Thursday, April 24th 2014

Microsoft Reports $20 Billion Revenue for Q3 FY14

Microsoft Corp. today announced revenue of $20.40 billion for the quarter ended March 31, 2014. Gross margin, operating income, net income, and diluted earnings per share for the quarter were $14.46 billion, $6.97 billion, $5.66 billion, and $0.68 per share, respectively.

The following table reconciles our financial results reported in accordance with generally accepted accounting principles ("GAAP") to non-GAAP financial results for the prior year. We have provided this non-GAAP financial information to aid investors in better understanding the company's performance. Management commentary regarding performance and growth refers to non-GAAP financial results.

"This quarter's results demonstrate the strength of our business, as well as the opportunities we see in a mobile-first, cloud-first world. We are making good progress in our consumer services like Bing and Office 365 Home, and our commercial customers continue to embrace our cloud solutions. Both position us well for long-term growth," said Satya Nadella, chief executive officer at Microsoft. "We are focused on executing rapidly and delivering bold, innovative products that people love to use."

"We delivered solid, broad-based financial results driven by strong execution and continued cost discipline," said Amy Hood, executive vice president and chief financial officer at Microsoft. "We are focusing our resources to drive growth and long-term shareholder value."

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.
  • Microsoft sold in 2.0 million Xbox console units, including 1.2 million Xbox One consoles.
  • 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.
  • Office 365 revenue grew over 100%, and commercial seats nearly doubled, demonstrating strong enterprise momentum for Microsoft's cloud productivity solutions.
  • Azure revenue grew over 150%, and the company has announced more than 40 new features that make the Azure platform more attractive to cloud application developers.
  • Windows volume licensing revenue grew 11%, as business customers continue to make Windows their platform of choice.
  • Lync, SharePoint, and Exchange, our productivity server offerings, collectively grew double-digits.
"Our products and services continue to deliver differentiated business value to our customers, and we continue to win share in areas like cloud services, data platform, and infrastructure management," said Kevin Turner, chief operating officer at Microsoft. "Our SQL Server business grew double-digits again this quarter, and with the announcements of SQL 2014 and Power BI for Office 365, we offer a unique, comprehensive, end-to-end data and analytics solution."
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25 Comments on Microsoft Reports $20 Billion Revenue for Q3 FY14

