Home Cloud Computing Microsoft weathers the financial storm with 12% revenue growth

Microsoft weathers the financial storm with 12% revenue growth

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Microsoft announced its fourth quarter 2022 results yesterday, posting revenue of $52 billion, up 12% year-on-year. However, the company’s net income was relatively flat at $16.7 billion, at a much more modest increase of just 2%.

In a call with analysts, Microsoft chief financial officer, Amy Hood, said unfavorable foreign exchange rate movement within the quarter negatively impacted revenue and diluted earnings per share, while extended production shutdowns in China and a deteriorating PC market had contributed to a negative Windows OEM revenue impact of more than $300 million.

The scaling down of Microsoft’s operations in Russia also led to the company recording operating expenses of $126 million related to bad debt expense, asset impairments, and severance.

Microsoft’s cloud business continued to go from strength to strength however, surpassing $25 billion for the first time in a quarter and growing at 28% year-on-year.

Segment results

Microsoft’s intelligent cloud segment—which includes Azure public cloud services, SQL Server, Windows Server, and enterprise services—was the primary beneficiary of that growth, up 20% for the quarter, at $20.9 billion.

Server products and cloud services revenue also increased 22% to $3.4 billion, driven by Azure and other cloud services, which saw revenue grow by 40%.

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