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Strong performance from its cloud divisions saw Microsoft deliver yet another successful quarter despite struggles for its Windows operations.
The company’s $51.9 billion revenue for the quarter leading up to June 30 2022 was up 12% compared with the same period last year, comprising an operating income of $20.5 billion (up 8%) and a net income of $16.7 billion (up 2%). This saw share prices increase by $2.23, slightly missing Wall Street’s $2.29 expectation.
Microsoft executive vice president and chief financial officer Amy Hood revealed that commercial bookings grew 25% and Microsoft Cloud revenue was $25 billion - up 28% year over year.
Big year for Microsoft, despite global events
In a press release, Microsoft added how “evolving macroeconomic conditions” and “other unforeseen circumstances” were to blame for some of the company’s struggles, including “Unfavorable foreign exchange rate movement within the quarter,” difficulties in the Chinese production sector, and the ongoing political difficulties as a result of the Russia-Ukraine war.
“Bad debt expense, asset impairments, and severance” saw the tech giant spend $126 million in operations as it scaled down services in Russia.
The company’s cloud business continues to perform strongly, with Azure contributing generously to the sector’s 40% growth. This follows a $981 million increase in investments into Azure and Nuance, up 20%, which demonstrates the company’s commitment to expanding its cloud-based operations. This follows a 2% decrease in revenue for the company’s operating system, Windows.
LinkedIn, which Microsoft acquired in 2016 for $26.2 billion, saw revenue increase by 26% year-on-year, a sum that equals $768 million.
Microsoft expects a FY23 Q1 revenue of between $40.25 billion and $50.25 billion, down from the previous quarter and indeed below Wall Street’s predictions.
Microsoft expects a FY23 Q1 revenue of between $40.25 billion and $50.25 billion, down from the previous quarter and indeed below Wall Street’s predictions.
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