Microsoft FY23 Financial Results

June 31st saw the end of another financial year for Microsoft and, despite there being many 1000’s of layoffs, the final numbers were very positive indeed for Redmond – yet again.

Full year FY23 results

• Overall revenue = $211.9 billion, up 7%
• Operating Income = $88.5 billion, up 6%

For specific product areas:

• Dynamics 365 surpassed $5 billion
• Microsoft Cloud hit $111 billion
• Azure Virtual Desktop & Windows 365 combined for $1 billion

Q4 FY23 results

• Revenue = $56.2 billion, up 8%
• Operating Income = $24.3 billion, up 18%

Then looking at the individual business units we see:

Productivity & Business Processes

Revenue was up 10% to $18.3 billion and within that:

• Office 365 Commercial up 15%
• Dynamics 365 up 26%
• LinkedIn up 5%

Intelligent Cloud

Revenue was up 15% to $24 billion and this included Azure (and other cloud services) growth of 26%. Nadella mentioned that optimisation is continuing within Azure and there were a record number of contracts over $10 million as well as the highest annualized value for long-term Azure contracts.

Microsoft Cloud

This isn’t a Business Unit but rather a grouping of various cloud products including:

• Azure
• O365 Commerical
• Dynamics 365
• Parts of LinkedIn
• “Other cloud properties”

and this hit $30.3 billion for the quarter (up 21%) and $111 billion for the year. Satya Nadella mentioned that Azure was over 50% of this for the first time…which puts a number of just over $55 billion on annual sales for Azure. That means (according to this list) if Azure became its own company, it would be approx. the 64th biggest company in the US, surpassing Novartis, Cisco, Nike, Oracle, and Coca-Cola among others.

Earnings call comments

recognition from Copilot will be weighted towards the 2nd half of this financial year, which suggests M365 Copilot won’t be generally available until later in 2023 – perhaps October?

• Azure Arc now has 18,000 customers, a 150% Year on Year (YoY) increase
• Microsoft Fabric has over 8,000 trial customers
• Viva has over 35 million Monthly Active Users (MAU)
• EMS has over 256 million users (up 11%)
• Teams Premium has over 600,000 seats
• Teams Phone PSTN users increased 45% YoY to 17 million
• Making it the “market leader in cloud calling” according to Nadella
• Teams Revenue more than doubled YoY
• Microsoft 365 saw a record number of $10 million+ contracts
• They saw “particular strength” in Office 365 upsell at renewal

Things are all going in the right direction and there’s plenty of room for growth in areas like Azure Arc, Fabric, Windows 365, and Teams Premium.

See more at the Microsoft site here.