Windows and Xbox down, Office and Cloud up as Microsoft clocks $52.9 billion revenue – Times of India

Microsoft has announced the results for the quarter that ended on March 31. In a statement released by the tech giant, the results of this quarter have also been compared o the corresponding period of the last fiscal year. The company earned a revenue of $52.9 billion which increased by 7% since YoY.
The company is betting big on its AI models and cloud servers to increase the numbers in the coming days. Microsoft CEO Satya Nadella said, “The world’s most advanced AI models are coming together with the world’s most universal user interface – natural language – to create a new era of computing. Across the Microsoft Cloud, we are the platform of choice to help customers get the most value out of their digital spend and innovate for this next generation of AI.”
Meanwhile, the company’s CFO Amy Hood claimed, “Focused execution by our sales teams and partners in this dynamic environment resulted in Microsoft Cloud revenue of $28.5 billion, up 22% (up 25% in constant currency) year-over-year,”
How different business divisions performed
Microsoft’s revenue in productivity and business processes Q3 FY23 was $17.5 billion which increased by 11% from last year. Office commercial products and cloud services revenue increased by 13%. These results were driven by Office 365 Commercial revenue which grew by 14%.
Additionally, office consumer products and cloud services revenue increased by 1%. The company also confirmed that Microsoft 365 consumer subscribers have grown to 65.4 million.
LinkedIn revenue has increased by 8% while dynamic products and cloud services revenue increased by 17%. This performance was driven by Dynamics 365 revenue which grew by 25%. Also, revenue from AI cloud models was $22.1 billion which increased by 16%. The revenue of server products and cloud services increased by 17% which was driven by Azure and other cloud services revenue growing by 27%.
However, there were some areas where the revenue dipped for the company. The revenue in more personal computing was $13.3 billion which decreased by 9% as Windows OEM and devices revenue decreased by 28% and 30%, respectively.
On the other hand, the revenue from Windows commercial products and cloud services grew by 14% while search and news advertising revenue (excluding traffic acquisition costs) also went up by 10%. On the gaming front, Xbox content and services revenue also increased by 3%.
Microsoft also confirmed that it has returned $9.7 billion to shareholders in the form of share repurchases and dividends in the third quarter of fiscal year 2023.