Microsoft’s search engine revenue growth, which has already been slowing, has run into a brick wall due to the COVID-19 crisis.
Search advertising revenue excluding traffic acquisition costs increased only 1%, down from 6% YoY growth in the last quarter.
Microsoft says Search was negatively impacted by reductions in advertising spend, particularly in the industries most impacted by COVID-19.
They warn that the full effects of the COVID-19 crisis may not be fully reflected in the financial results until later quarters.
See Microsoft’s full earnings results here.