As Microsoft has just finished a huge press week, with the unveiling of Windows 10 for the press, the next week is starting off with a bang. On Monday, Microsoft treated shareholders to FY15 Q2 results, and these results proved impressive, with the commercial cloud leading the charge.
Microsoft posted revenue of $26.5 billion for the quarter ending December 31, 2014, with $16.3 billion in gross margins, $7.8 billion in operating income, and a $0.71 diluted earnings per share. It included $243 million in charges from the Nokia purchase, but proved a huge quarter for Microsoft.
The consumer sector for Microsoft was huge for the past quarter. Surface revenue shot up 24 percent to $1.1 billion, driven by the Surface Pro 3. Office 365 Home and Personal subscribers increased to over 9.2 million, up 30 percent. Search advertising grew 23 percent and grew in its marketshare as well.
The Xbox units for the holidays were big for Microsoft as well, with the company selling 6.6 million Xbox 360 and Xbox One consoles. Microsoft Lumia sold 10.5 million Lumia units as well. Windows though declined 13 percent in revenue, and Windows OEM non-pro revenue declined as well, with companies not updating systems yet.
Commercial Growth In The Cloud
The commercial sector for Microsoft hit a home run, as the company saw commercial cloud revenue grow 114 percent with the cloud taking off. Azure and Dynamic CRM Online, Office 365, and other cloud programs are seeing a $5.5 billion run rate. Office Commercial products though declined 1 percent, but was minor.
Server sales and products grew as well for Microsoft, with growth of revenues of over 9 percent, with double-digit growth of SQL Server and System Center. Microsoft saw Windows Volume lincensing revenue grow 3 percent, and saw annuity revenue growth increase, but saw transactional revenue decline.
It was a big quarter for Microsoft. Surface Pro 3, Xbox, and the Commercial Cloud were the winners for Microsoft, and that is good for shareholders.