April 26, 2023
Microsoft revealed financial results for fiscal third quarter that exceeded expectations, owing to excellent success in their cloud business.
The quarter’s sales climbed by 7% to $52.9 billion, above the projected $51 billion. In addition, net income increased by 9% year-on-year to $18.3 billion. Productivity and Business Processes revenue was $17.5 billion, up 11% from the previous year, led by 14% growth in Office 365 Commercial sales, 8% growth in LinkedIn revenue, and 25% growth in Dynamics 365 revenue.
Intelligent Cloud sales was $22.1 billion, a 16% increase, led by a 27% increase in Azure and other cloud services revenue. More Personal Computing revenue was $13.3 billion, a 9% fall owing to a decrease in Windows OEM sales and device revenue.
Despite declines in certain sectors, Microsoft’s cloud, office, and server businesses more than compensated. Revenue from Microsoft Cloud climbed by 22%, revenue from Office commercial products and cloud services increased by 13%, and revenue from server products and cloud services increased by 17%. Furthermore, Microsoft 365 consumer subscriptions climbed by 12% this quarter, reaching 65.4 million.
LinkedIn had “record engagement” in the third quarter, with sessions growing by 15% and revenue increasing by 8%, thanks to high demand for its consumption-based services. In comparison, Xbox content and services sales fell by 4%, while Surface revenue fell by 30%.
The sources for this piece include an article in Axios.
