The fourth quarter of Fiscal Year 2015 for Microsoft has come to an end, and their earnings call on Tuesday was one that analysts were looking forward to hearing. On their earnings call, Microsoft posted $22.2 billion in gross revenues but included large charges with the Nokia purchase.
The large $7.5 billion non-cash impairment charge related to the Nokia Devices and Services acquisition hung over the earnings call as Microsoft moved to getting the Nokia stuff off the books. The overall cloud and hardware results though were reasons to cheer.
In the fourth quarter, Microsoft saw the consumer sector increase and posted several highlights of their quarter. It saw Surface revenue grow 117% to $888 million, and saw the Surface Pro 3 and Surface 3 launch that revenue. But, Windows OEM revenue did drop 22% due to Windows XP end of life support.
Xbox revenue grew 27 percent, caused by strong console sales and big selling games. Search advertising with Bing grew 21 percent, and Bing in the US hit a 20.3 percent marketshare over 110 basis points from last year. Lastly, Office 365 subscriptions increased to 15.2 million, with 3 million new ones.
The enterprise is where Microsoft saw a lot of big growth for the past quarter. It saw commercial cloud revenue grow 88 percent, with a revenue run rate of $8 billion. Server products and services grew 4 percent in revenue, which grew slightly less due to currency transactions.
Other enterprise news saw dynamics revenue grow 6 percent, with Dynamics CRM Online installs up 2.5x. Office commercial products did decline 4 percent, but saw this decline due to transitions to Office 365. Lastly, Windows volume licensing dropped 8 percent, due to Windows XP transitions.
The year saw $93.6 billion in revenue and $18