Microsoft has reported revenue of $50.1 billion (+11 percent), operating income of $21.5 billion (+6 percent) and net income of $17.6 billion (–14 percent) for the quarter ended September 30, 2022.
Revenue growth in the first quarter was Microsoft’s lowest in five years.
Microsoft generated revenue of $16.5 billion (+9 percent) from Productivity and Business Processes business in July-September quarter.
Office Commercial products and cloud services revenue increased 7 percent driven by Office 365 Commercial revenue growth of 11 percent.
Office Consumer products and cloud services revenue increased 7 percent and Microsoft 365 Consumer subscribers grew to 61.3 million.
LinkedIn revenue increased 17 percent.
Dynamics products and cloud services revenue increased 15 percent driven by Dynamics 365 revenue growth of 24 percent.
Microsoft is expecting revenue of $16.6-16.9 billion from Productivity and Business Processes business in October-December quarter.
Microsoft generated revenue of $20.3 billion (+20 percent) from Intelligent Cloud business.
Server products and cloud services revenue increased 22 percent driven by Azure and other cloud services revenue growth of 35 percent.
Microsoft is expecting revenue of $21.25-21.55 billion from Intelligent Cloud business during the October-December quarter.
Microsoft generated revenue of $13.3 billion in More Personal Computing business.
Windows OEM revenue decreased 15 percent.
Windows Commercial products and cloud services revenue increased 8 percent.
Xbox content and services revenue decreased 3 percent.
Devices revenue increased 2 percent.
Microsoft is expecting revenue of $14.5-14.9 billion in More Personal Computing business during the October-December quarter.
Growth of Microsoft’s cloud business, called Azure, has dropped to 35 percent in the July-September quarter.
There will be a drop in the growth of Microsoft’s cloud business in the October-December quarter.
The company said it expects the Intelligent Cloud business to pull in revenue of $21.25 billion to $21.55 billion in the October-December quarter.
“We expect Azure revenue growth to be sequentially lower by five points on a constant currency basis,” Chief Financial Officer Amy Hood told analysts on a conference call. That would be a growth of 37 percent on a constant currency basis, and much lower taking into account foreign exchange rates.
The maker of Windows has seen demand slide for its computer software as the spike in inflation forces businesses and consumers to pull back on spending.
Current-quarter revenue from the personal computing unit was projected between $14.5 billion and $14.9 billion, below estimates of $16.96 billion.
“PC market was worse than we expected in Q1,” Brett Iversen, head of Microsoft’s investor relations, told Reuters. “We continued to see that deteriorate throughout the quarter, which impacted our Windows OEM business.”
Windows OEM business, which includes the operating software Microsoft sells to PC makers, dropped 15 percent year-on-year.