#1
matar
Great news but what's even better news is that in August windows 8.1 update 2 will finally bring back the real start menu and modern apps will run in real desktop mode rather then only full screen and split we will have full control of resizing the apps , good to see Microsoft is on a good track.
Posted on Reply
#2
Arjai
by: matar
Great news but what's even better news is that in August windows 8.1 update 2 will finally bring back the real start menu and modern apps will run in real desktop mode rather then only full screen and split we will have full control of resizing the apps , good to see Microsoft is on a good track.
Are you for real? Win 8 is gonna be less Metro? And More Pc?
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#3
matar
by: Arjai
Are you for real? Win 8 is gonna be less Metro? And More Pc?
Yes
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#6
RCoon
Forum Gypsy
by: TheBrainyOne
So, when did Microsoft turn profitable??
When wasn't Microsoft profitable?
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#7
rtwjunkie
by: Arjai
Are you for real? Win 8 is gonna be less Metro? And More Pc?
Yep! It was leaked last month. Seems the new CEO is of a different mindset.
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#8
robert3892
Don't you mean Q1 for FY2014? Q3 is not until the end of September?
Posted on Reply
#9
RCoon
Forum Gypsy
by: robert3892
Don't you mean Q1 for FY2014? Q3 is not until the end of September?
Q3 of the Financial Year not the normal year. In Britain this is 1st April to 31st March.
Posted on Reply
#10
Melvis
by: rtwjunkie
Yep! It was leaked last month. Seems the new CEO is of a different mindset.
Actually it was leaked 6months ago or more, I remember reading up on this last yr and started a thread on it, so its nothing new really.
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#11
Hitman_Actual
wow, maybe we can see a dedicated gaming OS. low level API (DX12 yet to see)
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#12
Jorge
See those of you who didn't believe that selling defective products was profitable to the tune of BILLIONS - were wrong. What's sad is the FTC allows them to get away with this.
Posted on Reply
#13
RCoon
Forum Gypsy
by: Jorge
See those of you who didn't believe that selling defective products was profitable to the tune of BILLIONS - were wrong. What's sad is the FTC allows them to get away with this.
Go home Jorge, you're drunk
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#14
Hilux SSRG
by: RCoon
Go home Jorge, you're drunk
Forums need one drunkard, while his comments are rarely insightful they are entertaining.
Posted on Reply
#15
rtwjunkie
by: Melvis
Actually it was leaked 6months ago or more, I remember reading up on this last yr and started a thread on it, so its nothing new really.
I didn't know that. Thanks for the update!
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#16
TheBrainyOne
by: RCoon
When wasn't Microsoft profitable?
I thought Microsoft was never profitable. Or I think it was their Windows OS department, I don't remember.
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#17
rtwjunkie
Microsoft has almost always been MEGA-profitable, mostly due to Windows. They made Gates one of the richest men in the world.
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#18
RCoon
Forum Gypsy
by: TheBrainyOne
I thought Microsoft was never profitable. Or I think it was their Windows OS department, I don't remember.
You're half right, OS is where they make lots of money, along with Azure and other licensed services. However their console and phone sector are not so great. I remember when they released the Xbox original, they produced those at a huge loss, not to mention their tablet sector. They just seem bad at making a profit on hardware.
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#19
Dos101
by: TheBrainyOne
I thought Microsoft was never profitable. Or I think it was their Windows OS department, I don't remember.
You're thinking of the Xbox division. They lost money on every console sold for the original Xbox, as well I believe for the first iteration of the Xbox 360. After the redesigns they broke even and eventually started making money off them.
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#20
dwade
Their biggest mistake was bringing back Start button to those cavemen.
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#21
matar
by: dwade
Their biggest mistake was bringing back Start button to those cavemen.
Obviously your not a real PC user neither a real Gamer have fun with your tablet.
Microsoft is bringing back start button not for Cavemen it's because still over 90% of desktop PC's don't have touch screen , the hole world is using PC's and out side US hardly people buying touch screen desktops , and ever since they removed that Start Menu Desktop PC sales have been declining that's why Dell still offers Window 7 to users they are bringing it back to boost sales and make us real pc users happy not for Extraterrestrials.
Posted on Reply
#22
64K
by: matar
Obviously your not a real PC user neither a real Gamer have fun with your tablet.
Microsoft is bringing back start button not for Cavemen it's because still over 90% of desktop PC's don't have touch screen , the hole world is using PC's and out side US hardly people buying touch screen desktops , and ever since they removed that Start Menu Desktop PC sales have been declining that's why Dell still offers Window 7 to users they are bringing it back to boost sales and make us real pc users happy not for Extraterrestrials.
I'm curious about that over 90%. Did you get that from some source or was it a guess? I would guess that the percentage of people not using a touchscreen on their desktop would be much higher. None of my family or friends do and at work there are somewhere around 10,000 desktops being used and I've never heard of anyone using a touchscreen on their desktop but there certainly could be. I do know from the IT dept people that I've talked to that they have no plans whatsoever to use Win 8 but each new computer gets Win 7 so they are paying for a MS OS anyway.
Posted on Reply
#23
matar
by: 64K
I'm curious about that over 90%. Did you get that from some source or was it a guess? I would guess that the percentage of people not using a touchscreen on their desktop would be much higher. None of my family or friends do and at work there are somewhere around 10,000 desktops being used and I've never heard of anyone using a touchscreen on their desktop but there certainly could be. I do know from the IT dept people that I've talked to that they have no plans whatsoever to use Win 8 but each new computer gets Win 7 so they are paying for a MS OS anyway.
You are so right that's way I said OVER 90% it can be maybe 99%. as far as I know I don't know any one who has a desktop with a touchscreen yet.
Posted on Reply
#24
rtwjunkie
And in any case, how long before screens can give the same picture and video quality, the same sharp picture and fast response we expect of gaming screens, AND be touchscreen? It just seems the two are not compatible.

Besides that, what video and photo editors, or gamers for that matter, want fingerprints all over their screens?
Posted on Reply
#25
MxPhenom 216
Corsair Fanboy
by: matar
Obviously your not a real PC user neither a real Gamer have fun with your tablet.
Microsoft is bringing back start button not for Cavemen it's because still over 90% of desktop PC's don't have touch screen , the hole world is using PC's and out side US hardly people buying touch screen desktops , and ever since they removed that Start Menu Desktop PC sales have been declining that's why Dell still offers Window 7 to users they are bringing it back to boost sales and make us real pc users happy not for Extraterrestrials.
You should just stop.
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