Microsoft’s results suffered from the economic situation in the last quarter, but the good resistance of its cloud business (remote computing) reassured investors. The computer giant on Tuesday posted revenue of $52 billion for its record fiscal fourth quarter, up 12 percent year over year. Its net profit was 16.7 billion, which is a very small increase (+2%).
In its press release, the American group states that unfavorable exchange rates deprive it of $595 million in revenue. Record inflation, supply chain issues, factory closures in China due to Covid and the war in Ukraine are all factors weighing on the company’s accounts.
Thus, its personal computer activity shows $14.4 billion over the counter, just 2% more than the same period last year. As for video games, Xbox content and services were down 6% year-over-year.
Results from MicrosoftBelow Wall Street expectations»
Microsoft resultsare below Wall Street expectations, but the underlying figures for cloud and orders are strongDan Eaves of Wedbush Securities echoed in a note. The Redmont Group title (Northwest) was up 3.87% in electronic trading after the close of trading. Microsoft generated $25 billion in cloud revenue, up 28%, according to CFO Amy Hood, quoted in the statement.
Revenue for Microsoft’s remote computing platform, Azure, grew 40% year-over-year, or 46% in constant currency, compared to the previous two quarters. “The DNA of Microsoft’s growth is the cloudDan Ives assured. “And Azure’s growth looks set to continue in the coming months despite the economic headwinds“.
With a 21% market share, it is the second largest cloud service provider in the world, behind Amazon’s AWS (33%) and ahead of Google Cloud (8%), according to the consultancy. Canalys is looking at the first quarter of 2022. Microsoft, like many other tech companies, signaled last quarter that the pace of hiring would slow, particularly for teams looking after its Office IT suite or Windows work.
Source: Le Figaro
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