Microsoft announced financial results for 2023Q2
In addition to Google’s financial revelations, Microsoft has unveiled its fiscal results for the fourth quarter of 2023, concluding at the end of June. These figures indicate revenue of $56.2 billion, marking an 8% escalation compared to the previous year, with a net profit amounting to $20.1 billion, showcasing a substantial 20% rise from the same period last year.
In particular, the Intelligent Cloud division, encompassing services such as Azure, SQL Server, Windows Server, Visual Studio, Nuance, and GitHub, generated a revenue of $23.99 billion, indicating a 15% growth from the same period last year. Moreover, the Productivity and Business Processes division, which incorporates the Office suite, LinkedIn, and Dynamics, delivered revenue of $18.29 billion, demonstrating a 10% growth from the previous year.
As for the Personal Computing division, which includes traditional Windows operating system licensing, hardware, and gaming and search advertising, the revenue was $13.91 billion, a 4% decline from the previous year. This underscores Microsoft’s current focus on its cloud business as a primary source of revenue and the increasing number of service products being developed in a cloud-native format.
However, Microsoft did not separately outline the performance of its Azure cloud platform business. Given the growth exhibited by AWS and Google Cloud, it seems difficult to gauge Microsoft’s current disparity in cloud business development and competition. Nonetheless, during a conference call, Microsoft’s CEO stated that given the Intelligent Cloud division’s annual revenue potential of $110 billion, the actual revenue from Azure services could comprise more than 50%.
In terms of artificial intelligence technology development, Microsoft will continue to collaborate with OpenAI and highlighted that the number of customers creating various AI application services through the Azure OpenAI Service solution has already surpassed 11,000. It also outlined the ongoing commitment to drive the transformation of the artificial intelligence platform.