Microsoft’s FY2014 Q1 Earnings Report Includes 47% Growth In Search Ad Revenue

Yesterday’s Microsoft FY2014 Q1 earnings report showed the company generated $18.53 billion in total revenues, with 47 percent growth in search advertising revenue.

Executive vice president and CFO Ann Hood said Microsoft experienced broad based revenue growth from a geographic perspective, with better than expected results in a number of areas.

“This quarter, revenue growth in [the devices and consumer] segment was driven by both an increase in advertising revenue and also volumes in our online marketplace,” said Hood during the earnings call, “Search advertising revenue grew 47 percent, driven by continued revenue per search improvement and query volume growth.”

She went on to say Bing now owns 18 percent of the US search query market share.

With a new reporting framework this year, Microsoft categorized search advertising in the devices and consumer segment which experienced a 4 percent growth overall, climbing to $7.46 billion in FY2014 Q1. Commercial revenue grew 10  percent to $11.2 billion, with 103 percent growth for Microsoft’s commercial cloud revenue.

“Across our commercial portfolio, we saw healthy renewals, a continued shift to premium products, and strong adoption of our cloud services,” said general manager of investor relations Chris Suh.

Hood claimed search revenue should continue to grow.

More details on yesterday’s earnings call with Microsoft’s Ann Hood and Chris Suh can be found on our partner site at Marketing Land: Microsoft Reports “Better Than Expected” Results With FY2014 Q1 Revenue Totaling $18.53.