Wall Street and analysts always look forward to the earnings numbers of companies this time of year, and Microsoft is one of the biggest companies that many analysts follow. On Thursday, Microsoft unveiled its first quarter revenue for 2015, and it was impressive on many levels.
During its conference call and press release on Thursday, Microsoft talked about its very impressive first quarter results. The huge adoption of the cloud, mixed in with impressive Xbox One and Surface hardware sales numbers, propelled the company to $23.20 billion in revenue for the quarter.
First Quarter Results
Microsoft on Thursday announced that they had $23.20 billion of revenue for the quarter ended September 30, 2014. They had a gross margin of $14.93 billion, with operating income of $5.84 billion, and a diluted earnings per share of $0.54 per share. These numbers included a $1.14 billion cost due to restructuring and layoffs for personnel, and some of the costs involved with the purchase of Nokia’s business.
In a call with investors, Satya Nadella stated that the company is innovating faster, engaging with more companies, and putting customers first. He stated that Microsoft is focusing like never before, and the continued cloud momentum should help the company to build on the next quartes numbers for investors. All of this meant good news for Wall Street and analysts.
Consumer and Commercial Highlights
In a breakdown of higlights, Microsoft talked about its consumer highlights. Office 365 home and personal subscribers totalled over 7 million, which was a 25% growth over the past quarter. Surface Pro 3 units amazed the company with sales of $908 million. New licensing deals lead to positive growth, which was good news. Xbox One consoles topped 2.4 million, and that grew 102%. Lastly, phone hardware revenue was $2.6 billion, and is continuing to grow.
On the commercial front, Microsoft stated that server products grew like crazy, with a 13 percent growht for SQL Server, System Center, and Windows Server. Office Commercial product and services grew by 5 percent. The commercial cloud was the hit though, with a 128% growth with Azure and Dynamics CRM stealing the show. Lync, SharePoint and Exchange continued with double-digit growth, and Windows volume licensing increased 10%.
All of this led to a great quarter for Microsoft. The cloud and Xbox One were big, but Surface Pro 3 sales at $900 million stole the show, as the company lost a ton on it just last year.
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