Microsoft announced their 3rd quarter earnings, beating Wall Street expectations. They reported $16.43 billion for the quarter ended March 31, 2011, which was a 13% increase from the same period of the prior year.
The Online Services Division, which is made up of Bing and MSN, had a 14% revenue growth year over year. Microsoft said the 14% growth was “primarily driven by increases in search revenue.” They also said Bing’s US search share increased to 13.9% this quarter. Although profits for that division shrunk even more, with a net loss of $726 million compared to $709 million the previous year. Revenues for that division were $648 million, up from $566 million the previous year.
Online ad revenue grew by 17% year over year, however the revenue per search of the combined Yahoo and Microsoft Bing marketplace was below expectations. Here is a chart showing the revenue by this division:
The largest growth for Microsoft was in the Entertainment & Devices Division which grew 60% year-over-year. The Kinect for Xbox 360 was the primary driver of that growth.
You can read the full release over here:
- Microsoft Q2 Revs Almost $20 Billion, “Bing Division” Still Losing Money Despite Search Revenue Increase
- Yahoo Announces Q1 2010 Earnings: Income Up 87%
- The Yahoo Search Revenue Disaster