Microsoft Office, Windows, and cloud boosts Q1 2022 earnings

Microsoft posted the primary quarter of its 2022 financial results today, reporting income of $45.3 billion and a internet earnings of $20.5 billion (GAAP). Revenue is up 22 %, and internet earnings has elevated by 48 %. Microsoft has seen robust income efficiency in its cloud, server, and Office companies this quarter.

Microsoft might need simply launched Windows 11 earlier this month, however within the months forward of this new model of Windows, PC gross sales have began to say no within the US resulting from provide points.

That doesn’t appear to have impacted Microsoft’s Windows revenues, although. Windows OEM income has elevated by 10 % this quarter, regardless of what Microsoft calls “continued PC demand impacted by supply chain constraints.”

Windows industrial merchandise and cloud providers income has additionally elevated by 12 %, due to demand for Microsoft 365. Windows 11 has solely simply arrived on new units earlier this month, so Microsoft and OEMs will probably be hoping the availability points enhance and that the brand new working system drives much more demand for laptops and PCs.

Over on the Surface aspect, we’re now into the second quarter of Surface Laptop 4 and Surface Pro 7 Plus gross sales for Microsoft’s Surface revenues. Surface income has decreased by 17 % this quarter, and Microsoft says that’s associated to a stronger prior 12 months comparable.

Photo by Vjeran Pavic / The Verge

It’s almost been a 12 months since Microsoft’s Xbox Series X and Series S consoles have been in the marketplace, and so they’ve been frequently rising {hardware} income for Xbox in current months. Hardware income is up once more this quarter by 166 %, due to continued demand for Xbox Series X and Series S consoles.

Microsoft’s total gaming income can also be up by 16 %, almost $3.6 billion for the quarter and a file Q1 for Xbox. But Xbox content material and providers income has solely elevated by 2 %. Microsoft says there was some “growth in Xbox Game Pass subscriptions,” however the firm isn’t itemizing a brand new determine for its subscriber depend. The final publicly disclosed one was 18 million Xbox Game Pass subs in January 2021.

As all the time, it’s the cloud progress that has been spectacular for Microsoft’s revenues, notably as companies modify to hybrid work. Revenue in clever cloud is up 31 % 12 months over 12 months, together with Azure and different cloud providers income progress of fifty %.

Office has additionally had a robust quarter, with Office shopper merchandise and cloud providers income up 10 %, and Microsoft 365 shopper subscribers up 19 % to 54.1 million in whole.

Microsoft’s enterprise variations of Office and related cloud providers are additionally up 18 % in income 12 months over 12 months, with Office 365 industrial income up 23 %. If you’re questioning whether or not companies are transferring to the cloud or not, Office industrial merchandise income dipped 13 % 12 months over 12 months, due to the continued shift to cloud providers.

Developing…