Microsoft Corporation (NASDAQ:MSFT) Q2 2015 Earnings Conference Call - Final Transcript

Jan 26, 2015 • 05:30 pm ET


Microsoft Corporation (NASDAQ:MSFT) Q2 2015 Earnings Conference Call - Final Transcript


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Satya Nadella

all phones and tablets for mobile productivity. Further we've released completely new scenarios. This includes Office Sway for visualizing and sharing ideas, Delve to help search and discover content, Office 365 Groups to make it easier to collaborate, Office 365 Video for secure media streaming for businesses.

Finally we continue to invest in enterprise value by integrating MDM and Enterprise Mobility Suite into Office 365. New encryption technologies, compliance certification and new e-discovery capabilities in exchange.

In Dynamic CRM Online, we added 53 markets this quarter, bringing us to 130 markets around the world. We're bringing together CRM with Cortana, Yammer, Power BI and Skype to add unique value to customers. We're expanding our capabilities in the Cloud through five new acquisitions. Last week we announced an agreement to purchase revolution analytics, the leading provider of statistical computing and predictive analytics, which will enable our customers to unlock big data in size.

We bought HockeyApp, a

Satya Nadella

leading mobile app testing and development service to enhance Azure services for mobile developers. Our acquisition of (inaudible) accelerates our ability to give customers unique security capabilities by tapping into behavioral intelligence on identity and access spanning on-premise and the cloud.

We're bringing on new capabilities in machine learning as applied to e-Discovery and other enterprise compliance processes with the acquisition of Equivio and we also welcomed Acompli, a provider of innovative mobile email applications for IOS and Android. The common theme across all these acquisitions is advanced data analytics and machine learning driven capabilities that improve with more customer adoption and usage of the cloud.

We're also making progress in our consumer cloud services. Office 365 home and personal revenue grew nearly 150% year-over-year as we added 2.1 million net new subscribers since last quarter. Bing U.S. search share continues to grow, as does search revenue with 23% growth this quarter. I will talk about our progress in Xbox live later in my comments. Now let's turn to Windows.

To start, the overall Windows Ecosystem is driving more innovation. Over the holiday season at SCES, our partner showcased a diverse lineup of Windows devices, including more premium device choices than ever. Last spring we made a strategic decision to introduce new Windows pricing programs to drive unit growth in opening price point PCs as well as tablets and this quarter year-over-year growth.

Also businesses continue to value Windows. We're seeing healthy demand for Windows Pro even though we faced challenging prior year comparables in Q2 as well as in the second half of the year, following the Windows XP end of support related PC refresh.

Now let's talk about Windows 10. Last week was an important milestone on our path to release Windows 10 and ushering an era of more personal computing. The heritage of Windows was about enabling one single device, the PC.

With Windows 10, we're building a device platform for the mobile-first, cloud-first world. It's a world where the mobility of a person's experience is paramount, requiring a platform that