Quarterly Earnings Predict Bright Future For Microsoft
Microsoft had a good quarter.
That’s not to say there were some major speed bumps throughout, though. Some of their industries were actually greatly affected, such as their consumer cell-phone market, which dropped a surprising 54% over the last few months. Even with that disheartening metric, Microsoft don’t seem too worried, as their cloud services business is soaring, and this quarter’s announcement of new high-end handsets and tablets/laptops are expected to shoot them even higher next quarter.
Microsoft’s cloud services netter them a total revenue of $4.6 Billion this quarter, surpassing the $4.56 Billion from the same period last year. On paper that might not seem like a huge increase, but $.04 Billion is a lot of money, and again, they’re just getting started. Check out what Microsoft had to say about their earnings:
- Windows OEM revenue declined 6%, performing better than the overall PC market, as the Windows 10 launch spurred PC ecosystem innovation and helped drive hardware mix toward premium devices
- Phone revenue declined 54% in constant currency reflecting our updated strategy
- Search advertising revenue excluding traffic acquisition costs grew 29% in constant currency with Bing US market share benefiting from Windows 10 usage
- Xbox Live monthly active users grew 28% to 39 million
As you can see, Microsoft looks very excited about the future of their cloud services and what Windows 10 can offer consumers and businesses. Mix that with the obscene amount of hype generated by their new devices, and it looks like Microsoft is going to have one hell of a Q2.