Microsoft Q3 2011 Earnings: Search & Online Up 14% In Revenue But Still Losing Profits

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 […]

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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:

Msft Q32011

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.

Microsoft’s partner, Yahoo reported earnings last week, they turned out to be a search disaster.

You can read the full release over here:

Screen Shot 2011 04 28 At 4.32.33 PM

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About the author

Barry Schwartz
Staff
Barry Schwartz is a Contributing Editor to Search Engine Land and a member of the programming team for SMX events. He owns RustyBrick, a NY based web consulting firm. He also runs Search Engine Roundtable, a popular search blog on very advanced SEM topics. Barry can be followed on Twitter here.

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