Microsoft Earnings: Everything is Great! Just Don’t Look at Bing’s Income Loss
Revenues are up! Income is up! Growth is up! Even Bing is up! Something that is carefully worded in Microsoft’s announcement…
Next I’ll move on to the Online Services Division, which grew 8%. The Online advertising component of the division grew 13%, primarily driven by our search business, which again outperformed the market leader. Yesterday, Bing reached a significant milestone with the Yahoo! partnership. Through diligent efforts on behalf of both companies, Bing is now powering Yahoo!’s algorithmic and paid search results in the US and Canada.
Yay! Everything looks soooo good. Let’s just report on that good news and be done, shall we?
Or…shall we not take this at face value and do a little digging? How about we take a look at the actual income for Bing and Microsoft’s other “online services?”
Err….listen, I’m a self-confessed lousy numbers guy, but does that look like a deeper loss to anyone else? Negative $560 million is a larger number than negative $477 million, right?
Still, let’s give Microsoft the benefit of the doubt. Its Yahoo deal only just went live, so let’s see what happens next quarter. Just don’t hold your breath too much on that one, K?