Microsoft avoids the drums of war and avoids a conflict in its financial accounts. Despite the fact that the results of its fourth quarter of the fiscal year -or what is the same, the months that go from April to June 2022- were somewhat lower than expected, the technology giant is in luck as it has managed to increase its income.
The good data from Microsoft
The feat acquires greater relevance when we find ourselves in a complicated social, political and economic moment with the invasion and subsequent war between Russia and Ukraine and rising inflation, among other conjunctural issues.. Microsoft earned 12% more in the fourth quarter, or what is the same 51,900 million dollars. Net income also grew, just over 2% to 16.7 billion. While earnings per share rose 3% to $2.23.
And more good news. Office business and personal sales grew 9%, while Dynamics 365 revenue increased 31% helping drive cloud revenue across the board up 19%; Windows OEM revenue increased 2%, sales of Microsoft’s Surface PCs fell by 10% and Bing increased 18%.
Microsoft’s bad data
But of course, not all were good data. Microsoft also lost $300 million from the slowdown in PC production in China. 126 million for bad debt expenses, asset impairments and indemnities caused by the resignation of its Russian business. And a drop of around 100 million in advertising, mainly LinkedIn, Google search results and news. Or a decline in Xbox revenue by 6%.
“We see a real opportunity to help all customers in all industries use digital technology to overcome today’s challenges and come out stronger (…) No company is better positioned than Microsoft to help organizations meet their digital imperative, so they can do more with less,” said Satya Nadella, president and chief executive officer of Microsoft.
For now, a year 2022 of earnings
Annually, not just quarterly, Microsoft is experiencing a good 2022 with revenues of more than 198 billion dollars, 18% more than in 2021. With net revenues of 72.7 billion, 19% more; and earnings per share of $9.65, which is 20% higher than in 2021.