Earlier today, Microsoft reported $20.49 billion in fiscal quarterly revenue (Q3 13). That figure was just shy of analysts’ consensus estimates of $20.5 billion; however, earnings-per-share beat estimates.
Despite the “miss,” revenues were up across the board, even in the Windows division though PC sales are in decline. (At the time of this report, the earnings call had yet to take place.) There was very little mention of the performance of Windows 8 or Windows Phones in the earnings statements and related material.
Here’s the breakdown by Microsoft division:
- Windows Division: revenue of $5.7 billion, which was a 23 percent increase vs. a year ago (YoY). Microsoft said, “Windows Division revenue increased, due mainly to the recognition of $1.1 billion of revenue related to the Windows Upgrade Offer. Revenue from Surface and increased commercial sales of Windows was offset by the impact on revenue of a decline in the x86 PC market.”
- Business Division (MS Office): $6.32 billion, an 8 percent increase YoY.
- Server & Tools Division: $5.04 billion, an 11 percent increase YoY, “driven by double-digit percentage revenue growth in SQL Server and System Center.”
- Windows Division: $5.70 billion, a 23 percent increase YoY.
- Online Services Division (Bing, ads): $832 million, an 18 percent increase. “Online advertising revenue grew 22 percent driven by an increase in revenue per search.” The divisional loss narrowed to $218 million. Microsoft repeated comScore data showing Bing’s search market share had grown to 16.9 percent. Online ad revenue grew to $784 million, powered by search, which was offset by declines in display ad revenue.
- Entertainment and Devices Division: $2.53 billion, an increase of 56 percent YoY.
Finally, Microsoft announced that Chief Financial Officer Peter Klein was leaving and would be replaced in the near term. His successor wasn’t named.