Microsoft announces Q2 2013 earnings

On January 23 Microsoft announced its financial results for the last quarter of 2013.

Total revenue for the quarter ended December 2013 was $24.52 billion. Looking at the financials details we can see that gross margin was $16.24 billion, operating income $7.97 billion, net income $6.56 billion, and diluted earnings per share for the quarter were $0.78 each.

According to the declaration of Steve Ballmer, CEO at Microsoft, the holiday season has been an occasion for Microsoft to leave behind competition in the market of Devices and Consumer, as their 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, 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%.

This is what Steve Ballmer, chief executive officer at Microsoft said:

Our Commercial segment continues to outpace the overall market, and our Devices and Consumer segment had a great holiday quarter, 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.

Also 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.

Kevin Turner, chief operating officer at Microsoft, declares:

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, 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.