Yammer Revenue Climbs 259%

Microsoft is very pleased with its enterprise social networking acquisition.

Microsoft has revealed that its Yammer social enterprise software revenue climbed 259 percent year-over-year. Microsoft bought the smaller firm last summer for $1.2 billion.

Computerworld's Juan Carlos Perez reported, "With the backing of its new parent company, Yammer more than tripled its revenue year on year in the quarter that ended in March. Sales of Yammer's cloud-based enterprise social networking (ESN) software shot up 259 percent in Microsoft's third fiscal quarter, compared with the same quarter in 2012, when Yammer was still an independent company, Microsoft said on Thursday."

Janet I. Tu with The Seattle Times noted, "Microsoft did not disclose the actual revenue dollar amount. With the 312 new customers, Yammer now counts more than 200,000 corporations as customers. Overall, Yammer has 7 million individual registered users, up from 5 million at the time of its acquisition."

The Next Web's Alex Wilhelm cautioned, "Yammer integration across Microsoft enterprise and corporate products, particularly SharePoint remains nascent, it should be noted. A final point: Microsoft is exceptionally fond of announcing when a new business segment reaches a run rate of $1 billion per year. That breaks down to $250 million per quarter. As it hasn’t said as much about Yammer, we can assume that it hasn’t reached that size. That gives you a better comprehension of its size."

TechCrunch's Alex Williams added, "Microsoft today announced that it will fold about 100 sales people from Yammer into the Office 365 team this summer. Microsoft also is making a point to focus on identity management and other issues as part of its road to full integration."




Tags: Microsoft, software, Office, revenue, Yammer, enterprise social networking


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