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Google, Microsoft both post big profit jumps

post #1 of 46
Thread Starter 
Tech giants Google and Microsoft reported their quarterly earnings on Thursday, showing big jumps in profits thanks to solid performance in their core divisions.

google


The Mountain View-based search company reported "a very strong start to 2013," according to CEO Larry Page. Google's revenue for the quarter came in at $13.97 billion, up 31 percent year-over-year. Quarterly profit stood at $3.35 billion, up from $2.89 billion for the same quarter in 2012.

The search leader's rate of paid clicks was up 20 percent from a year previous, while the price advertisers pay per click was down about four percent. Google's big moneymaker, advertising revenue, was up 16 percent.

Google's Motorola division continued to lose money in the last quarter. Motorola Mobile posted an operating loss of $271 million on revenues of $1.02 billion. Google is selling Motorola's set-top box business to Arris Group for $3.25 billion in a deal that is expected to close some time in April.

Thomson Reuters-surveyed analysts had projected that Google would post earnings of $10.66 per share and revenues of $14.31, according to The Wall Street Journal. Shares closed down 2.13 percent on Thursday at $765.91, though they were up 1.22 percent in after hours trading as of press time.

Software giant Microsoft also posted a boost in profits for the past quarter, with third-quarter earnings at $6.06 billion up 19 percent year-over-year. Microsoft saw revenues increase 18 percent year-over-year to $20.49 billion.

Microsoft's Business Division saw revenues of $6.32 billion, a year-over-year increase of eight percent, while the Server & Tools division grew 11 percent to $5.04 billion in revenue. Revenue for the Windows Division was up 23 percent year-over-year to $5.7 billion, though adjusted they're flat year-over-year at $4.6 billion.. The Entertainment and Devices Division ? which includes Microsoft's Xbox console ? saw revenues up 56 percent year-on, with $2.53 billion generated. The company's Online Services Division saw $832 million in revenue, up 18 percent year-over-year.

Microsoft's CFO Peter Klein will be leaving at the end of June, the company announced in its conference call. The company will name a new CFO from within its current financial team within the next few weeks.

AppleInsider will be providing immediate coverage of Apple's quarterly results and conference call on April 23.
post #2 of 46
According to the Verge, Windows revenue was flat:
http://www.theverge.com/2013/4/18/4239972/microsoft-q3-2013-financials-windows-revenue-flat-cfo-peter-klein
post #3 of 46
I'll take credit for the MS profit jump. I bought an OEM license of Windows 7 for bootcamp.

Sorry gang.
post #4 of 46
That is surprisingly good, considering all the negativity surrounding Windows 8 and general decline in laptop and desktop sales.

Any details where the growth comes from? Numbers of sold copies over OEM and retail compared to last year? I can imagine OEMs making more money by reducing quantity but improving quality (and margins) of sold machines, but MS makes money per sold copy either way, so from their perspective quantity should mostly be more important. Unless they managed to sell more Pro/Ultimate copies at expense of lower SKUs.
post #5 of 46
Quote:
Originally Posted by nikon133 View Post

That is surprisingly good, considering all the negativity surrounding Windows 8 and general decline in laptop and desktop sales.

Any details where the growth comes from? Numbers of sold copies over OEM and retail compared to last year? I can imagine OEMs making more money by reducing quantity but improving quality (and margins) of sold machines, but MS makes money per sold copy either way, so from their perspective quantity should mostly be more important. Unless they managed to sell more Pro/Ultimate copies at expense of lower SKUs.
According to the Verge, Windows revenue was flat.
post #6 of 46
Quote:
Originally Posted by ChristophB View Post

I'll take credit for the MS profit jump. I bought an OEM license of Windows 7 for bootcamp.

Sorry gang.

There's one game that I would like to buy and play (AOE II HD), and it's Windows only, but I just can't get myself to actually buy a Windows install, no way in hell. If it was $19, then maybe I might consider it.


