Microsoft’s Q3 2022 financial results we annouced last night, and once again they have annouced double-digit growth. Here’s the headlines.
- Revenue $49.4 Billion (up 18%)
- Net Income $16.7 Billion
- Profit increase of 8% year on year
Much of this quarter’s growth is related to the cloud, with server and cloud services revenue up 29% and Microsoft Cloud up 32% to $23.4 billion. Here’s a summary of the results.
More Personal Computing
Up 11% to $14.5Billion was Microsoft’s “more personal computing” division which includes Windows and Xbox.
Up 11% also was “Windows OEM revenue growth,”. Satya Nadella said that “Companies are adopting Windows 11 at a faster pace than any previous release.”
Xbox had its best sales in 11 years (up 14%), easily beating the relatively limited PS5 in terms of supply.
Cloud, Office 365, Business Processes
Office 365 revenue was up 17% in commercial and 12% in consumer with them now boasting 58.4 million consumer subscribers, up 2 million from last quarter and 8 million from this time last year.
Intelligent Cloud (Azure) revenue increased 46% in the quarter, and Microsoft said that the number of Azure deals worth at least $100million in the quarter more than doubled
LinkedIn continues to see huge growth, up 34% this quarter, which follows growth of 37%, 42% and 46% respectively in the previous three quarters.
Security was up 45% and was a huge call out, with revenue growth from security products and services across of Microsoft’s three segments.
Devices / Surface
Microsoft’s Surface devices also has a good quarter, up 13% increase in revenue despite the ongoing chip shortage. 2022 is Surface’s 10th anniversary, and I expect some big announcements this year to mark the date later this year.
Aquisition and Other Stuff
Microsoft announced a plan during this quarter to acquire video-game publisher Activision Blizzard for $68.7 billion, the largest transaction in Microsoft’s 47-year history.
Microsoft also closed its Nuance Communications acquisition and laid out a strategy for expanding in health care, an industry Nuance focuses on.
Full report and annoucement
You can read the full report and analysis here.