Microsoft Posts $20.49B Quarterly Revs: Online Ads Worth $784M, Rev Per Search Up

MSFT logoEarlier 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.

MSFT Q313 Revs

Finally, Microsoft announced that Chief Financial Officer Peter Klein was leaving and would be replaced in the near term. His successor wasn’t named.

Related Topics: Channel: Industry | Microsoft | Microsoft: Bing | Microsoft: Business Issues | Microsoft: Mobile | Microsoft: Windows | Microsoft: Windows Phone | Top News


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

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  • Chris Elwell

    They’ve got more to do, but MSFT continues to make progress. For the quarter, sales up over $100 million and operating loss improved by $120 million. Loss improved $450 million for the 9 months. You have to be rooting for them; the industry needs at least 2 healthy players.

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