Microsoft Corp (MSFT)
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Supplied by Morningstar Inc
2015 Annual Report
Earnings Release  FY11 Q3
Double-digit revenue growth driven by online advertising
Bing continues to gain market share in the US, now at 13.9%, up almost 600 basis points since launch
Online advertising revenue grew 17%, primarily driven by growth in search and display
RPS of combined Bing/Yahoo! marketplace below expectations
Delayed international integrations to focus on improvements in US/Canada

OSD revenue increased primarily as a result of growth in online advertising revenue. Online advertising revenue grew $84 million or 17% to $586 million, reflecting continued growth in search and display revenue, offset in part by decreased third party advertising revenue. Search revenue grew due to increased volumes reflecting general market growth and relative share gains in the U.S., offset in part by decreased revenue per search primarily related to challenges associated with optimizing the adCenter platform for the new mix and volume of traffic from the combined Yahoo! and Bing properties. Bing's estimated U.S. market share increased approximately 25%.

OSD operating loss increased due to higher operating expenses, offset in part by increased revenue. Cost of revenue grew $292 million driven by costs associated with the Yahoo! search agreement and increased traffic acquisition costs. General and administrative expenses decreased $154 million due mainly to transition expenses in the prior year associated with the inception of the Yahoo! Commercial Agreement. Sales and marketing expenses decreased $39 million or 13% primarily due to lower amortization of intangible assets.

Download Segment Information:Excel (27KB)
Online Services Division
RESULTS (in millions, except percentages)
Q311 Q310 Change
Revenue $ 648 $ 566 14%
$ (726) $ (709) (2)%
FY11 Earnings Release Schedule
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