Microsoft has announce (Opens in a new tab) Strong financial results for the first quarter of 2023 thanks in large part to its success Cloud Services, despite losses on its leading carrier for Windows PCs.
The company’s Microsoft Cloud division generated $25.7 billion in revenue in the quarter, up 24% from the same period last year.
The business now accounts for more than half of the company’s total revenue, and helped it offset losses seen in the Windows OEM division – where the operating system is installed on machines made by other manufacturers – which fell by 15%.
global concerns
Microsoft CEO Satya Nadella blamed downtown overall on the PC market, and indicated in an earnings call that the company was paying less attention to its traditional operating system model and instead focused on cloud computing.
Nadella added that the company wanted to help customers “do more with less” and that it would “manage [its] cost structure in a disciplined manner.”
Microsoft also revealed that its total revenue rose 11% from last year, to $50.1 billion, beating expectations of $49.7 billion. Earnings were down 14% from the first quarter of last year, although that included a $3.3 billion tax benefit as a result of moving intangible assets — which include intangible items like patents, processes and technical data — from its Puerto Rican subsidiary.
Elsewhere, Azure and Linkedin properties, two other Microsoft-owned properties, saw revenue increases of 35% and 17%, respectively. In the Department of Productivity and Business Operations – which includes the famous productivity Office group – revenue increased by 9%.
Looking ahead, Microsoft CFO Amy Hood stated that the downward trend is expected to continue on various fronts due to global economic conditions, noting that higher energy bills are costing the company an additional $250 million each quarter for this fiscal year.
On a more positive note to the company, Nadella referred to the developer service GitHub, which was Purchased by Microsoft in 2017It is now worth $1 billion, up from $200 million since its acquisition.
The platform has also seen a growth in user bases for its various services: Xbox CloudGaming It reached 20 million users, doubling from 10 million at the beginning of the year, and the number of Microsoft security services users increased 33% year-over-year, representing one of the company’s biggest areas of expansion.
