Microsoft's revenue exceeded 7 trillion yen, up 7% year-on-year & net profit increased 9%, while hardware sales such as PC and Xbox decreased 30%


by

Mike Mozart

Microsoft has announced its financial results for the third quarter of 2023 (January to March). Revenue increased by 7% year-on-year to approximately 52.9 billion dollars (approximately 7.65 trillion yen), operating income increased by 10% year-on-year to approximately 22.4 billion dollars (approximately 2.99 trillion yen), net income increased by 7% year-on-year It was about 18.3 billion dollars (about 2.44 trillion yen), an increase of 9% from the same period.

FY23 Q3 - Press Releases - Investor Relations - Microsoft
https://www.microsoft.com/en-us/investor/earnings/fy-2023-q3/press-release-webcast



Microsoft Q3 2023: Windows, devices, and Xbox down again - The Verge
https://www.theverge.com/2023/4/25/23697649/microsoft-q3-2023-earnings-revenue-profits-windows-xbox-gaming-surface



Microsoft's third quarter financial results for 2023 (2023 As Reported (GAAP)) are below. Revenue, Operating Income, and Net Income all increased compared to the same period last year (2022 As Reported (GAAP)).



Below is a table summarizing year-on-year (Percentage Change Y/Y (GAAP)) earnings for each division.

Microsoft Cloud increased by 22% year-on-year, and other cloud services such as Azure increased by 27% year-on-year. Office commercial products and cloud services increased 13% year-on-year, Office 365 increased 14% year-on-year, and Dynamic 365, a SaaS sales support system, increased 25% year-on-year. And the software-related business also showed significant growth.



On the other hand, the Windows license sales business (Windows OEM) for PC manufacturers decreased by 28% year-on-year, and the device division (Devices), which handles genuine Windows PCs, decreased by 30% year-on-year. The IT news site The Verge believes that 'Microsoft has been hit by the recession of the PC market.' It has already been reported that global PC shipments in the first quarter of 2023 have decreased by about 30% compared to the same period last year, as the demand increase due to the epidemic of the new coronavirus has actually come to an end.

The number of Mac shipments has decreased by more than 40% compared to the same period last year, and the overall PC market has greatly reduced the number of shipments, but there are signs of recovery - GIGAZINE



In addition, Xbox-related (Xbox content and services), Microsoft's gaming division, increased 3% year-on-year, but this increase was due to the strong performance of Xbox Game Pass, a game distribution subscription service. Hardware revenues such as the Xbox Series S / X decreased by 30% year-on-year. However, Microsoft explained that the decrease in game hardware revenue was ``due to an increase in the supply of game consoles in the same period last year''.

Satya Nadira, Chairman and CEO of Microsoft, said, 'The world's most advanced AI model is about to merge with the world's most ubiquitous user interface, natural language, to create a new era of computing. Through the Microsoft Cloud, we are the platform of choice for our customers to get the most value from their digital spending and innovate for this next generation of AI.'

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