Microsoft FY23 Q1 Earnings

https://www.microsoft.com/en-us/investor/earnings/FY-2023-Q1/press-release-webcast

by kaycebasques • 4 years ago

60 36 4 years ago

andsoitis• 4 years ago

This quarter Microsoft Cloud revenue was $25.7 billion, up 24% (up 31% in constant currency) year-over-year.

Compared to Google, if I read their Financials correctly, their Cloud revenue was just $6.8 billion for the quarter. https://abc.xyz/investor/static/pdf/2022Q3_alphabet_earnings...

keepquestioning• 4 years ago

Holy crap.

TrainedMonkey• 4 years ago

Looks like Microsoft > Google in Cloud wars. For comparison Google Cloud revenue is just $6B, source: https://news.ycombinator.com/item?id=33338258

Amazon is probably dominating both of them combined...

jiggawatts2• 4 years ago

Maybe not any more: https://www.statista.com/statistics/250520/forecast-of-amazo...

Looks like Azure + Microsoft 365 has overtaken AWS.

The question is whether Azure alone has overtaken AWS…

rubiquity• 4 years ago

Neither of them are straight forward with what cloud revenue actually means. If I recall correctly, Microsoft includes SQL Server in cloud revenue. The only people on the planet that can tell you Azure's actual revenue work at Microsoft and the only people on the planet that can tell you GCP's actual revenue work at Google.

smachiz3• 4 years ago

From the presentation: "Microsoft Cloud includes Azure and other cloud services, Office 365 Commercial, the commercial portion of LinkedIn, Dynamics 365, and other cloud properties."

jsnell• 4 years ago

This quarter Microsoft Cloud revenue was $25.7 billion, up 24% (up 31% in constant currency) year-over-year.

Literally all those numbers are incorrect. This is what the actual press release says:

Revenue in Intelligent Cloud was $20.3 billion

Not $25.7B.

increased 20%

Not 24%.

(up 26% in constant currency)

Not 31%.

smachiz3• 4 years ago

That was a direct quote from the release:

“This quarter Microsoft Cloud revenue was $25.7 billion, up 24% (up 31% in constant currency) year-over-year. We continue to see healthy demand across our commercial businesses including another quarter of solid bookings as we deliver compelling value for customers,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

From the presentation: "Microsoft Cloud includes Azure and other cloud services, Office 365 Commercial, the commercial portion of LinkedIn, Dynamics 365, and other cloud properties."

No need to be hostile (and right and wrong simultaneously).

nojito• 4 years ago

Intelligent Cloud is a subset of MS's overall cloud offering (Microsoft Cloud).

chirau3• 4 years ago

Cloud services now bring in more money than Productivity and Business suites. Interesting.

propogandist2• 4 years ago

creative accounting tricks will allow anything to be classified as "Cloud" revenue.

trelane2• 4 years ago

So you're saying that Cloud revenue is quite nebulous?

johannes1234321• 4 years ago

You only get a good discount on Microsoft Dynamics if you also get some cloud credits ... oh and while getting it: do you want the LinkedIn integration to Dynamics? LinkedIn is accounted for under cloud, too.

They can shift the revenue accountingwise wherever they want it. (Just have to make sure they internally track it better, to see which products actually bring the money ...)

chirau3• 4 years ago

LinkedIn and Dynamics products and cloud services are all under Productivity and Business Processes though.

GartzenDeHaes• 4 years ago

Microsoft bundles on-prem enterprise office and exchange licenses into O365, so I think those numbers are misleading.

jeffhwang• 4 years ago

Yes I think this is correct. For years, MS has made apples-to-apples comparisons with AWS challenging by bundling in cloud app revenue into the overall Azure cloud business. Makes sense bc Office365 SaaS was so much larger than IAAS and PAAS.

chirau3• 4 years ago

O365 and on-prem enterprise suites are under Productivity and Business Processes

colinmhayes• 4 years ago

As others have said microsoft leverages their considerable relationships and other products to pump their cloud numbers. My friend who worked for an electric generator told me that microsoft offered to switch the electricity source of their data centers to their company if they switched their cloud to azure. That's on top of the O365 deal and of course massive credits.

trdtaylor1• 4 years ago

Notice how the stock cratered after hours? Growth is slowing on cloud revenue. It's lower than expectations. Cloud is a big reason for the expanded PE ratio on both Amazon and Microsoft. Amazon reports in 2 days, already it's taking a hit. A bit of the assumption is cloud spending would not be as impacted as the Microsoft one is showing. Tech companies in general will likely show red tomorrow, as the markets digest this news.

sbelskie• 4 years ago

I’m sure they will be red but MSFT has PE of ~25 which is pretty boring for a “growth” tech stock. AMZN has a PE of >100 and is one of the few remaining outliers among big tech companies. The rest are much closer though not exactly equal to boring blue chip PE ratios.

jl2718• 4 years ago

But cloud is still growing while the stock drops. This tells me that the cloud investment thesis is incorrect, and investors actually care more about PC Windows and Xbox. This makes more sense because cloud compute is destined to become a low-margin commodity, while Windows and Xbox are protected brands.

Microsoft FY23 Q1 Earnings

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