Microsoft today announced their FYQ1 2017 earnings results. Revenue was $20.5 billion GAAP, and $22.3 billion non-GAAP and operating income was $5.2 billion GAAP, and $6.0 billion non-GAAP. Revenue in More Personal Computing declined 2% (down 1% in constant currency) to $9.3 billion, with the following business highlights:
Microsoft mentioned that their Search advertising revenue excluding traffic acquisition costs grew 9% (up 10% in constant currency) driven by increased revenue per search and search volume. Bing continues to grow and it is profitable on a standalone basis as well.
Our search business grew again this quarter driven by rate and volume improvements in Bing. Though our growth rate has moderated, we continued to gain share and scale while delivering profit.
Microsoft noted than there has been 141 million monthly active users of the Cortana search box with billions of queries. They do expect their growth rate to be curtailed however by changes to their search contract with Yahoo after its one year anniversary soon.