Edited by Apple ][ - 4/18/13 at 4:29pm
post #7 of 46

A healthy tech sector that raises a few other boats along with Apple is always welcome, as long as Apple raises the highest... :)

post #8 of 46
Quote:
Originally Posted by Rogifan View Post

According to the Verge, Windows revenue was flat:
http://www.theverge.com/2013/4/18/4239972/microsoft-q3-2013-financials-windows-revenue-flat-cfo-peter-klein

3Q2013 Revenue — $20.49 billion

3Q2012 Revenue — $17.41 billion

I get an increase in revenue of 17.69%. That looks pretty damn good to me. Compared 3Q2011 to Q32012 was only 6%. Why are these news outlets (save for AI) trying to paint a bad picture that isn't there?

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post #9 of 46
Quote:
Originally Posted by SolipsismX View Post


3Q2013 Revenue — $20.49 billion

3Q2012 Revenue — $17.41 billion

I get an increase in revenue of 17.69%. That looks pretty damn good to me. Compared 3Q2011 to Q32012 was only 6%. Why are these news outlets (save for AI) trying to paint a bad picture that isn't there?

WINDOWS revenue was written as flat, those numbers are for Microsoft as a whole, they were making an OS point it seems.

post #10 of 46
Quote:
Originally Posted by jfc1138 View Post

WINDOWS revenue was written as flat, those numbers are for Microsoft as a whole, they were making an OS point it seems.

Ah yes, it does say Windows revenue in the title on The Verge. Mea culpa. Still, not a fan that they pull out a negative for the title when there are clearly positives. For instance, what other areas accounted for the substantial rise if Windows was flat YoY? Or, how was Windows able to remain flat YoY when Windows 8 is such a complete mess? 1smoking.gif

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post #11 of 46
Quote:
Originally Posted by SolipsismX View Post

Ah yes, it does say Windows revenue in the title on The Verge. Mea culpa. Still, not a fan that they pull out a negative for the title when there are clearly positives. For instance, what other areas accounted for the substantial rise if Windows was flat YoY? Or, how was Windows able to remain flat YoY when Windows 8 is such a complete mess? 1smoking.gif
According to CNBC their entertainment division did well.
post #12 of 46

If you depend on the Verge for your financial information be prepared to be disappointed.

post #13 of 46
Quote:
Originally Posted by Rogifan View Post

According to CNBC their entertainment division did well.

That is also interesting considering that next-gen consoles are (or will be shortly) announced, and everyone already seem to be in PS4/X720 overdrive hype.
post #14 of 46
Quote:
Originally Posted by SolipsismX View Post

Ah yes, it does say Windows revenue in the title on The Verge. Mea culpa. Still, not a fan that they pull out a negative for the title when there are clearly positives. For instance, what other areas accounted for the substantial rise if Windows was flat YoY? Or, how was Windows able to remain flat YoY when Windows 8 is such a complete mess? 1smoking.gif

Exactly... however you spin it, Windows 8 seems to be selling at least as good as "saviour" Windows 7. It is still good for them even if we leave it at that.
post #15 of 46
Quote:
Originally Posted by SolipsismX View Post

Ah yes, it does say Windows revenue in the title on The Verge. Mea culpa. Still, not a fan that they pull out a negative for the title when there are clearly positives.

Why not? They do it to Apple all the time.

Wondering why the drop in Google's price per click wasn't highlighted. That's easily as important a metric as gross margin - and Apple gets hammered every time gross margin drops even slightly.
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post #16 of 46
Quote:
Originally Posted by jragosta View Post


Why not? They do it to Apple all the time.

Wondering why the drop in Google's price per click wasn't highlighted. That's easily as important a metric as gross margin - and Apple gets hammered every time gross margin drops even slightly.

Yeah. Like when Apple reports the largest profits ever for a tech company in recorded history, some people and media with an agenda don't mention much about that, they just look for any small thing that can be spun as a negative, and boom! They've found their headline.

post #17 of 46
Originally Posted by AppleInsider View Post

Software giant Microsoft also posted a boost in profits for the past quarter, with third-quarter earnings at $6.06 billion up 19 percent year-over-year. Microsoft saw revenues increase 18 percent year-over-year to $20.49 billion.

 

Enjoy those profits while you can, Microsoft.  Your post-PC devices and OS-es aren't even moving the needle.

 

Quote: AppleInsider "Apple's iPad expands lead in tablet use at the expense of Amazon, Android, Microsoft Surface
Microsoft's beleaguered Surface is being used at the same rate as Motorola's failed Xoom. Together, the two share less than one percentage point.

