Cloud and hardware sales drive Microsoft Q1 revenues of US$23bn

23 Oct 2014

Microsoft reported Q1 revenues of US$23.20bn based on strong cloud and hardware sales. The company had to bite the bullet on the integration of Nokia’s Devices and Services business to the tune of US$1.14bn.

“We are innovating faster, engaging more deeply across the industry, and putting our customers at the centre of everything we do, all of which positions Microsoft for future growth,” said Satya Nadella, chief executive officer of Microsoft.

“Our teams are delivering on our core focus of reinventing productivity and creating platforms that empower every individual and organisation.”

The software giant said Office 365 Home and Personal subscribers hit the 7m mark, up 25pc on the previous quarter.

“We delivered a strong start to the year, with continued cloud momentum and meaningful progress across our device businesses,” said Amy Hood, executive vice-president and chief financial officer of Microsoft.

“We will continue to invest in high-growth opportunities and drive efficiencies across the organisation to deliver long-term shareholder value.”

Healthy demand for Microsoft technology

A healthy consumer and business appetite for the company’s new Surface Pro 3 provided a nice revenue of US$908m.

The company sold more than 2.4m Xbox consoles, a 102pc increase year-on-year.

Windows Phone hardware revenue provided a whopping US$2.4bn worth of revenue.

Overall commercial revenue grew 10pc to US$12.2bn.

The big game changer has also been cloud, where commercial cloud revenues grew by 128pc, driven by Office 365, Azure and Dynamics CRM.

Windows volume licensing shot up by 10pc during the quarter.

“Customers are embracing our latest technologies, from Surface Pro 3 and Office 365 to Azure and SQL Server,” said Kevin Turner, chief operating officer of Microsoft.

“Through great execution by our sales teams and our partners, we have been able to deliver our truly differentiated value to the marketplace.”

Microsoft HQ image via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years