Microsoft, buoyed by growth in cloud-based products and mobile – as well as the inclusion of Nokia Devices and Services into its financial results – saw year-on-year revenue growth of 6 percent, to $21.7 billion, during its fiscal Q3 2015.
“We are clearly taking Office everywhere,” said Satya Nadella (pictured), Microsoft’s chief executive, who had mobile devices very much on his mind.
“Core to our mobile first strategy is to ensure that our service end points are on every mobile device, and to that end we have seen continued momentum with more than 100 million downloads of Office on iPhones, iPads, and Android tablets,” he said at the company’s earnings call.
Commercial cloud revenue more than doubled, driven by Office 365, Azure and Dynamics CRM Online. This business segment now has an annualised run-rate of $6.3 billion.
Revenue from Microsoft’s Surface tablets was $713 million, up 44 per cent compared with Q3 2014, driven by Surface Pro 3.
“We are looking forward to Surface 3 availability next month,” added Nadella, “a device that has received positive reviews for being a superior, versatile device at a lower price point.”
The CEO also looked to the launch of Windows 10, which, he said, would be service available across “an array of devices and will usher in a ‘new era’ of more personal computing.”
“An era,” he added, “where the mobility of the experience, not the device, is paramount.”
Revenue from phone hardware, courtesy of the Nokia handset unit acquisition, was $1.4 billion. Microsoft sold 8.6 million Lumia smartphones in Q3, up 18 per cent year-on-year.
Operating income was down 5 per cent, to $6.6 billion, which included a $190 million restructuring charge related to Nokia Devices and Services.
Net income was down 12 per cent, to $4.9 billion, partly due to R&D increases and costs related to job cuts announced last year.