Microsoft Q1 revenues surge to US$21.7bn thanks to Office 365, Xbox and Surface

23 Apr 2015

Healthy momentum and demand for Office 365, Xbox and Surface hardware saw Microsoft’s Q1 revenues surge 6pc year-on-year to US$21.7bn.

Office 365 consumer subscribers increased to more than 12.4m, up 35pc.

Windows OEM Pro revenue declined 19pc, as Pro returned to pre-Windows XP end-of-support levels and the business PC market declined.

Future Human

Search advertising revenue grew 21pc, with Bing US market share at 20.1pc, up 150pc on last year.

Xbox Live usage grew by more than 30pc, driven by increased users and deeper user engagement.

Surface revenue of US$713m was up 44pc, driven by the Surface Pro 3.

Phone hardware revenue was US$1.4bn, with 8.6m Lumia units sold.

Building the next generation of platforms

Commercial cloud revenue grew 106pc, driven by Office 365, Azure and Dynamics CRM Online, and is now on an annualised revenue run rate of US$6.3bn.

Server products and services revenue grew 12pc, with premium versions of Windows Server, System Center Server and SQL Server together growing 25pc.

“Customers continue to choose Microsoft to transform their business and as a result we saw incredible growth across our cloud services this quarter,” said Satya Nadella, chief executive officer at Microsoft.

“Next week at Build we’re excited to share more about how we’re empowering every individual and organisation on the planet to achieve more with the next generation of our platforms.”

Microsoft image via Shutterstock

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