Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizens Wu Yanzu in South China for the delivery of clues! Sina Science and Technology News Beijing time in the early morning of October 26, Microsoft today released the company's financial results for the first quarter of fiscal year 2023. According to the report, Microsoft's revenue in the first quarter was $50.122 billion, up 11% from $45.317 billion in the same period last year, up 16% year-on-year, excluding exchange rate changes, and net profit was $17.556 billion, down 14% from $20.505 billion in the same period last year. Diluted earnings per share were $2.35, down 13% from $2.71 in the same period last year, and 7% year-on-year excluding exchange rate changes.

Microsoft's adjusted earnings per share and revenue beat Wall Street analysts' expectations in the first quarter, but the outlook for second-quarter revenue failed to meet analysts' expectations, causing its shares to fall nearly 3 per cent in after-hours trading.

Main achievements:

Microsoft's net profit for the quarter ended September 30 was $17.556 billion, down 14 per cent from $20.505 billion in the same period last year, and 8 per cent year-on-year, excluding currency changes.

Microsoft's diluted earnings per share in the first quarter were $2.35, down 13% from $2.71 a year earlier, and down 7% year-on-year, excluding currency changes, beating analysts' expectations. On average, 32 analysts had expected Microsoft to earn $2.30 a share in the first quarter, according to data provided by Yahoo Finance.

Microsoft's first-quarter revenue was $50.122 billion, up 11% from $45.317 billion in the same period last year, and 16% year-on-year, excluding currency changes, which also beat analysts' expectations. On average, 30 analysts had expected Microsoft's first-quarter revenue to reach $49.61 billion, according to Yahoo Finance.

Microsoft's total revenue cost in the first quarter was $15.452 billion, compared with $13.646 billion in the same period last year. Of this total, Microsoft's product revenue costs were $4.302 billion in the first quarter, compared with $3.792 billion in the same period last year, and services and other revenue costs were $11.15 billion, compared with $9.854 billion in the same period last year.

Microsoft's first-quarter gross profit was $34.67 billion, compared with $31.671 billion in the same period last year.

Microsoft spent $6.628 billion on research and development in the first quarter, compared with $5.599 billion in the same period last year; $5.126 billion in sales and marketing, compared with $4.547 billion in the same period last year; and $1.398 billion in general and administrative expenses. compared with $1.287 billion in the same period last year.

Microsoft's first-quarter operating profit was $21.518 billion, up 6 per cent from $20.238 billion in the same period last year, and up 15 per cent year-on-year, excluding currency changes.

Performance of each department:

In the first quarter of fiscal 2023, Microsoft's productivity and business process division generated revenue of $16.465 billion, up 9% from $15.039 billion in the same period last year, and 15% year-on-year growth excluding exchange rate changes; operating profit was $8.323 billion, compared with $7.581 billion in the same period last year.

Within this department:

-revenue from Office commercial products and cloud services increased by 7% year-on-year, excluding exchange rate changes, accounting for 13% year-on-year growth, driven by 11% year-on-year revenue growth from Office 365 commercial products (17% year-on-year growth excluding exchange rate changes)

-revenue from Office consumer products and cloud services grew 7% year-on-year, excluding exchange rate changes, up 11% year-on-year; the number of subscribers to Microsoft's 365 consumer products increased to 61.3 million

-LinkedIn's revenue grew by 17% year-on-year, excluding exchange rate changes, by 21%.

-Dynamics product revenue increased 15% year-on-year, excluding exchange rate changes, 22% year-on-year growth, driven by 24% revenue growth for Dynamics 365 products (32% year-on-year growth excluding exchange rate changes).

Microsoft's smart cloud division had revenue of $20.325 billion in the first quarter, up% from $16.912 billion in the same period last year, excluding currency changes, and operating profit of $8.978 billion, compared with $7.681 billion in the same period last year.

Within this department:

-revenue from server products and cloud services increased by 22% year-on-year, 28% year-on-year excluding exchange rate changes, which was driven by 35% revenue growth in Azure and other cloud services businesses (42% year-on-year growth excluding exchange rate changes).

Revenue from Microsoft's more personal computing business was $13.332 billion in the first quarter, compared with $13.366 billion in the same period last year, up% from a year earlier, excluding currency changes, and operating profit was $4.217 billion, compared with $4.976 billion in the same period last year.

Within this department:

-Window OEM (original equipment manufacturer) revenue fell 15% year-on-year

-Windows revenue from commercial products and cloud services increased by 8% year-on-year, excluding exchange rate changes, by 15%

-revenue from Xbox content and services fell 3% year-on-year, with 1% year-on-year growth excluding exchange rate changes

-search and news advertising revenue (excluding traffic acquisition costs) increased by 16% year-on-year, excluding exchange rate changes, by 21% year-on-year

-equipment revenue increased by 2% year-on-year, with 8% year-on-year growth excluding exchange rate changes.

Return of capital:

In the first quarter, Microsoft returned $9.7 billion in cash to shareholders through share buybacks and dividends, down 11% from the same period last year.

Performance outlook:

After the release of the results, Microsoft provided the performance outlook data in a subsequent earnings call.

Microsoft expects revenues of between $52.35 billion and $53.35 billion in the second quarter of fiscal 2023, representing a 2 per cent year-on-year increase in the median range, a performance outlook that falls short of Wall Street analysts' expectations.

On average, 30 analysts expect Microsoft's second-quarter revenue to reach $56.05 billion, according to data provided by Yahoo Finance.

Changes in stock prices:

Microsoft shares rose $3.41, or 1.38 per cent, to $250.66 in regular trading. Microsoft shares fell $7.20, or 2.87 per cent, to $243.46 in after-hours trading as of 05:49 est on Tuesday (05:49 Beijing time on Wednesday). In the past 52 weeks, Microsoft's highest price is $349.67 and the lowest price is $219.13.

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