Microsoft Expects Bing To Be Profitable, On A Standalone Basis, In FY16

Office 365 and Bing Growth

When it comes to Online Services business which included Bing, Microsoft has lost billions of dollars over the years. Despite the loss. Microsoft was more focused on building the business and now Bing has turned to be platform that powers various Microsoft products such as Xbox, Windows, Windows Phone, and many others. At earnings call today, Microsoft CEO Satya Nadella revealed that they are expecting Bing to be profitable on a standalone basis in FY15.

I am pleased to see the progress with Bing now more than 19% U.S. query share and strong RPS Growth. Going forward we will drive our Bing related investments to contribute to the core digital work and life experiences such as Cortana, Smart Search, Delve, Power Q&A and many others. We expect Bing to be profitable, on a standalone basis, in FY16.

Also, as you can notice in the slide above, Bing search advertising revenue was up 40% due to high RPS, search volume and expiration of revenue guarantee to Yahoo in the US.