 

Full AppleInsider story:

 http://appleinsider.com/articles/13/04/18/apples-ipad-expands-lead-in-tablet-use-at-the-expense-of-amazon-android-microsoft-surface

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post #18 of 46
Quote:
Originally Posted by jragosta View Post

Why not? They do it to Apple all the time.

Wondering why the drop in Google's price per click wasn't highlighted. That's easily as important a metric as gross margin - and Apple gets hammered every time gross margin drops even slightly.

I don't think it's right or fair when it happens to Apple either.

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #19 of 46
But their profit won't be able to jump to Apple amount in the next 10 years .
post #20 of 46
Quote:
Originally Posted by Apple ][ View Post

There's one game that I would like to buy and play (AOE II HD), and it's Windows only, but I just can't get myself to actually buy a Windows install, no way in hell. If it was $19, then maybe I might consider it.

I need it for what I do for work or there's no way in hell I'd own it. I wish the IT guys would go platform independant. Soon I'll have just a slice in the cloud when I need access to an MS machine. Counting the seconds.
post #21 of 46
Quote:
Originally Posted by raymondinperth View Post

But their profit won't be able to jump to Apple amount in the next 10 years .

It doesn't need to.
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post #22 of 46

"

MICROSOFT PARTNERS SAY WINDOWS 8 CAUSED ‘MILLIONS OF CUSTOMERS’ TO SWITCH TO APPLE"

 

http://bgr.com/2013/04/18/windows-8-oem-criticism-447837/

post #23 of 46
Quote:

I can't imagine what it would take for me to go Wintel. Fortunately neither can Microsoft.
post #24 of 46
Quote:
Originally Posted by Apple ][ View Post

There's one game that I would like to buy and play (AOE II HD), and it's Windows only, but I just can't get myself to actually buy a Windows install, no way in hell. If it was $19, then maybe I might consider it.

Doesn't it run under Wine/Crossover?

 

*poke poke*  Yup it does:

http://www.codeweavers.com/compatibility/browse/name/?app_id=11592

post #25 of 46
Quote:
Originally Posted by Slurpy View Post

"

MICROSOFT PARTNERS SAY WINDOWS 8 CAUSED ‘MILLIONS OF CUSTOMERS’ TO SWITCH TO APPLE"




http://bgr.com/2013/04/18/windows-8-oem-criticism-447837/

I agree that Windows 8 is a train wreck but it's hard to swallow that it has pushed millions of Windows customers to switch to Macs in the last 6 month. Windows customer tend to make buying decisions like Ents. I would imagine very few were psyched about Windows 8 because they really wanted a new PC, then disappointed so they went out and bought a Mac. If the Mac numbers this quarter are excessively higher than expectations then maybe, but I'm guessing it would have more to do with the holiday switch and low supply more than something MS recently fudged up.

Are we including the MS Surface in this because I can see more people thinking the Surface would actually offer the best of both worlds instead of worst of each, then deciding to buy an iPad, but would that really account for millions? I wouldn't think so.

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #26 of 46

So they're making money, eh?

 

Shares, prepare to dive, dive, dive!

 

/s

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post #27 of 46
Quote:
Originally Posted by SolipsismX View Post

Windows customer tend to make buying decisions like Ents.

 

Classic!

 

Now, now. Let's not be too hasty!

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post #28 of 46

Back in January we bought 6 Windows 8 Pro licenses for the office when Microsoft was doing the introductory offer at 30 something bucks. So far Windows 8 has been refreshing to use, it's quite stable and I'm quite used to the Metro homescreen even though we're not on touchscreen desktops.

post #29 of 46
Quote:
Originally Posted by 65C816 View Post

Doesn't it run under Wine/Crossover?

 

*poke poke*  Yup it does:

http://www.codeweavers.com/compatibility/browse/name/?app_id=11592

Great! Thanks for that link.

 

I will certainly be checking it out.

 

I do already have AOE II for Mac, but it sure would be nice to be able to play AOE II HD. I just have to figure out if it's worth it for me to basically pay $100 just to play one game. AOE II is that good though, so the answer might just be yes.

post #30 of 46

So the Microsoft partners and the know-nothing IT press are declaring Windows8 a failure, and the Microsoft Windows division posts results that are pretty much in line with the sales of Windows7 from last year.

