Microsoft’s net profit in the first quarter was US $20.505 billion, a year-on-year increase of 48%

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Tencent technology news on October 27, Microsoft released the first quarter financial report of fiscal year 2022 after midnight US Eastern time on Tuesday. The report shows that Microsoft’s revenue in the first quarter was $45.317 billion, an increase of 22% over $37.154 billion in the same period last year; The net profit was US $20.505 billion, an increase of 48% over US $13.893 billion in the same period last year.
First quarter results:
In the first quarter ended September 30, Microsoft’s net profit was $20.505 billion and diluted earnings per share was $2.71, which was much better than that in the same period last year. In the first quarter of fiscal year 2021, Microsoft’s net profit was $13.893 billion and diluted earnings per share was $1.82. