Microsoft Corporation has published the results of financial and economic activity based on the results of the third quarter of 2023. The downturn in the PC market had a significant impact on the company’s performance. However, in the reporting quarter, Microsoft was able to increase revenue by 7% (up to $52.9 billion) and net profit by 9% ($18.3 billion). While revenue from Windows, Xbox and devices fell sharply last quarter, Microsoft’s cloud, office and server business segments offset declines in other areas.
Windows OEM revenue fell 28% in the third quarter of fiscal 2023. Sales of Microsoft devices (including Surface, HoloLens and computer accessories) fell 30%. Despite the drop in revenue, “demand for PCs turned out to be a little better than we expected,” said Microsoft CFO Amy Hood.
The company separately considers revenues from the sale of Xbox devices. This segment also saw a 30% drop in sales. At the same time, revenue from the sale of Xbox content and services increased by 3% thanks to the growth of Xbox Game Pass. In general, revenue from games decreased by 4%. Microsoft set third-quarter records for monthly active users and monthly active devices for Xbox. Microsoft has almost reached $1 billion in subscription revenue. At the beginning of this month, PC Game Pass was launched in 40 new markets, including Ukraine.
Overall, Microsoft’s More Personal Computing division’s total revenue fell 9% to $13.3 billion due to weak results from Windows OEM, Xbox and devices.
At the same time, revenue from Office, cloud and server products offset declines in other segments. Revenues from server products and cloud services increased by 17%, and revenues from Azure – by 27%.
The number of Microsoft 365 consumer subscribers increased 12% to 65.4 million in the reported quarter. Revenue from commercial Office products and cloud services also increased 13% this quarter, and revenue from Office 365 commercial users increased 14%. The LinkedIn service showed “record engagement” – sessions on the social network increased by 15%, and revenue – by 8%. Microsoft Teams now has 300 million active users, up from 280 million in January.
Source: The Verge