Microsoft’s financial report for the quarter ended December 2021 – 20% revenue growth, strong performance of all divisions

Microsoft’s financial report for the quarter ended December 2021 – 20% revenue growth, strong performance of all divisions

Microsoft’s financial report for the quarter ended December 2021 – 20% revenue growth, strong performance of all divisions

News unit : Company Microsoft on January 25, 2022 (Bahan 5, 1400) released its financial report for the quarter ending December 2021 (corresponding to the second quarter of the financial year 2022 company) published. According to this report, Microsoft’s revenue in the last quarter reached 51.7 billion dollars with an annual increase of 20%. The company’s operating profit and net profit were 22.2 and 18.8 billion dollars, respectively, which experienced 24 and 21 percent growth compared to the same period last year. Also, Microsoft has announced diluted earnings per share of $2.48, which has registered a 22% year-on-year increase. The powerful performance of cloud, Windows and office services was one of the reasons for the increase in the company’s income last season.

According to Satya Nadella, the CEO of Microsoft, “Digital technology is the world’s most flexible resource for overcoming limitations and reinventing work and everyday life. As the percentage of this technology’s influence in the global gross product continues to increase, we also rely on the support of technology and an operating model that strengthens strategy, culture and a sense of common purpose, and we innovate and invest in diverse and growing markets. . In a conversation with the company’s shareholders, he pointed to a “structural change in the demand for personal computers” and announced that the number of active Windows 10 and 11 devices per month has now reached more than 1.4 billion.

Satya Nadella CEO of Microsoft
Amy Hood, Executive Vice President and Chief Financial Officer of Microsoft, referring to the company’s recent financial report, says: “The favorable commercial implementation that resulted from the significant increase in future revenues (bookings) following Azure’s long-term commitments is, Microsoft has increased cloud revenue by 32% year-on-year to $22.1 billion. Also, Amy Hood has estimated that Microsoft will earn about 48.5 to 49.3 billion dollars in the company’s third fiscal quarter.

Continuing the performance of Microsoft’s three main divisions, including business processes and productivity, intelligent cloud and more personal computing. We will review.

Business Processes and Productivity

In this segment, Microsoft has achieved a revenue equal to 15.9 billion dollars, which shows a 19% increase compared to the same period before. In this regard, the revenue of commercial office and cloud services increased by 14%, which is mainly due to the 19% growth of commercial office 365 revenue. In addition, non-commercial office (Consumer) revenue and its cloud services have seen a 15% growth, and the number of Microsoft 365 Consumer services subscribers has reached 56.4 million people with an annual increase of nearly 20%. In addition to these cases, Microsoft’s income from LinkedIn and Dynamics products and its related cloud services also increased by 37 and 29%, respectively, and the growth of LinkedIn’s income was due to the high demand for advertising, and the increase in the income of the Dynamics department mainly increased by 45%. Dynamics 365 revenue has been relevant.

Smart Cloud

Revenue of Microsoft in the cloud sector Houshmand also saw growth and reached 18.3 billion dollars with a 26% increase. The American company considers the growth of this segment’s revenue as a result of the increase in the revenue of its server products and cloud services, which have achieved a 29% increase compared to the previous similar period, relying on the 46% growth of Azure and other cloud services.

More personal computing

This division includes Microsoft Windows, the Bing search engine, Xbox and Surface computers, and its revenue grew 15% to $17.5 billion. According to news sources, the personal computer market has had a prosperous year with the supply of nearly 340 million PCs due to the continuation of the Corona epidemic and the increase in demand. Now, about 6 months have passed since the release of Windows 11, Microsoft’s revenue from Windows provided to OEM companies has experienced a 25% growth in the period from October to December 2021. In addition, commercial Windows products and cloud services related to it have also seen an annual growth of 13%.

Microsoft Surface Laptop Studio

On the other hand, Microsoft’s income from Xbox content and related services increased by 10% has been found The American company announced in early January that the number of Xbox Game Pass subscribers has reached 25 million thanks to the offering of video games such as Halo Infinite and Forza Horizon.

Also, Microsoft has recently formed a separate division called Microsoft Gaming. With CEO Phil Spencer (Phil Spencer) as well as his plan to buy Activision Blizzard, the publisher of the popular Call of Duty game, for $68.7 billion; The amount is unprecedented in the company’s 46-year history, and the deal is likely to be finalized by 2023. Therefore, it seems that the formation of the new division and its future plans will affect the company’s income in the third quarter.

Unlike last quarter, Surface’s income in the latest quarter with the release of Surface Pro 8 and Surface Laptop Studio In October, it was associated with an 8% growth. Also, we should not forget the Surface Laptop SE, which was introduced for $249 for use in schools and runs a special version of Windows 11 on it. In addition, the search and news advertising division (without considering the costs related to buying traffic) experienced a growth of 32%, like other parts of Microsoft’s business.

In a conversation with the company’s shareholders, Nadella also spoke about his view on Metaverse . According to him, Microsoft is “very well positioned to take advantage of what is the next wave of the Internet.” He further added, “I think the next wave of the Internet will be a wider world where people, organizations, game developers, and others can create their own worlds in the Metaverse. Microsoft in the past quarter, as in the last quarter, a total of 10.9 billion dollars in the form of dividends and share buybacks to its shareholders. returned, which indicates a 9% growth compared to the same quarter of the last financial year.

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