Microsoft, exceeds expectations as ‘cloud’ soars
Microsoft reported its Q1 and records nearly $50B in quarterly revenue!
Beating analyst expectations, as continued growth in Microsoft’s cloud business boosted its quarterly revenue to $49.4 billion, (up 18.2%) with profits of $16.7 billion, (up 8%) beating Wall Street’s expectations with earnings per share of $2.22, as reported by Microsoft
Main highlights from the company’s results for the three months ended March 31
- Microsoft Cloud revenue reached $23.4 billion, up 32% year-over-year.
- Growth in the company’s Office business led to a 17% increase in revenue in Microsoft’s Productivity and Business Processes Division, to $15.8 billion.
- An increase in the Windows Commercial business helped to fuel an 11% increase in revenue in the company’s More Personal Computing division, to $15.5 billion.
- Revenue from search and news advertising topped $2.9 billion, up 22% year-over-year.
- LinkedIn revenue was $3.4 billion, up 34% for the quarter.
- Devices revenue, including the Microsoft Surface hardware business, was up 10% to a total of more than $1.7 billion for the quarter.
Adjusting for the impact of foreign currency exchange rates and the acquisition of Nuance Communications, analysts were expecting the company to post about $2.15 in earnings per share, (compared with the $2.22 that Microsoft reported)
The results come amid a busy week for tech earnings, with Apple, Alphabet and Amazon among the companies reporting their numbers later this week.
Microsoft Q1 Chart
| Three Months Ended March 31, | ||||||
| ($ in millions, except per share amounts) | Revenue | Operating Income | Net Income | Diluted Earnings per Share | ||
| 2021 As Reported (GAAP) | $41,706 | $17,048 | $15,457 | $2.03 | ||
| Net income tax benefit related to India Supreme Court decision on withholding taxes | – | – | (620) | (0.08) | ||
| 2021 As Adjusted (non-GAAP) | $41,706 | $17,048 | $14,837 | $1.95 | ||
| 2022 As Reported (GAAP) | $49,360 | $20,364 | $16,728 | $2.22 | ||
| Percentage Change Y/Y (GAAP) | 18% | 19% | 8% | 9% | ||
| Percentage Change Y/Y (non-GAAP) | 18% | 19% | 13% | 14% | ||
| Percentage Change Y/Y (non-GAAP) Constant Currency | 21% | 23% | 17% | 18% | ||
