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Thursday, April 18, 2013

The Microsoft Online Money Pit

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Thursday, April 18, 2013
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The Microsoft Online Money Pit

Microsoft's money pit is not nearly as nasty as it used to be!

This quarter it reported a $262 million loss. For most companies this would be terrifying. For Microsoft, it's good news. It means Microsoft's online division is getting much better.

The last time Microsoft's online operation looked like this was five years ago.

Microsoft's head of investor relations noted in a call with us that revenue was up 18% on a year-over-year basis, with online advertising growing 22%.

We asked when this loss would be zero. He dodged the question saying Microsoft will continue to be responsible, but it might have to make investments in cloud and service infrastructure.

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