Microsoft has today reported its financial performance for the quarter ended September 30, 2015. And despite some major layoffs, the Redmond giant still managed to beat expectations by reporting $0.67 in adjusted per-share profit off non-GAAP revenue of $21.66 billion in the three-month period.

The Street had expected the Redmond software behemoth to earn an adjusted $0.59 per share, on revenue of $21.03 billion. Clearly, Microsoft went past both those numbers. That being said, company’s revenues by both GAAP ($2.04 Billion) and Non-GAAP metrics went down significantly compared to its year-ago first fiscal quarter, when it had clocked $23.2 Billion in revenues.

Here’s a brief break-down of the major highlights from Microsoft’s financial report :

  • Revenue was $20.4 billion GAAP, and $21.7 billion non-GAAP
  • Operating income was $5.8 billion GAAP, and $7.1 billion non-GAAP
  • Net income was $4.6 billion GAAP, and $5.4 billion non-GAAP
  • Earnings per share was $0.57 GAAP, and $0.67 non-GAAP

CEO Satya Nadella said in a press statement,

We are making strong progress across each of our three ambitions by delivering innovation people love. Customer excitement for new devices, Windows 10, Office 365 and Azure is increasing as we bring together the best Microsoft experiences to empower people to achieve more.

Here’s our updated chart on the earnings. Take a look :

Also, starting this financial reporting, Microsoft has a new internal structure under which the company has divide its businesses into 3.5 main business segments, which are :

  • Productivity and Business Processes (PBP), which contains commercial Office revenue, consumer Office revenue, and Dynamics.
  • Intelligent Cloud (IC), which contains service revenue and ‘Enterprise Services.’
  • More Personal Computing (MPC), which contains Windows, Devices, Gaming, and Search.
  • Corporate and Other, which contains everything else, and larger corporate functions.

And this is how each of these individual assets performed :

  • PBP: $6.3 billion in revenue, a 3 percent fall on a Y-o-Y basis. Using constant currency, revenue from this group rose 4 percent comparatively.
  • IC: $5.9 billion in revenue. an 8 percent fall on a Y-o-Y basis. Using constant currency, revenue from this group grew 14 percent.
  • MPC: $9.4 billion in revenue. a significant 17 percent fall on a Y-o-Y basis.. Using constant currency, revenue from this group fell 13 percent.

While the company lost money on all fronts, Windows department obviously took the biggest hit.

All in all, it was a decent quarter for Microsoft, even though revenues fell on a Y-o-Y basis, stocks have risen thus showing positive signs. Moreover, with Windows 10 set to enter the paid model soon and surface book receiving favourable reviews, next quarter can be expected to be better.

Leave a Reply

Your email address will not be published. Required fields are marked *