Microsoft Corporation has published its results for the quarter that ended on December 31, 2022 where it reported a 2% rise in revenue reaching $52.7 billion. The operating income stood at $20.4 billion GAAP and decreased by 8%, while non-GAAP came in at 21.6 billion with only a 3% dip since the corresponding period last fiscal year. The net income was $16.4 million GAAP and $17.4 million for non‐GAAP which showed a decrease of 12% and 7% respectively. Diluted earnings per share as reported by Microsoft was $2.20 GAAP and $2.32 non-GAAP.
“The next major wave of computing is being born, as the Microsoft Cloud turns the world’s most advanced AI models into a new computing platform,” said Satya Nadella, chairman and chief executive officer of Microsoft. “We are committed to helping our customers use our platforms and tools to do more with less today and innovate for the future in the new era of AI.”
Microsoft cloud revenue increases by 22%
Microsoft Cloud revenue was up by 22% reaching $27.1 billion. Revenue from Intelligent Cloud reached $21.5 billion increasing by 18%. Driven by Azure and other cloud services, the revenue from server products and cloud services increased by 20%.
Microsoft’s business process and productivity segment has seen a growth of 7%, reaching a total revenue of $17.0 billion. This is primarily driven by an increase in Office Commercial products and cloud services, where Office 365 saw a 11% rise. Although Office Consumer products decreased by 2%, Microsoft 365 Consumer subscriptions still grew to 63.2 million. LinkedIn was another area that saw great success with its revenue surging by 10%. Dynamics products and cloud services also increased by 13%, with Dynamics 365 revenue growing up by 21%.
Revenue from personal computing decreases
Microsoft’s revenue in More Personal Computing experienced a significant dip, with an overall decrease of 19%. This is seen to be mainly attributed to the decrease in Windows OEM revenue by 39%, as well as the decreases in Xbox content and services revenue, which was 12%, and Devices revenue, which decreased by 39%. Search and news advertising revenues excluding traffic acquisition costs increased by 10%.
Despite this monetary setback, Microsoft demonstrated its commitment to shareholders by allocating $9.7 billion to them, which is still 11% less than what was given in the second quarter of the fiscal year 2022.
Microsoft products and enhancements
As one of the world’s leading technology companies, Microsoft invests heavily in research and development to deliver innovative products and services to customers. Every quarter, the company releases hundreds of new products and services or improves existing ones. These impressive investments make it possible for customers to enjoy greater productivity and security, as well as access valuable cloud-based solutions. Microsoft is constantly working hard to ensure that its current and potential customers benefit from cutting-edge technology so that they can stay competitive in today’s digital landscape.
This quarter too Microsoft introduced some leading features and enhancements in Teams, Microsoft 365 Consumer and Commercial applications, Azure, GitHub, and more which improved productivity and collaboration.
Microsoft was also in the news following its partnership with OpenAI and its announcements where it talked about integrating ChatGPT from OpenAI in its Office applications and search tool Bing.
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