Microsoft Says Q4 2022 Sales Slowed, Profits Slumped as Cloud Computing Revenue Sees Growth

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Microsoft on Tuesday mentioned gross sales slowed and earnings slumped within the final quarter of 2022 as a darkening financial outlook pushed it to put off 10,000 employees.

The Washington state-based tech large — proprietor of LinkedIn, Xbox and Home windows — mentioned total gross sales rose simply two p.c within the October-to-December interval, to $52.7 billion (roughly Rs. 4,30,325 crore), the slowest rise in six years.

Internet revenue landed at $16.4 billion (roughly Rs. 1,33,915 crore) for the quarter, down 12 p.c year-on-year, in line with its earnings launch.

The outcomes nevertheless met, or in some segments exceeded, expectations and Microsoft’s share worth was up by greater than 4 p.c in late buying and selling after the outcomes have been introduced.

Microsoft chief govt Satya Nadella mentioned final week he was shedding about 5 p.c of the corporate’s workforce, simply days earlier than pumping a number of billion {dollars} into OpenAI, the corporate behind the controversial chatbot ChatGPT.

The job cuts matched comparable culls at different tech giants as corporations reversed a serious hiring spree through the pandemic when demand for tech merchandise exploded.

Nadella has mentioned that ChatGPT, and different synthetic intelligence breakthroughs by the OpenAI analysis firm, could be built-in into Microsoft merchandise that embrace the Home windows working system, Workplace and the Bing search engine.

Microsoft can be making an attempt to beat main regulatory hurdles to finish its buyout of video gaming large Activision Blizzard for $68.7 billion (roughly Rs. 5,64,474 crore).

US and EU regulators are extremely skeptical of the acquisition and allege it might give an unfair benefit to Microsoft’s Xbox console over rivals like Sony’s PlayStation.

The group’s quarterly outcomes have been eagerly awaited by the marketplace for the nearer they provide on cloud computing, which is Microsoft’s largest enterprise and a bellwether for the bigger economic system.

The corporate’s “clever cloud” enterprise, which brings collectively its servers and information analytics companies, introduced in $21.5 billion within the second quarter of its fiscal yr, up 18 p.c year-on-year.

The expansion of its distant computing platform, Azure, slower than standard at 31 p.c, carried the exercise.

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