Microsoft Records 14% Decline In Net Profit Due To Weak PC Sales
It booked 50.1 billion dollar in revenue and 17.6 billion dollar in net income during first quarter of 2023. The revenue of Microsoft Cloud was recorded at 25.7 billion dollar, which went up 24 per cent year-over-year
The Microsoft recorded a decline of 14 per cent in its net profit for first quarter of 2023 (July-September period). However, its revenues surged by 11 per cent amid global decline in personal computer (PC) sales.
It booked 50.1 billion dollar in revenue and 17.6 billion dollar in net income during first quarter of 2023.
Chairman and CEO of Microsoft, Satya Nadella said that In a world facing increasing headwinds, digital technology is the ultimate tailwind
“In this environment, we’re focused on helping our customers do more with less, while investing in secular growth areas and managing our cost structure in a disciplined way,” said Nadella in a release on 25 October.
The revenue of Microsoft Cloud was recorded at 25.7 billion dollar, which went up 24 per cent year-over-year.
“This quarter Microsoft Cloud revenue was $25.7 billion, up 24% (up 31% in constant currency) year-over-year. We continue to see healthy demand across our commercial businesses including another quarter of solid bookings as we deliver compelling value for customers,” said Amy Hood, executive vice president and CFO of Microsoft.
The decline in the traditional PC market majorly caused the loss in net profit. The reason behind decline is the global shipments which totalled 74.3 million units during the July-September quarter. This was the year-over-year contraction by 15 per cent, according to the Institutional Deposits Corporation (IDC).
The LinkedIn revenue increased 17 per cent whereas its revenue in Intelligent Cloud was increased 20 per cent to 20.3 billion dollar, said Microsoft. And the revenue in More Personal Computing was 13.3 billion dollar and decreased a bit.
A decrease of 3 per cent was witnessed in its Xbox content and services revenue whereas devices revenue surged 2 per cent.