Thursday, January 23rd 2014

Microsoft Reports Record Revenue of $24.52 Billion in Q2 FY 2014

Microsoft Corp. today announced revenue of $24.52 billion for the quarter ended December 31, 2013. Gross margin, operating income, net income, and diluted earnings per share for the quarter were $16.24 billion, $7.97 billion, $6.56 billion, and $0.78 per share, respectively.

"Our Commercial segment continues to outpace the overall market, and our Devices and Consumer segment had a great holiday quarter," said Steve Ballmer, chief executive officer at Microsoft. "The investments we are making in devices and services that deliver high-value experiences to our customers, and the work we are doing with our partners, are driving strong results and positioning us well for long-term growth."

"We delivered record revenue as demand for our business offerings remains high and we made strong progress in our Devices and Consumer segment," said Amy Hood, chief financial officer at Microsoft. "These results reflect our focus on execution, cost discipline, and long-term shareholder value as we continue to drive the strategic transformation of the company."

Devices and Consumer revenue grew 13% to $11.91 billion.
  • Windows OEM revenue declined 3%, reflecting strong 12% growth in Windows OEM Pro revenue, offset by continued softness in the consumer PC market.
  • Surface revenue more than doubled sequentially, from $400 million in the first quarter to $893 million in the second quarter.
  • The company sold 7.4 million Xbox console units into the retail channel, including 3.9 million Xbox One consoles and 3.5 million Xbox 360 consoles.
  • Bing search share grew to 18.2% and search advertising revenue grew 34%.
Commercial revenue grew 10% to $12.67 billion.
  • SQL Server continued to gain market share with revenue growing double-digits.
  • System Center showed continued strength with double-digit revenue growth.
  • Commercial cloud services revenue more than doubled.
  • Office 365 commercial seats and Azure customers both grew triple-digits.
"We significantly outpaced enterprise IT spend as we continue to take share from our competitors by delivering the devices and services our customers need as they transition to the cloud," said Kevin Turner, chief operating officer at Microsoft. "Our commercial cloud services revenue grew more than 100% year-over-year, as customers are embracing Office 365, Azure, and Dynamics CRM Online, and making long-term commitments to the Microsoft platform."
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16 Comments on Microsoft Reports Record Revenue of $24.52 Billion in Q2 FY 2014

#1
erixx
My monies is there, I never spend as much on MS as this year. Time to become shareholder!? :)
Posted on Reply
#2
Jorge
Consumer fraud pays really well for some companies.
Posted on Reply
#3
erixx
Hola Jorge, qué? Te pica la chona otra vez?

Of course they should pay taxes in countries where they operate, and not act like thieves, but this is an international law problem affecting all great multinationals (from my very own Shell to McDonalds.., but at least Shell moves my engines whereas McDonalds well, hard to find something more useless than fast food).
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#4
cyneater
They made to much money pitty they can't make a decent os or just include a start bar.
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#5
Frick
Fishfaced Nincompoop
by: cyneater
They made to much money pitty they can't make a decent os or just include a start bar.
If your definition of a decent os is it having a classic start meny you're way off dude.
Posted on Reply
#6
cyneater
by: Frick
If your definition of a decent os is it having a classic start meny you're way off dude.
The operating system had to be easy to use. And you don't need to be on drugs to see how its a huge leap forward.
Posted on Reply
#7
Frick
Fishfaced Nincompoop
Now I have no idea what you're on about.

Anyway I'm looking forward to the summer, and how the ended XP support will affect MS' finance.
Posted on Reply
#8
wickedcricket
by: Frick
Now I have no idea what you're on about.

Anyway I'm looking forward to the summer, and how the ended XP support will affect MS' finance.
haha Frick it won't affect it in negative way if that's what you meant, it will definitely affect your finance...
Posted on Reply
#9
Solidstate89
by: Frick
Now I have no idea what you're on about.

Anyway I'm looking forward to the summer, and how the ended XP support will affect MS' finance.
How will it affect Microsoft in any way - negatively speaking? They haven't sold licenses of XP for years now.

Personally, I find most of these comments hilarious. Even in the face of record profits and revenue; Microsoft is still a dying company. Man, I wish I was "struggling" as much as MS is right now!
Posted on Reply
#10
repman244
by: Frick

Anyway I'm looking forward to the summer, and how the ended XP support will affect MS' finance.
They will get even more money since some of the people using it will change to win 7/8.

And I also don't get all the moaning when it comes to microsoft - if it's such a horrid company use linux...you won't come far with that.
Posted on Reply
#11
Frick
Fishfaced Nincompoop
by: Solidstate89
How will it affect Microsoft in any way - negatively speaking? They haven't sold licenses of XP for years now.

Personally, I find most of these comments hilarious. Even in the face of record profits and revenue; Microsoft is still a dying company. Man, I wish I was "struggling" as much as MS is right now!
I meant if the Windows 7/8 sales will be affected. And OEM computer sales. And Linux installs.
Posted on Reply
#12
Solidstate89
by: Frick
I meant if the Windows 7/8 sales will be affected. And OEM computer sales. And Linux installs.
I expect big business OEMs like Dell and Lenovo will go up in terms of desktop sales. Whether those will be Windows 8 or Windows 7 - I do not know.
Posted on Reply
#14
Hilux SSRG
Glad MS is still making the bucks but I'm waiting for Win9.

Looking back Win8/8.1 has been basically windows Vista - a stepping stone until the next "full" upgrade.
Posted on Reply
#16
ManofGod
Exactly, it is very old. Interface changes need to occur to move towards the future, not cling to the past. Microsoft could have done it at a more leisurely pace but I do not think that would have worked for them. Also, I prefer to have all available options on whatever I am using, whether it is my desktop, tablet, phone or Xbox one.

The old start menu is gone for good. Whatever they produce going forward with be an extension or improvement of what Microsoft is using now. They will produce a start menu "like" interface but it will not be a classic start menu in my opinion.
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