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

Tech Gifts for Couples This Holiday

By: Special Guest    12/13/2017

If you're wondering what you should get your loved one this holiday, it's time you reframe the question. Stop thinking of the holiday as an occasion t…

Read More

Amid Cryptocurrency Mania, Coinsquare's goNumerical Raises CAD $10.5M

By: Paula Bernier    12/5/2017

The company that operates the Canadian digital currency exchange known as Coinsquare says it has raised CAD $10.5 million in new funding.

Read More

Your New Heart Monitor is an Apple Watch. Really.

By: Doug Mohney    12/4/2017

Looking at a new smartwatch or fitness wearable for the holidays? If you are concerned about your heart health due to family history or reason, Apple …

Read More

Amazon Unleashes Alexa for Business - Consequences Abound

By: Doug Mohney    11/30/2017

Today, Amazon Web Services (AWS) announced Alexa for Business, bringing Amazon's intelligent assist into the office. This shouldn't be a surprise to T…

Read More

Pai Makes His Case for Title II Repeal

By: Paula Bernier    11/21/2017

FCC Chairman Ajit Pai today made clear his plans to repeal Title II net neutrality rules. The commission is expected to pass his proposal at its Dec. …

Read More