Microsofts quarterly revenue rose 20 driven by Windows Office and
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Microsoft’s quarterly revenue rose 20%, driven by Windows, Office, and cloud services

Microsoft released Financial results for the second quarter of fiscal 2022. During the period, the company’s revenue was $51.7 billion and net income was $18.8 billion, up 20% and 21%, respectively. The company achieved similar earnings growth rates thanks to active sales of office packages, Windows operating systems and cloud services.

Source: microsoft

Source: microsoft

Due to the pandemic, PC sales increased to 340 million units in 2021. This marks the second quarter of sales for Windows 11, with OEM collaboration revenue up 25% in the second quarter of fiscal 2022 compared to the same period last year.

In a meeting with investors, CEO Satya Nadella said the company is seeing a “structural shift in demand for PCs” as both the number of home PCs and the time spent on them have increased. In total, there are 1.4 billion active devices running Windows 10 and Windows 11 every month.

Microsoft predicted that Surface sales could suffer during the period, but that segment, on the contrary, posted an 8% increase after the company unveiled the Surface Pro 8 and Surface Laptop Studio in October. Microsoft itself assumes that the Surface laptop models have become the segment driver.

Strong demand for the Xbox Series X/S consoles, launched over a year ago, saw sales of both devices and the company’s overall gaming segment soar – after the latter hit a record $3.6 billion in the fiscal first quarter, growth was recorded 8% in the second . Sales of content and services for the Xbox grew 10% and the actual “hardware” grew 4%.

Earlier this month, Microsoft reported that Xbox Game Pass subscribers had grown to 25 million with the recent release of Halo Infinite and Forza Horizon 5, which has been played by tens of millions of players, and a number of iconic Bethesda titles have increased Game Pass added 2021. .

With its $68.7 billion acquisition of Activision Blizzard, set to close in fiscal 2023, Microsoft will also become a game publisher for popular franchises like Warcraft, Diablo, Overwatch, and Call of Duty, and its own within the company form a gaming division called Microsoft Gaming.

Source: microsoft

Source: microsoft

The office suite developed successfully in the quarter under review. Revenue from branded commercial products and cloud services increased 14% and customer base grew 15% year over year. Microsoft 365 Consumer subscribers grew to 56.4 million, a 20% increase year over year.

Microsoft’s server products and cloud services revenue rose 29%, driven primarily by the company’s Azure and other cloud platforms, which posted a 46% increase in revenue.

LinkedIn saw a 37% increase in revenue driven by strong demand for ads. The commitment of platform users has also grown significantly. Search and news services revenue grew 32% due to higher ad spend.

During the earnings call, Nadella touched on the subject of the Metaverse. According to the company boss, Microsoft wants to catch the “next wave of the Internet”. In his opinion, the next “wave” will be a more open world where users can build their own metaverses, whether we’re talking about organizations, game developers, or anyone else.

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About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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