Microsoft published its results for the second fiscal quarter of 2024. In the reporting period, the company received a total profit in the amount of $62 billion, which is 18% higher than in the same period of the previous year. At the same time, net profit grew by 33% and reached $21.9 billion.

This is the first time Microsoft has reported additional revenue from its acquisition of Activision Blizzard. This additional revenue made gaming the company’s third largest business. In total, the gaming division brought in $7.11 billion, while Windows revenues were $5.26 billion. Only the Office and cloud services ($13.47 billion) and server products and cloud services ($23.95 billion) segments bring in more games.

Revenue from Xbox content and services, including Xbox Game Pass, grew 61%. This is largely due to Activision Blizzard’s earnings. Microsoft says the net effect of the acquisition is just over $2 billion in revenue. But integration costs, transaction costs and other revenue-generating costs totaled $930 million. Including other operating expenses ($1.59 billion), the operating loss was $440 million. Financials are expected to improve next quarter. The other day it was reported that Microsoft will lay off 1,900 employees of the gaming division (8% of the workforce) – the Activision Blizzard, Xbox and Bethesda teams will be cut.

Revenues from Office, server products and cloud services continue to lead, providing about 60% of all Microsoft revenues. While revenue from the Windows OEM segment is recovering this quarter and grew 11%, revenue from sales of Surface devices continued to decline (down 9%). And the result in the device segment turned out to be better than the company’s expectations thanks to “stronger results in the commercial segment.” In the third quarter of this direction, a double-digit drop in income is expected.

The Microsoft Office division showed a 13% year-over-year increase in revenue. This was mainly due to Office 365 – the growth in the number of commercial uses was 9%. Microsoft 365 Consumer subscribers are now 16% more – 78.4 million. Office commercial products and cloud services showed a 15% increase in revenue.

Microsoft’s total revenue from the cloud business this quarter was $25.9 billion, which is 20% more than last year. Most of this revenue came from the Azure platform.

Source: The Verge