FY13 Q4 - Online Services Division Performance - Investor Relations – Microsoft
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Earnings Release FY13 Q4
Online Services Division Performance
Continued RPS and operating performance improvement
- Bing U.S. market share at 17.9%, up 230 basis points y/y
- Adjusted operating loss improvement of approximately $650 million or 34%*
- Online advertising revenue grew 16%
Online advertising revenue grew $409 million or 16% to $3.0 billion, reflecting an increase in search advertising revenue, offset in part by a decrease in display advertising revenue. Search revenue grew primarily due to increased revenue per search, resulting from ongoing improvements in ad products, while display advertising revenue decreased primarily due to industry-wide market pressure.
OSD’s operating loss decreased, primarily due to the prior year goodwill impairment charge of $6.2 billion. Operating loss was further reduced by higher revenue and lower cost of revenue and operating expenses. Cost of revenue decreased $302 million or 12%, driven by a $271 million decrease in traffic acquisition costs as well as lower Yahoo! reimbursement costs. Sales and marketing expenses were $120 million or 15% lower, due mainly to decreased corporate sales and marketing activities. Research and development costs increased $94 million or 7%, due primarily to higher headcount-related expenses resulting mainly from increased headcount.
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FY14 Earnings Release Schedule
- Q1-Thursday, October 24
- Q2-Thursday, January 23
- Q3-Thursday, April 24
- Q4-Tuesday, July 22