Microsoft Announces Q4 Financial Results Witth A Revenue Of $23.38 Billion

Microsoft today announced its fourth quarter financial results in which it posted a revenue of $23.38 billion. Gross margin, operating income, and diluted earnings per share (“EPS”) for the quarter were $15.79 billion, $6.48 billion, and $0.55 per share, respectively. As Microsoft has completed the acquisition of Nokia Devices and Services business, revenue and cost of revenue from the acquired business, including amortization of intangible assets, are reported in the new Phone Hardware segment. While NDS generated a revenue of $1.99 billion, Microsoft lost $692 million from it.

“We are galvanized around our core as a productivity and platform company for the mobile-first and cloud-first world, and we are driving growth with disciplined decisions, bold innovation, and focused execution,” said Satya Nadella, chief executive officer of Microsoft. “I’m proud that our aggressive move to the cloud is paying off – our commercial cloud revenue doubled again this year to a $4.4 billion annual run rate.”

“Our solid execution and expense discipline allowed us to deliver a strong finish to the fiscal year,” said Amy Hood, executive vice president and chief financial officer at Microsoft. “As we enter fiscal 2015, we are focused on aligning our resources to strategic investments that we believe will deliver the next wave of innovation, growth, and long-term shareholder value.”

Highlights,

Devices and Consumer revenue grew 42% to $10.00 billion, with the following business highlights:

  • Windows OEM revenue grew 3%, driven by 11% growth in Windows OEM Pro revenue.

  • Office 365 Home and Personal subscribers totaled more than 5.6 million, adding more than 1 million subscribers again this quarter.

  • The acquired Phone Hardware business contributed $1.99 billion to current year revenue.

  • Bing search advertising revenue grew 40%, and U.S. search share grew to 19.2%.

Commercial revenue grew 11% to $13.48 billion, with the following business highlights:

  • Commercial cloud revenue grew 147% with an annualized run rate that exceeds $4.4 billion.

  • Windows volume licensing revenue grew 11%.

  • Server products revenue, including Azure, grew 16%, with double-digit growth for SQL Server and System Center.

Read the full result here.

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