph from its Q3 2013 earnings, which was $0.72 per share on revenues of $20.49 billion.
Show stopper for this quarter was the Office 365 which now has 4.4 million subscribers, 1 million alone in these three months. There has also been an unrevealed sales which increased Surface revenue up to 50% approximately bringing in $500 million.
Highlights from the report is as follows:
- Devices and Consumer revenue grew 12% to $8.30 billion.
- Windows OEM revenue grew 4%, driven by strong 19% growth in Windows OEM Pro revenue.
- Office 365 Home now has 4.4 million subscribers, adding nearly 1 million subscribers in just three months and revenue grew over 100%
- Microsoft sold in 2.0 million Xbox console units, including 1.2 million Xbox One consoles (can’e beat behind PS4, eh?) and 800,000 Xbox 360 which shows cheaper ones are still in demand
- Surface revenue grew over 50% to approximately $500 million.
- Bing U.S. search share grew to 18.6% and search advertising revenue grew 38%.
- Commercial revenue grew 7% to $12.23 billion.
- Azure revenue grew over 150%, announcing more than 40 new features to the cloud platform.
- Windows volume licensing revenue hiked up by 11%.
- Lync, SharePoint, and Exchange, collectively grew to double-digits.
Image Source : BBC.co.uk