Microsoft 2Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

solid revenue and EPS growth

“we grew revenue 10% exceeding the high-end of our guidance range. Moving on to earnings per share. Before the impact of the acquisition and the noted items Chris highlighted earlier EPS grew 12% to $0.66. ”

Redefined our core for the mobile first cloud first world

“We accelerated our commercial cloud business to a $4.4 billion annual run rate. And perhaps more importantly we made bold and disciplined decisions to define our core as the productivity and a platform company for the mobile-first and cloud-first world.”

Mobility goes beyond devices

“Mobility for us goes beyond just devices, while we are certainly focused on building great phones and tablets, we think of mobility more expansively.”

Two platforms at the core of the enterprise: cloud OS and Device OS

” We will be relentless in our focus on our core digital work and life experiences and the two platforms that support it, the cloud operating system and the device operating system and hardware.”

Pillar 1: Meld work and personal life solutions

“Everything we do starts with digital work and life experiences to delight dual users; these are users who use technology both at work and in their personal life. This is how we reinvent productivity. Last year, we started to take steps in this direction now OneDrive and OneDrive for business are one team. Outlook and Exchange are one team, Skype and Lync are one team all focused on those dual user scenarios.”

Our solutions are going to be on all devices

“We are clear that our experiences are going to be available on all devices. We have a specific goal for multiple Microsoft applications to be available on every home screen. ”

Bing has 19% search share

“I’m pleased to see the progress with Bing now more than 19% U.S. query share and strong RPS growth.”

Pillar 2: Cloud OS

“Our Cloud OS represents the fastest growing opportunity for Microsoft. Quarter-after-quarter, we drive growth and customer adoption. Our server products benefit from our public cloud. The fact that we use our servers to run our cloud make our server software, the most capable enabling others to build and operate their clouds.”

Saw enterprise customers recommit to windows

“We start with a focus on business customers in FY14, we saw these customers recommit to Windows.”

Pillar 3 hardware

“Let’s transition to our device OS and hardware, the third component of our core. In everything we do with our Windows OS and first party devices, we will line up our digital work and life experiences. We are approaching the Windows OS business with a bold challenging mindset and pushing both the product and business model forward.”

We are not in the hardware business for hardware sake

“Our approach to first party hardware going forward is clear. At times, we will develop new categories like we did with Surface and we will responsibly make the market for Windows phone. However, we are not in the hardware for hardware sake, and the first party device portfolio will be aligned to our strategic direction as the productivity and platform company.”

pays lip service to xbox at the very end of his comments…this business is an orphan IMO

“I want to make a few comments on Xbox. It’s important for us to have a core that’s thriving. It’s equally important to play smart bold bets in other areas…We will invest in our core console gaming in Xbox live with a view towards the broader PC and mobile opportunity.”

Acceleration in cloud revenue driven by a variety of things

” It was across Office 365, Azure and even CRM online. I think some of the important dynamics that you could point to particularly in Office 365; I really think over the course of the year, we saw an acceleration in moving the product down the market into increasing what we would call the mid-market and even small business at a pace.”