 

That makes no sense, so I have to ask another layman's question:

 

When does Microsoft record a Windows license sale? Is it when the license is sold to the OEM, or when the license is activated by the end user? 

post #31 of 46

And here's a weird thought:

 

Microsoft is paid a royalty on every Android device sold. Assuming (and it is a big assumption) that Microsoft charges a different rate depending on the device, does this mean that the only Google and Microsoft know the real breakdown of the Android market?

 

http://www.livemint.com/Consumer/HEPjPSnpMIJ5T6gj4fQ0SM/FoxConn-to-pay-Microsoft-royalties-for-Android-devices.html

post #32 of 46
Is it too much to ask in a story with a headline about "Profit", to get more details on the profit breakdown instead of revenue? Or at least, enough info to know what areas generated the higher profits? I assume for Google it was mostly the 16% higher ad revenue, minus Motorola losses. For MSFT, I have no idea where their profits are generated from this article.

Also, if you are going to note analyst expectations for EPS and rev/share, please give the actuals as well. Otherwise, we are left with more questions than answers after reading the article, and have to go somewhere else to find answers. Thanks.
post #33 of 46

There is a patch for AOE2x that lets you run it in custom resolutions.  You can skip steam and probabbly run that in wine.

 

Quote:
Originally Posted by Apple ][ View Post

Great! Thanks for that link.

 

I will certainly be checking it out.

 

I do already have AOE II for Mac, but it sure would be nice to be able to play AOE II HD. I just have to figure out if it's worth it for me to basically pay $100 just to play one game. AOE II is that good though, so the answer might just be yes.

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post #34 of 46
Quote:
Originally Posted by nikon133 View Post

That is also interesting considering that next-gen consoles are (or will be shortly) announced, and everyone already seem to be in PS4/X720 overdrive hype.

It won't be called X720. The standard name will be Windows Game Console 8 Pro with Microsoft Kinect Live.

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post #35 of 46
Quote:
Originally Posted by SockRolid View Post

 

Enjoy those profits while you can, Microsoft.  Your post-PC devices and OS-es aren't even moving the needle.

 

 

Full AppleInsider story:

 http://appleinsider.com/articles/13/04/18/apples-ipad-expands-lead-in-tablet-use-at-the-expense-of-amazon-android-microsoft-surface

 

Why would you want any company to fail?  That would put thousands of people out of work.
 

post #36 of 46
Quote:
Originally Posted by ClementineOrange View Post

There is a patch for AOE2x that lets you run it in custom resolutions.  You can skip steam and probabbly run that in wine.

 

That's also interesting, I didn't know about that. I'll be checking that out too. I haven't touched AOE II in many years.

 

Thanks.

post #37 of 46
So, at Google:

- gross margin stumbled
- nothing but cost-per-click brings money
- all other projects either fail or bring no money
- Android brings money to everybody but Google
- mobile is rising, but earnings there are even thinner
- having the "biggest mobile share" with Android, yet 75% of Google's profits come from iOS

however, it's all perfect, as long as your company doesn't have fruity name...

world is actually ran by a bunch of criminals....
post #38 of 46
Quote:
Originally Posted by Apple ][ View Post

Yeah. Like when Apple reports the largest profits ever for a tech company in recorded history, some people and media with an agenda don't mention much about that, they just look for any small thing that can be spun as a negative, and boom! They've found their headline.

 

Core of the problem is the fact that stock valuation is left to so-called market. The should be very simple limitations to variation of valuation based on P/E and voila: you have few millions of vultures on the street.  

post #39 of 46
Quote:
Originally Posted by Apple ][ View Post

There's one game that I would like to buy and play (AOE II HD), and it's Windows only, but I just can't get myself to actually buy a Windows install, no way in hell. If it was $19, then maybe I might consider it.

 

Have you tried Codeweavers Crossover software?
post #40 of 46
Apparently Microsoft confirmed on their call that cheap Windows 8 tablets are coming soon. So does Apple benefit if Microsoft and Google are in a race to the bottom with tablets?
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