Surface and Office 365 High Points in Microsoft's Q3 Report

By Rory Lidstone April 25, 2014

Microsoft gets a lot of flak for various reasons, but whether or not you’re a fan of the company, it’s hard to deny the fact that it knows how to turn a profit. In fact, the world is reminded of this at the end of every quarter when Microsoft posts earnings in the billions. This is, of course, the case once more as Microsoft has released Q3 financial figures for fiscal year 2014.

In particular, the software giant managed revenue of $20.4 billion for the quarter ended March 31, 2014, with net income of $5.66 billion. In other words, the third quarter was business as usual for Microsoft — or so it appears at first glance.

Digging deeper, it’s clear that Q3 2014 was a little different from the quarters that came before it. For example, Office 365 Home saw major growth during the period, as the service added one million new subscribers in just three months, bringing the total number to 4.4 million. Considering the fact that an Office 365 subscription is required for mobile Office access on iPhone, iPad and Android, however, that level of growth isn’t too surprising.

What is surprising is the fact that Surface revenue reached $500 million during the period — a year over year increase of 50 percent. Indeed, going into 2013, most thought the Surface would ultimately prove a major flop. Some analysts even cut their Surface RT sales forecasts in half. Then again, Microsoft didn’t break down its Surface revenue by model, so maybe the Surface Pro is still doing all the heavy lifting.

“This quarter’s results demonstrate the strength of our business, as well as the opportunities we see in a mobile-first, cloud-first world. We are making good progress in our consumer services like Bing and Office 365 Home, and our commercial customers continue to embrace our cloud solutions. Both position us well for long-term growth,” said Microsoft’s new chief executive office, Satya Nadella, in a statement. “We are focused on executing rapidly and delivering bold, innovative products that people love to use.”




Edited by Stefania Viscusi

TechZone360 Contributing Writer

SHARE THIS ARTICLE
Related Articles

Microsoft Research Project Allows for Inexpensive 3D Scanning from a Smartphone

By: Christopher Mohr    8/27/2015

It is now possible to perform 3D scanning from a smartphone, without additional hardware or an Internet connection, thanks to a new Microsoft Research…

Read More

Amazon's Scaled Back Consumer Device Efforts, Dash Button, and More

By: Paula Bernier    8/27/2015

Word is that Amazon is scaling way back on its consumer devices efforts, having let go of dozens of Lab126 engineers who worked on its Fire phone, acc…

Read More

The 4K War is Brewing, but Don't Expect a Crowned Winner

By: Special Guest    8/27/2015

The hype around 4K Ultra HD video is growing and we're seeing it gain traction in real ways. From the NFL Network and CBS using 4K cameras to capture …

Read More

Wallet Wars Part 2: Thanks to EMV, the Force is with Mobile Wallets

By: Special Guest    8/26/2015

In December 2015, when "Star Wars: The Force Awakens" hits movie theatres across the U.S., a very different type of force will 'awaken' the mobile wal…

Read More

Major Automakers Forge Alliance to Combat Cyberattackers

By: Joe Rizzo    8/25/2015

If you take a few minutes to think about what hackers go after, you'll realize that it is anything that has an Internet connection. Thanks to the Inte…

Read More