Microsoft revenue grows 7% to $52.9 bn in Jan-March

Microsoft has reported revenue of $52.9 billion (+7 percent), operating income of $22.4 billion (+10 percent) and net income of $18.3 billion (+9 percent) for the quarter ended March 31, 2023.
Satya Nadella and Microsoft leadershipRedmond, Washington-based Microsoft has generated quarterly revenue of $17.5 billion (+11 percent) from Office Productivity Business; $22.1 billion (+16 percent) from Intelligent Cloud and $13.3 billion (–9 percent) from Windows / Personal Computing business.

Microsoft said Productivity and Business Processes revenue was driven by 13 percent growth in Office Commercial products and cloud services revenue and 14 percent increase in Office 365 Commercial business.

Microsoft said Office Consumer products and cloud services revenue increased 1 percent. Microsoft’s 365 Consumer subscribers grew to 65.4 million during January-March quarter.

LinkedIn revenue increased 8 percent.

Dynamics products and cloud services revenue increased 17 percent, driven by Dynamics 365 revenue growth of 25 percent.

Revenue growth in Intelligent Cloud was driven by 17 percent increase in server products and cloud services driven by Azure and other cloud services revenue growth of 27 percent.

Decline in revenue in Personal Computing business was due to 28 percent drop in Windows OEM revenue and 30 percent decline in devices revenue.

“The bottom line is that despite all the concerns that the sky is falling in big tech, the truth is companies still see value in cloud computing and there’s still a huge percentage of workloads that can be moved to the cloud,” said Bob O’Donnell, an analyst for TECHnalysis Research.

Microsoft said growth at its cloud business Azure was 27 percent in the latest reported quarter.

The bulk of Microsoft sales come from selling software and cloud computing services to customers. The company has grabbed headlines this year with its partnership with ChatGPT creator OpenAI and sprucing up the Bing search engine with artificial intelligence technology.

Microsoft CEO Satya Nadella told investors on a conference call the company had more than 2,500 Azure-OpenAI service customers and said AI was integrated into a wide array of products.

Bing, long an also-ran to search engine Google, has 100 million daily users and has seen downloads jump since the addition of AI features, Nadella said.

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