- Search advertising revenue up 47%
- Driven by continued revenue per search improvements and query volume growth
- Bing U.S. market share at 18.0% up 210 basis points
- Xbox LIVE transactional revenue, up >25%
- Over 2 million Office 365 Home Premium subscribers
D&C Other revenue increased $235 million or 17% mainly due to higher advertising revenue, which increased $106 million or 13%. While the growth was due to search advertising revenue, display advertising revenue decreased 31%. Microsoft cited that lower display advertising revenue is due to decline in Outlook.com advertising revenue. Outlook.com is now only serving search ads instead of display ads as we used have in Hotmail. With the launch of Bing Apps and Smart Search for Windows 8.1 devices, I expect the advertising of Microsoft revenue to go up in the upcoming quarter.