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Microsoft shares its latest quarterly earnings in a new report

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Published onJuly 27, 2022

published onJuly 27, 2022

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Key notes

We know that many of you are wondering what kind of numbers Microsoft makes of all its products and, as always, we’re here to shed some light on the matter.

As you are probably used to by now, the tech colossus haspostedstrong figures for the last quarter of the 2022 fiscal year as it looks forward to starting the 2023 fiscal year.

Just so there is absolutely no confusion, keep in mind that the company’s 2022 fiscal year ended on June 30th, 2022.

Microsoft reports $51.9 billion in revenue this last quarter

So, since we’re talking money, let’s discuss the fact that, in its latest quarter, Microsoft’s revenue was $51.9 billion, which is a 12% increase (16% Constant Currency) compared to the same period in the previous fiscal year.

The operating income entry had only a single-digit growth of 8% (14% CC), which amounts to a staggering $20.5 billion.

As far as net income goes, it increased by 2% (7% CC) to $16.7 billion and diluted earnings per share were $2.23, up by 3% (8% CC).

Keep in mind that, while all of these are positive figures, the Redmond-based tech company has also highlighted some unfavorable global and macroeconomic conditions that negatively impacted its results.

These are totally unforeseen circumstances that the tech company did not bring up in its forward-looking statements published in April 2022 whatsoever.

Thus, the Redmond giant has announced that unfavorable foreign exchange rates negatively affected revenue and diluted earnings per share by $595 million and $0.04, respectively.

As a result of an overall reduction in advertising spending, LinkedIn took a massive impact, with Search and news advertising revenue decreasing by $100 million.

Microsoft also mentions extended production shutdowns in China which, with the deterioration in the PC market in June, led to a decline of $300 million in Windows OEM revenue.

Microsoft is known to have also scaled down its operations in Russia, which means that the tech giant posted operating expenses of $126 million in lieu of bad debts, asset impairments, and severance packages.

Even outside of Russia, the realignment of its business groups across the globe resulted in employee severance payments of $113 million.

Moving on, Microsoft also posted the quarterly Productivity and Business Processes revenue, which stood strong at $16.6 billion, going up in percentage by 13%.

The company explains that this was powered by significant growth in revenue for Office Commercial products (9%), Office 365 Commercial (15%), Office Consumer products (9%), LinkedIn (26%), Dynamics products (19%), and Dynamics 365 (31%).

Another interesting fact about growth, since we’re on the subject, is that Microsoft 365 subscribers also grew to 59.7 million people, which is a lot.

Intelligent Cloud revenue was at $20.9 billion, which constitutes a giant growth of 20%, due to Server products growth (22%) and Azure (40%).

As for revenue in the More Personal Computing category, while overall revenue grew by 2% and stood at $14.4 billion, Windows OEM revenue declined by 2% and Xbox content and services were down by 6%.

Also, note that Windows Commercial products grew by 6% and Surface revenue was up by 10%, as reported by Microsoft.

Drawing the line for the fiscal year 2022, revenue was at $198.3 billion (18% growth), operating income was $83.4 billion (19%), net income was $72.7 billion GAAP (19%), $69.4 billion non-GAAP (15%), diluted earnings per share was $9.65 GAAP (20%), and $9.21 non-GAAP (16%).

Going into the new fiscal year, Microsoft has set some target objectives that it plans to stick to, as follows:

What are your thoughts on Microsoft’s latest revenue report? Share your opinions with us in the comments section below.

With KB5043178 to Release Preview Channel, Microsoft advises Windows 11 users to plug in when the battery is low#

Copilot in Outlook will generate personalized themes for you to customize the app#

Microsoft will raise the price of its 365 Suite to include AI capabilities#

Death Stranding Director’s Cut is now Xbox X|S at a huge discount#

Outlook will let users create custom account icons so they can tell their accounts apart easier#

Microsoft shares its latest quarterly earnings in a new report#

Microsoft reports $51.9 billion in revenue this last quarter#