14 DAY TRIAL // Microsoft today revealed the financial results for the quarter that ended June 30, 2014, posting revenues of $23.38 billion (€17.3 billion) and operating income of $6.48 billion (€4.81 billion).
The company said that the cloud business was pushing Microsoft forward thanks to a growth of 147 percent and reaching $4.4 billion (€3.26 billion) in revenues.
“We are galvanized around our core as a productivity and platform company for the mobile-first and cloud-first world, and we are driving growth with disciplined decisions, bold innovation, and focused execution,” said Satya Nadella, chief executive officer of Microsoft. “I’m proud that our aggressive move to the cloud is paying off – our commercial cloud revenue doubled again this year to a $4.4 billion annual run rate.”
At the same time, the Devices and Consumer business also posted revenues increased by 42 percent to $10 billion (€7.42 billion), with Microsoft detailing the financial results as it follows:
Windows OEM revenue grew 3%, driven by 11% growth in Windows OEM Pro revenue. Office 365 Home and Personal subscribers totaled more than 5.6 million, adding more than 1 million subscribers again this quarter. The acquired Phone Hardware business contributed $1.99 billion (€1.50 billion) to current year revenue. Bing search advertising revenue grew 40%, and U.S. search share grew to 19.2%.
As far as the commercial units are concerned, they also reported a growth of 11 percent to $13.48 billion (€10 billion), with the following highlights:
“Our results reflect our customers’ long-term commitments to our products and services, and strong execution by our field teams. We are thrilled with the tremendous momentum of our cloud offerings with Office 365 and Azure both growing over 100% again,” said Kevin Turner, chief operating officer at Microsoft. “Looking forward, we are excited by the amazing opportunities enabled by our technology roadmap and our strong engagement across partners, customers, and developers.”
As you can see, most of the businesses that Microsoft is investing in are growing bigger, including the Bing search advertising market that led to a US Search share of 19.2 percent.
The recently-purchased Phone Hardware business brought in $1.99 billion, Microsoft said, but improved results are expected to be posted in the coming quarters, as the company is taking the necessary measures to integrate Nokia’s Devices and Services unit into its own business.
As far as Windows is concerned, volume license grew by 11 percent, partially thanks to the Windows XP end of support which pushed more customers and companies to new versions of Windows.