Microsoft’s financial results for the third quarter of 2022 hereThe company posted double-digit growth again: revenue of $49.4 billion and net income of $16.7 billion. Revenue is up 18 percent, and profit is an 8 percent jump year over year. Microsoft attributes a large part of this quarter’s growth to the cloud, with cloud and server revenue specifically up 29 percent, and Microsoft Cloud up 32 percent to $23.4 billion.
There was plenty of reason to doubt that Microsoft would still be smiling this quarter. While The PC industry began to decline From its pandemic heights, it was pointing to Chromebook sales — not Microsoft Windows devices — that were responsible for the entirety of the recent decline. Meanwhile, Xbox Just had its best sales in 11 yearsbeating easily PS5 is relatively limited in supply.
Sure enough, Microsoft says its “personal computing” businesses, including Windows and Xbox, rose 11 percent to $14.5 billion in the third quarter — and “Windows OEM revenue growth,” which should include the price manufacturers are paying To specifically put Windows 11 on laptops and desktops you buy at 11 percent. “Companies are embracing [Windows 11] faster than any previous release,” CEO Satya Nadella said on the earnings call.
Xbox revenue was up 14 percent, with a 4 percent jump in Xbox content and services revenue “driven by growth in Xbox Game Pass subscriptions and first-party titles,” for an overall 6 percent increase in gaming revenue to $3.74 billion. Nadella bragged about taking gaming market share on the earnings call as well, and Says 10 million people have now streamed games from the Microsoft cloud One of the first concrete numbers we got for the popularity of cloud gaming, since Google Stadia doesn’t share numbers and Nvidia’s GeForce Now includes numbers for anyone who has ever used the free trial. PlayStation Now had 3.2 million subscribers as of last May, but Sony recently decided to roll it out In a larger subscription service.
Nadella also said Xbox Game Pass subscribers have played 45 percent more in the past 12 months — adding up to “billions of hours” over the course of the year.
We were also excited to see if Microsoft’s large cloud and office business also remained rosy with some employees returning to physical offices, and the answer is definitely yes: Revenue growth of 17 percent in the “Productivity and Business Processes” segment this quarter, with Office 12 up percent and 11 percent in the commercial and consumer divisions, respectively. Office 365 subscribers now has 58.4 million consumers, an increase of 2 million from last quarter and an increase of 8 million since this time last year. Intelligent Cloud revenue increased 26 percent to $19.1 billion.
LinkedIn continues to experience explosive growth, up 34 percent this quarter, after growth of 37 percent, 42 percent, and 46 percent in the previous three quarters, respectively.
Microsoft’s Surface devices also seem to be doing well with a 13 percent increase in revenue after its revenue It rose astonishingly 8 percent in the last quarter (Surprise because the company previously warned of a downturn.) 2022 is Microsoft’s 10th anniversary, and we expect the company to have more than its sleeves Dull Surface Laptop SE and this is A great and great camera for teleconferencing.
Here’s one image with all the relative gains (and one loss) for individual Microsoft companies:
Here’s how much each of the companies mentioned did in the last quarter of the year in dollars (note: measured in millions):
Microsoft’s purchase of Activision Blizzardwhich is set to make Microsoft “the third-largest gaming company by revenue, after Tencent and Sony,” did not show up in those earnings — the deal is unlikely to expire until next year.
In the next quarter, Microsoft says it expects more revenue growth — despite now single-digit growth in some companies — with “approximately $110 million impact on revenue and little impact on operating expenses” from the war in Ukraine, and noting that the Chinese production shutdown It may affect Windows, Surface, and Xbox devices. Microsoft Chief Financial Officer Amy Hood said gaming revenue should in fact fall, due to “less engagement hours year on year as well as the limited supply of consoles.”