All things Microsoft $MSFT

Microsoft delivered greater revenue for the quarter, owing to growth in its cloud-software business, with all three of its key business sectors reporting higher-than-expected results. Plus, the business expected continued strength in the December quarter.

Microsoft announced sales of $45.3 billion in its fiscal first quarter, up 22% from the previous quarter and above the Wall Street analyst forecast of $44 billion. Non-GAAP earnings per share were $2.27, 20 cents more than the Street forecast of $2.07.

The corporation earned $2.71 per share, including a $3.1 billion gain from a one-time tax advantage, according to generally accepted accounting rules, or GAAP.

These are just the numbers! What prompted this? Thoughts?

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Many might wonder about the numbers behind the math…

Here’s the breakdown for the geeks

For the Productivity Business Processes – Office and other applications, the revenue was $15billion up by 22%! More than the investors expected! 18% growth in Office commercial products and a staggering 42% surge at LinkedIn and 31% growth in Microsoft Dynamics. Indeed SaaS.

Well, we are all aware of the cloud services that the tech giants offer and here’s Azure for Microsoft that posted revenue of $17billion, up 31%, Azure revenue was up by 50%. Many companies are moving to the cloud for their operations and Cloud services are on the rise. It seems to do a better job out there. Notably, Azure faces competition from AWS and Google Cloud.

But wait there’s more to the numbers Personal Computing segment which includes Windows, Surface, Xbox to name a few posted revenue of $13.3billion, again above what investors expected. Xbox sales were up by 166% for this quarter.

Well, there’s more to keep the investors happy! That’s the CFO of Microsoft projected strong numbers for the December quarter as well.

Does that prompt you to invest more??

Microsoft is losing employees to Meta to build MetaVerse

  • Microsoft Corp.'s augmented-reality team has lost around 100 people in the past year, many of them to Meta Platforms Inc., said former software company employees and online job profiles, as the battle heats up for workers with skills to build the metaverse.

  • Competitors have been snapping up people with experience developing Microsoft’s HoloLens augmented-reality headsets, sometimes offering to double their salaries, said former Microsoft employees.

  • The Microsoft augmented-reality group employs around 1,500 people. On digging up, the LinkedIn profiles of more than 70 former employees on the HoloLens team show they have left Microsoft in the past year. More than 40 joined Meta. The departed staffers include some longtime leaders of the group.

Even Apple is losing its folks to Meta

  • Apple Inc. is also losing employees to Meta, according to former Microsoft employees who have moved to Meta and LinkedIn profiles of former Apple employees.

Reason and Metaverse Listings:

  • Most tech titans are now planning to release their smart glasses, regular-size glasses that include some AR capabilities. Hence, engineers with experience with AR and VR see their profiles and salaries soar.
    According to the job site Indeed*, The share of job listings that mentioned the metaverse in December was more than ten times the level a year earlier.

  • Meta’s Oculus dominates that headset market with around 75% share in 2021. There were 9.4 million VR headsets sold last year, a number that could rise to 13.6 million by the end of this year, according to IDC. Microsoft was one of the first movers in augmented reality.

  • Meta is also working on AR glasses, prompting its hiring binge, said the former Microsoft employees.

  • Because Microsoft has been ahead of the competition on AR, its employees make desirable targets for headhunting, said analysts.

Microsoft is a first mover in the field

  • Microsoft has invested billions of dollars into developing the technology, but the HoloLens headsets, which cost $3,500 each, have sold little relative to popular consumer electronics.

  • Some senior leaders at Microsoft even considered reducing funding of the HoloLens program before the team won a big military contract, said people familiar with their thinking.

  • Last March, Microsoft won a U.S. Army contract to develop ways to use AR headsets to help soldiers see through smoke and navigate battlefields. The agreement could be worth more than $20 billion over the next ten years, said Microsoft.

Hey, here’s what I wrote:

Microsoft to Buy Activision Blizzard - What’s Hot :fire: - Vested Community

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Microsoft’s Earnings Call Highlights

The numbers:

  • Revenue was $51.7 billion and increased 20%

  • Operating income was $22.2 billion and increased 24%

  • Net income was $18.8 billion and increased 21%

  • Diluted earnings per share was $2.48 and increased 22%

Microsoft’s stock dropped over 6%, just days after reporting strong Q2’22 numbers. During the results call, however, the mood changed dramatically, and Microsft finished up over 4%, a 10% gain!

Microsoft’s projection for its cloud business piqued the interest of investors. Here are a few statements from the call that one should take note of:

Next Q: Azure Reaccelerating -

  • “We anticipate sales of between $18.75 billion and $19 billion for Intelligent Cloud…
    We estimate revenue growth in Azure to be up sequentially in constant currency, led by our Azure consumption business, which has seen considerable growth from a low base.”

PCs and Windows are making a comeback:

  • "Now, on to Windows. We’ve seen a structural shift in PC demand. More than ever, people are turning to PCs to exercise their agency and unleash their creativity, whether it’s meeting in virtual reality or for remote work, writing code or collaborating in documents, live streaming video or playing games, or graphic design and engineering design.

On Activision

  • “With the announcement of our proposed acquisition of Activision Blizzard last week, we’re investing to make it easier for people to play great games wherever, whenever and however they want and also shape what comes next for gaming as platforms as the metaverse develop.”

On LinkedIn

  • We also saw strong growth in LinkedIn Sales Solutions, which surpassed $1 billion in revenue over the past 12 months for the first time.
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Insightful results to skim through!. In the computer world, I discovered that there is a burgeoning “PC renaissance.” I guess will Apple report anything along those lines?

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Let’s see what Apple says. With their M1 chips, sales should be on fire!