Microsoft Corp (MSFT)
Market Cap
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52 Week Low 
Supplied by Morningstar Inc
2015 Annual Report
Earnings Release FY14 Q3
Results driven by search advertising and Office 365 Home
Office 365 Home
Currently 4.4 million Office 365 Home subscribers, growing ~1 million in Q3
Search advertising revenue up 38%
Bing U.S. market share at 18.6%, up 170 basis points
Xbox Live transactional revenue up 17%
Gross margin
Gross margin expansion driven by Office 365 Home and Bing

D&C Other revenue increased $294 million or 18%, due mainly to an increase in online advertising revenue and Subscription revenue. Online advertising revenue increased $144 million or 16%. Search advertising revenue increased 38%, due primarily to increased revenue per search resulting from ongoing improvements in advertising products and higher search volume, offset in part by a 24% reduction in display advertising revenue. Subscription revenue was $98 million for the three months ended March 31, 2014, reflecting subscriber growth of Office 365 Home.

D&C Other gross margin increased $111 million or 26%, due to an increase in revenue, offset in part by a $183 million or 15% increase in cost of revenue. D&C Other cost of revenue grew, due mainly to a $123 million or 21% increase in online advertising cost of revenue, reflecting support of online infrastructure.

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Devices and Consumer Other
RESULTS (in millions, except percentages)
Q314 Q313 Change
Revenue $ 1,950 $ 1,656 18%
Gross Margin $ 541 $ 430 26%
FY14 Earnings Release Schedule
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