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{"id":4595,"date":"2022-04-27T15:08:04","date_gmt":"2022-04-27T15:08:04","guid":{"rendered":"https:\/\/scienceandnerds.com\/2022\/04\/27\/microsoft-rides-the-cloud-office-and-windows-to-sustained-growth-in-q3-2022\/"},"modified":"2022-04-27T15:08:05","modified_gmt":"2022-04-27T15:08:05","slug":"microsoft-rides-the-cloud-office-and-windows-to-sustained-growth-in-q3-2022","status":"publish","type":"post","link":"https:\/\/scienceandnerds.com\/2022\/04\/27\/microsoft-rides-the-cloud-office-and-windows-to-sustained-growth-in-q3-2022\/","title":{"rendered":"Microsoft rides the cloud, Office and Windows to sustained growth in Q3 2022"},"content":{"rendered":"

Source: https:\/\/www.theverge.com\/2022\/4\/26\/23043334\/microsoft-q3-2022-earnings-revenue-cloud-windows-xbox-gaming-surface<\/a>
\n
<\/br><\/code><\/p>\n

\n

Microsoft\u2019s third quarter 2022 financial results are here<\/a>, and the company\u2019s posting double-digit growth yet again: revenue of $49.4 billion and net income of $16.7 billion. Revenue is up 18 percent, and the profit represents an 8 percent jump year over year. Microsoft is crediting a chunk of this quarter\u2019s growth to the cloud, with server and cloud services revenue up 29 percent specifically, and Microsoft Cloud up 32 percent to $23.4 billion.<\/p>\n

There was plenty of reason to suspect Microsoft would still sport a smile this quarter. While the PC industry has started to decline<\/a> from its pandemic highs, it was flagging Chromebook sales \u2014 not Microsoft Windows machines \u2014 that were responsible for the entirety of the recent dip. Meanwhile, the Xbox just had its best sales in 11 years<\/a>, handily beating the relatively supply-constrained PS5<\/a>. <\/p>\n

Sure enough, Microsoft says its \u201cmore personal computing\u201d business, including Windows and Xbox, was up 11 percent to $14.5 billion in Q3 \u2014 and \u201cWindows OEM revenue growth,\u201d which should include the price manufacturers pay to put Windows 11 on the laptops and desktops you buy, was up 11 percent specifically. \u201cEnterprises are adopting [Windows 11] at a higher pace than any previous release,\u201d said CEO Satya Nadella on the earnings call.<\/p>\n

Xbox hardware revenue was up 14 percent, with a 4 percent jump for Xbox content and services revenue \u201cdriven by growth in Xbox Game Pass subscriptions and first-party titles,\u201d for an overall 6 percent boost for gaming revenue to $3.74 billion. Nadella boasted about taking gaming market share on the earnings call as well, and says 10 million people have now streamed games from Microsoft\u2019s cloud<\/a> \u2014 one of the first concrete numbers we\u2019ve had for cloud gaming\u2019s popularity, since Google Stadia doesn\u2019t share numbers and Nvidia\u2019s GeForce Now numbers include anyone who\u2019s ever used its free trial. PlayStation Now had 3.2 million subscribers as of last May, but Sony recently decided to roll it into a larger subscription service<\/a>.<\/p>\n

Xbox Game Pass subscribers also played 45 percent more over the past twelve months, said Nadella \u2014 adding up to \u201cbillions of hours\u201d across the year. <\/p>\n

We were also eager to see if Microsoft\u2019s big Office and cloud businesses also stayed rosy as some employees return to physical offices, and the answer is definitely yes: 17 percent revenue growth in \u201cProductivity and Business Processes\u201d segment this quarter, with Office up 12 percent and 11 percent in the commercial and consumer divisions, respectively. Office 365 is now at 58.4 million consumer subscribers, up 2 million over last quarter and up 8 million since this time last year. \u201cIntelligent Cloud\u201d revenue was up 26 percent overall to $19.1 billion. <\/p>\n

And LinkedIn is still experiencing dramatic growth, up 34 percent this quarter, after growth of 37 percent, 42 percent, and 46 percent the three previous quarters, respectively.<\/p>\n

Microsoft\u2019s Surface devices are also seemingly doing well at a 13 percent revenue increase after its revenue surprisingly increased 8 percent last quarter<\/a> (surprising because the company previously warned of a dip). 2022 is the 10th anniversary of the Microsoft Surface, and we expect the company has more up its sleeves than the lackluster Surface Laptop SE<\/a> and this fascinating and fancy teleconferencing camera<\/a>.<\/p>\n

Here\u2019s one image with all the relative gains (and one loss) for Microsoft\u2019s individual businesses:<\/p>\n

\n <\/p>\n

<\/p>\n\"\"<\/p>\n

<\/source><\/picture>\n

<\/span><\/p>\n

<\/span><\/p>\n<\/figure>\n

And here\u2019s how much each of the named businesses did this past quarter in terms of dollars (note: measured in millions):<\/p>\n

\n <\/p>\n

<\/p>\n\"\"<\/p>\n

<\/source><\/picture>\n

<\/span><\/p>\n

<\/span><\/p>\n<\/figure>\n

Microsoft\u2019s purchase of Activision Blizzard<\/a>, which is set to make Microsoft the \u201cthird-largest gaming company by revenue, behind Tencent and Sony,\u201d didn\u2019t feature in these earnings \u2014 the deal isn\u2019t likely to close until next year.<\/p>\n

Next quarter, Microsoft says to expect more revenue growth \u2014 though now single-digit growth in some businesses \u2014 with \u201croughly a $110 million impact on revenue and minimal impact on operating expenses\u201d from the war in Ukraine, and a note that Chinese production shutdowns might impact Windows, Surface and Xbox hardware. Gaming revenue should actually decline, said Microsoft CFO Amy Hood, because of \u201clower engagement hours year over year as well as constrained console supply.\u201d<\/p>\n<\/div>\n


<\/br><\/code><\/p>\n

Source: https:\/\/www.theverge.com\/2022\/4\/26\/23043334\/microsoft-q3-2022-earnings-revenue-cloud-windows-xbox-gaming-surface<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: Microsoft\u2019s third quarter 2022 financial results are here, and the company\u2019s posting double-digit growth yet again: revenue of $49.4 billion and net income of $16.7 billion. Revenue is up 18 percent, and the profit represents an 8 percent jump year over year. Microsoft is crediting a chunk of this quarter\u2019s growth to the cloud, […]<\/p>\n","protected":false},"author":1,"featured_media":4596,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[59,8],"tags":[11],"class_list":["post-4595","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-microsoft","category-technology","tag-microsoft"],"yoast_head":"\nMicrosoft rides the cloud, Office and Windows to sustained growth in Q3 2022 - Science and Nerds<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/scienceandnerds.com\/2022\/04\/27\/microsoft-rides-the-cloud-office-and-windows-to-sustained-growth-in-q3-2022\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Microsoft rides the cloud, Office and Windows to sustained growth in Q3 2022 - Science and Nerds\" \/>\n<meta property=\"og:description\" content=\"Source: Microsoft\u2019s third quarter 2022 financial results are here, and the company\u2019s posting double-digit growth yet again: revenue of $49.4 billion and net income of $16.7 billion. Revenue is up 18 percent, and the profit represents an 8 percent jump year over year. 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