Microsoft made a $2 billion profit on its Bing ads this quarter, with revenue from its Bing search engine rising 20% to $5.9 billion, according to its fourth-quarter earnings call.
The company also posted a record quarterly revenue for advertising on mobile, which grew 29% to nearly $5 billion.
Bing’s revenue is growing faster than its search revenue, which is a key driver of the company’s overall operating profit.
Microsoft also made an $854 million charge to fund the acquisition of Nokia’s Devices and Services division, bringing its revenue for the year to $9 billion.
Microsoft reported net revenue of $7.8 billion, up 12% year-over-year to $17.2 billion.
That’s still a big chunk of the $11.5 billion it’s reported every quarter, but Microsoft’s revenue growth comes largely from advertising.
“It’s a great example of how we’re working to align our advertising strategy with our business,” said Kevin Turner, Microsoft’s senior vice president of digital advertising.
Microsoft’s advertising revenue grew to $7 billion from $5 in Q4.
Its ad revenue from the Internet of Things and Xbox Live services grew at more than double the rate of the rest of the industry.
“We believe that as the ad market evolves, our ads will continue to be the most valuable revenue streams for the company,” Turner added.
The Windows 10 advertising deal has been in place for nearly a year, with Microsoft making the acquisition in March of Nokia for $764 million.
Microsoft has also invested heavily in digital advertising, including using the Bing search tool to target ads to consumers and businesses, and creating its own ad-buying app for Windows phones.