Microsoft earned revenue of $20.40bn and net profit of $5.66bn in the third quarter 2013.
Revenue was 0.4% lower than last year but better than analyst estimates of $20.39bn. The net income was 6.5% less than the same quarter in 2013.
The results reflect the company's shift in its focus from personal computers to mobile and cloud, under the aegis of its new CEO Satya Nadella.
Nadella said that the quarter's results demonstrate the opportunities they see in a mobile-first, cloud-first world.
"We are making good progress in our consumer services like Bing and Office 365 Home, and our commercial customers continue to embrace our cloud solutions. Both position us well for long-term growth," Nadella said.
Bing US search share grew to 18.6% and search advertising revenue grew 38%. Subscribers for Office 365 Home, the office program for personal users, increased by one million in the quarter to a total of 4.4 million.
Nadella said that the company is focused on "executing rapidly and delivering bold innovative products that people love to use".
Revenue from Microsoft's cloud computing platform Azure grew over 150%. The company is adding over 40 new features to the platform to attract cloud application developers.
In addition, Microsoft sold two million Xbox console units in the quarter.
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