Microsoft today announced Q2 2014 financial results with record revenue of 424.52 billion and a net income of $6.56 billion. Microsoft said that double-digit growth in Commercial and Devices and Consumer segments helped reaching record revenue.
Read the full press relapse below.
REDMOND, Wash. — January 23, 2014 — Microsoft Corp. today announced revenue of $24.52 billion for the quarter ended December 31, 2013. Gross margin, operating income, net income, and diluted earnings per share for the quarter were $16.24 billion, $7.97 billion, $6.56 billion, and $0.78 per share, respectively.
The following table reconciles these financial results reported in accordance with generally accepted accounting principles (“GAAP”) to non-GAAP financial results. We have provided this non-GAAP financial information to aid investors in better understanding the company’s performance.
“Our Commercial segment continues to outpace the overall market, and our Devices and Consumer segment had a great holiday quarter,” said Steve Ballmer, chief executive officer at Microsoft. “The investments we are making in devices and services that deliver high-value experiences to our customers, and the work we are doing with our partners, are driving strong results and positioning us well for long-term growth.”
“We delivered record revenue as demand for our business offerings remains high and we made strong progress in our Devices and Consumer segment,” said Amy Hood, chief financial officer at Microsoft. “These results reflect our focus on execution, cost discipline, and long-term shareholder value as we continue to drive the strategic transformation of the company.”
Devices and Consumer revenue grew 13% to $11.91 billion.
· Windows OEM revenue declined 3%, reflecting strong 12% growth in Windows OEM Pro revenue, offset by continued softness in the consumer PC market.
· Surface revenue more than doubled sequentially, from $400 million in the first quarter to $893 million in the second quarter.
· The company sold 7.4 million Xbox console units into the retail channel, including 3.9 million Xbox One consoles and 3.5 million Xbox 360 consoles.
· Bing search share grew to 18.2% and search advertising revenue grew 34%.
Commercial revenue grew 10% to $12.67 billion.
· SQL Server continued to gain market share with revenue growing double-digits.
· System Center showed continued strength with double-digit revenue growth.
· Commercial cloud services revenue more than doubled.
· Office 365 commercial seats and Azure customers both grew triple-digits.
“We significantly outpaced enterprise IT spend as we continue to take share from our competitors by delivering the devices and services our customers need as they transition to the cloud,” said Kevin Turner, chief operating officer at Microsoft. “Our commercial cloud services revenue grew more than 100% year-over-year, as customers are embracing Office 365, Azure, and Dynamics CRM Online, and making long-term commitments to the Microsoft platform.”