Microsoft first quarter earnings beat revenue and earnings estimates; Cloud revenue climbs

Microsoft reported its financial performance for the first quarter of its fiscal year, beating analyst expectations with increases in revenue, operating income, and diluted earnings per share.

"Our devices and services transformation is progressing and we are launching a wide range of compelling products and experiences this fall for both business and consumers," said Steve Ballmer, chief executive officer at Microsoft. "Our new commercial services will help us continue to outgrow the enterprise market, and we are seeing lots of consumer excitement for Xbox One, Surface 2 and Surface Pro 2, and the full spectrum of Windows 8.1 and Windows Phone devices."

As part of its transformation to a devices and services company, Microsoft now reports its Dynamics business under its Commercial segments - Commercial Licensing (for CAL-based licenses) and Commercial Other for Dynamics CRM Online, Azure, and other services.  Commercial revenue overall was up 10 percent from the same period last year, with operating income up 19%. 

Consumer cloud revenue, which presumably includes Dynamics CRM Online, grew 103% compared to last year. 

In the final quarter of fiscal year 2013, Microsoft missed estimates. Under the old reporting structure, the old Microsoft Business Division saw revenue grow in Q4 2013 by 14% and 3% for the full year. Microsoft Dynamics revenue grew 13% in the 2013 fourth quarter.

Source: Microsoft's FY14 Q1 earnings call slides