It's all about the Spin...
Oh, don't get me wrong - we knew the Nokia bomb had been thrown so I'm not overly surprised by the news. But I guess it's what you focus on isn't it:
◾Surface revenue grew 117% to $888 million, driven by Surface Pro 3 and launch of the Surface 3
◾Total Xbox revenue grew 27% based on strong growth in consoles, Xbox Live transactions and first party games
◾Search advertising revenue grew 21% with Bing U.S. market share at 20.3%, up 110 basis points over the prior year
◾Office 365 Consumer subscribers increased to 15.2 million, with nearly 3 million subscribers added in the quarter
◾ Commercial revenue increased slightly (up 4% in constant currency) to $13.5 billion, with the following business highlights:
◾Commercial cloud revenue grew 88% (up 96% in constant currency) driven by Office 365, Azure and Dynamics CRM Online and is now on an annualized revenue run rate of over $8 billion
◾Server products and services revenue grew 4% (up 9% in constant currency), with stable annuity performance offsetting declines in transactional revenue
◾Dynamics revenue grew 6% (up 15% in constant currency), with the Dynamics CRM Online install base growing almost 2.5x
◾Office Commercial products and services revenue declined 4%
◾Windows volume licensing revenue declined 8%
◾Windows OEM revenue decreased 22%
Al in all? I'm not particularly panicked about the above - some downturns, but nothing that taken me by surprise. I think that main thing I can take from this (because I choose to), is that their diversified efforts are bringing home the bacon - Windows revenue might be in decline, but if there are 3 or four other billion-dollar business going great guns, then the future is just fine for Microsoft - even if no one is sure what the end picture will look like.