{"id":5077,"date":"2022-07-26T20:35:03","date_gmt":"2022-07-26T20:35:03","guid":{"rendered":"https:\/\/enews.sotout.com\/microsoft-q4-2022-earnings-windows-xbox-and-cloud-all-strong\/"},"modified":"2022-07-26T20:35:03","modified_gmt":"2022-07-26T20:35:03","slug":"microsoft-q4-2022-earnings-windows-xbox-and-cloud-all-strong","status":"publish","type":"post","link":"https:\/\/farratanews.online\/microsoft-q4-2022-earnings-windows-xbox-and-cloud-all-strong\/","title":{"rendered":"Microsoft Q4 2022 earnings: Windows, Xbox, and cloud all strong"},"content":{"rendered":"

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Microsoft posted the fourth quarter of its 2022 financial results today<\/a>, reporting revenue of $51.9 billion and a net income of $16.7 billion. Revenue is up 12 percent, and net income has increased by just 2 percent. But while revenue was up, Microsoft saw some of its core businesses, including Windows and Xbox, start to slip.<\/p>\n

The PC market had been thriving throughout the pandemic, but PC shipments experienced a big decline in the recent quarter \u2014 nearly 13 percent according to Gartner. It\u2019s the sharpest decline in nine years, thanks to geopolitical tensions, inflation, and continued supply chain challenges.<\/p>\n

Microsoft\u2019s Windows OEM revenue, the price PC manufactures pay Microsoft to put Windows on machines, fell 2 percent in Q4, driven by what Microsoft described as \u201cproduction shutdowns and a deteriorating PC market.\u201d<\/p>\n

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Photo by Becca Farsace \/ The Verge<\/cite><\/p>\n

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Surface revenue has increased 10 percent for Q4, despite no big Surface launches during the quarter. Microsoft refreshed its compact Surface Laptop Go<\/a> in June with 11th Gen Intel processor, but we\u2019ll be waiting until the fall until we see a bigger refresh to the Surface lineup. 2022 marks 10 years of Surface, so expect the usual fall event for new devices.<\/p>\n

All eyes are now on Intel\u2019s planned price increases of its CPUs and chips<\/a>, and how they might affect the PC market. Intel is planning price rises for its flagship CPUs and a wide range of other chips later this year, including Wi-Fi and other connectivity chips.<\/p>\n

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Photo by Vjeran Pavic \/ The Verge<\/cite><\/p>\n

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Over on the Xbox side, hardware revenue is fell 11 percent, alongside a 6 percent dip in Xbox content and services revenue. Microsoft attributed the declines to \u201clower engagement hours and monetization\u201d across both first- and third-party titles. Last quarter Microsoft revealed 10 million people<\/a> had used the company\u2019s Xbox Cloud Gaming service, and that\u2019s bound to have grown even higher thanks to Fortnite <\/em>now being the only game<\/a> that\u2019s free to stream on the service.<\/p>\n

Microsoft hasn\u2019t provided an update on Xbox Game Pass subscribers this quarter, after the service grew to 25 million in January<\/a> following the holiday releases of Age of Empires IV, Forza Horizon 5, <\/em>and Halo Infinite. <\/em><\/p>\n

Microsoft isn\u2019t discussing its planned $68.7 billion acquisition of Activision Blizzard<\/a> any further today. The purchase is expected to close in fiscal year 2023, and it will see Microsoft publish franchises like Warcraft<\/em>, Diablo<\/em>, Overwatch<\/em>, Call of Duty,<\/em> and Candy Crush.<\/em><\/p>\n

Outside of gaming and Windows, Microsoft\u2019s Office, cloud, and server products continue to growth at impressive rates. Office commercial products and cloud services revenue is up 9 percent this quarter, and Office consumer is up 9 year over year. Microsoft 365 Consumer subscriptions are now at 59.7 million, as Microsoft continues to tempt consumers into Office subscriptions and services like Microsoft Teams.<\/p>\n

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Microsoft\u2019s cloud services continue to grow.<\/em><\/figcaption>Image: Microsoft<\/cite><\/p>\n

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Microsoft\u2019s server products and cloud services revenue also jumped s percent year over year, thanks as always to Azure and other cloud services revenue growing by 22 percent.<\/p>\n

LinkedIn continues to grow at Microsoft, thanks to advertising demand. LinkedIn revenue was up 26 percent this quarter, which Microsoft attributes to its Talent Solutions and Marketing Solutions businesses. Search and news advertising revenue is also up by 15 percent year over year.<\/p>\n

These latest results arrive after Microsoft was forced to lower its guidance for this quarter in June, and the company cited unfavorable foreign exchange rates. The dollar is strong against a number of currencies right now, amid geopolitical tensions and inflation. Microsoft is affected when it converts foreign currency into dollars.<\/p>\n

Microsoft will now hold an earnings call with investors at 5:30PM ET \/ 3:30PM PT, and we\u2019ll update this article with any relevant comments.<\/p>\n<\/div>\n

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[ad_1] Microsoft posted the fourth quarter of its 2022 financial results today, reporting revenue of $51.9 billion and a net income of $16.7 billion. Revenue is up 12 percent, and net income has increased by just 2 percent. But while revenue was up, Microsoft saw some of its core businesses, including Windows and Xbox, start […]<\/p>\n","protected":false},"author":1,"featured_media":5079,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/5077"}],"collection":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/comments?post=5077"}],"version-history":[{"count":0,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/posts\/5077\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media\/5079"}],"wp:attachment":[{"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/media?parent=5077"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/categories?post=5077"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/farratanews.online\/wp-json\/wp\/v2\/tags?post=5077"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}