Sales Of Microsoft Corporation (MSFT) Yammer Software Increases 259%

Posted May 10, 2013

Microsoft Corporation (NASDAQ:MSFT) has reported that sales of Yammer’s cloud-based enterprise social networking service has increased 259% in the company’s third fiscal quarter that ended in March, compared to the same quarter in 2012.  Back then, Yammer was still an independent company proving the value Microsoft added to the service.  Microsoft did not disclose the actual revenues in dollars.  Yammer added around 312 new customers for the quarter.

Microsoft Office senior director Jared Spataro said that the company is pleased with the acquisition.  “There are always questions after an acquisition, like, ‘How is it going?’ There’s a worry about cultures clashing, and about products and strategies coming together,” said Spataro. “When we did the acquisition, we talked a lot about how it would accelerate Yammer’s momentum. So this is a great data point to demonstrate how well things are going in general.”

Microsoft calculated the revenue spike by counting the sales of standalone Yammer licenses.  The company left out revenue that came in front the Enterprise Agreement volume licensing deals.  Microsoft dropped Yammer’s Business edition following the acquisition and dropped the price of the Enterprise edition from $15 to $3 per user per month.  This means that Microsoft generated less revenue per license than Yammer did in the prior year’s quarter, but they were able to benefit from an increase in volume.

Microsoft is expecting that Yammer will get another sales boost this summer when the social network’s sales team is merged with Microsoft’s global salesforce.  This boosts the number of sales reps encouraging customers to buy a license to the service from around 100 to thousands of people worldwide.

Back in February, we reported that Yammer surpassed 7 million users and the company quadrupled their sales for Q4.  Microsoft acquired Yammer for $1.2 billion in June 2012.  The acquisition was mainly to boost Microsoft’s cloud-based enterprise services.  Yammer and SharePoint are being tightly integrated.  Soon there will be a single sign-on with the inclusion of Yammer in Office 365 and Microsoft Dynamics, according to PCWorld.