10 Illuminating Points From Microsoft's Q1 Earnings


Consumer Office 365 Declined, But Microsoft Says That's Not A Big Deal

Microsoft is "making meaningful progress" in its consumer business and a big part of that is Office 365 Home Premium, Hood said. While Office sales to consumers dropped 5 percent during the quarter, Microsoft actually forecast this last quarter as an effect of moving from on premise to cloud subscription revenue.

"Consumer Office licensing revenue declined this quarter. The financial impact of the shift to Office 365 Home Premium was generally in line with our expectations," said Chris Suh, Microsoft's general manager of investor relations, according to Seeking Alpha's transcript of the call.

Microsoft now has 2 million Office 365 Home Premium customers after adding about 1 million customers in the past 6 months. It costs $99.99 per year and lets customers install it on up to 5 PCs.