What Is Microsoft Doing Right | Tech Teardown 1/24/14 | The Motley Fool

TL;DR

Microsoft had a strong quarter with $24.5 billion in revenue and 78 cents earnings per share. The Surface is starting to improve, and Windows Phone revenue increased.

Transcript

Aaron Kennedy here today with Evan new we're doing tech parown for Friday January 24th let's get right to our first headline software giant Microsoft reported earnings yesterday after the market closed and shares are enjoying gains today how did Microsoft do last quarter so it was actually a pretty good quarter Revenue came in at 24.5 billion earni... Read More

Key Insights

• 😇 Microsoft reported strong earnings, with revenue of $24.5 billion and earnings per share of 78 cents, exceeding expectations.
• ⏫ The Surface is starting to show improvement, with revenue more than doubling to about $893 million.
• 🤑 Windows Phone revenue increased by $340 million, including money from Android licensing and patents.
• ❤️‍🩹 Microsoft's future uncertainties include the appointment of a new CEO and the upcoming Windows XP end of support.
• ❓ Carl Icahn proposed a buyback for Apple, starting with $150 billion but now at least $50 billion for this fiscal year.
• 🫠 Facebook's mobile ad network has the potential to provide a new distribution channel and be a threat to Google's admob.

Questions & Answers

Q: How did Microsoft perform last quarter?

Microsoft had a strong quarter, reporting $24.5 billion in revenue and 78 cents earnings per share, above expectations.

Q: How is the Surface doing now compared to before?

The Surface is improving, with revenue more than doubling sequentially to about $893 million.

Q: Did Windows Phone revenue increase?

Yes, Windows Phone revenue increased by $340 million, including money from Android licensing and patents.

Q: Is the Surface profitable?

The Surface is still operating at a negative gross margin, but Microsoft did not address the question of when it will become profitable.

Q: What was the total number of NextGen consoles sold last quarter?

There were about seven or eight million total NextGen consoles sold last quarter, with Microsoft's Xbox One selling about 3.9 million units.

Q: What is the outlook for Microsoft going forward?

While Microsoft had a solid quarter, uncertainties remain, such as the appointment of a new CEO and the upcoming Windows XP end of support.

Q: What did Carl Icahn propose to Apple shareholders?

Carl Icahn proposed a $150 billion buyback, but has now come down to at least $50 billion for this fiscal year. He believes Apple is the most overcapitalized company and should use its cash to buy back shares.

Q: How does Facebook's mobile ad network impact the market?

Facebook's mobile ad network has the potential to provide developers with a new platform to make money. It is a threat to Google's admob, as it targets mobile and focuses on more engaging and interactive ads.

Summary & Key Takeaways

• Microsoft reported $24.5 billion in revenue and 78 cents earnings per share, above expectations.

• The Surface is improving, with revenue more than doubling to about $893 million.

• Windows Phone revenue increased by $340 million, including money from Android licensing and patents.