Let’s take a look at Microsoft’s financial results for the first quarter of FY23.
- Overall revenue was $50.1 billion, an increase of 11%.
- Operating income was $21.5 billion, up 6%…
- but Net income was down 14% to $17.6 billion
- Operating expenses were up 15% to $13.2 billion.
Looking at the individual divisions we see:
Productivity & Business Processes
Overall revenue up 9% to $16.5 billion and within that:
- Office 365 Commercial revenue up 11%
- LinkedIn revenue up 17%
- Dynamics 365 revenue up 24%
Overall revenue was up 20% to $20.3 billion and within that:
- Azure growth of 35%
Still a good increase but noticeably slowing down from previous quarters. Microsoft note that cloud margins are down primarily due to increased energy bills.
More Personal Computing
Overall revenue decreased slightly to $13.3 billion and within that:
- Windows OEM revenue decreased 15%
- Devices revenue increased 2%
- Satya Nadella was quick to point out the hybrid/multi-vendor approaches possible with Azure – talking about SAP & Oracle in the first couple of paragraphs.
- PowerApps has almost 15 million monthly active users (MAU), a 50% year on year increase, and Power Automate has reached 7 million MAU.
- Nadella also talked about Teams and how chat has overtaken email as where the average user spends their time. He also said:
“Teams is becoming a ubiquitous platform for business process.”
and shared that the number of enterprise users running 3rd party/custom apps has increased 60% year over year.
- Microsoft Viva already has 20 million MAU – just the start of things for this line-up I’m sure.
- Amy Hood spoke about strong E5 momentum being driven by security, compliance, and voice products and an increase in Average Revenue Per User (ARPU) too.
- Nadella also stated:
“we are going to optimize for long-term customer loyalty by proactively helping them optimize [Azure] spend“
This follows on from what he said last quarter (and also matches what AWS recently said) that helping customers waste less will ultimately help them spend more.
See all the info, slides, and transcripts here.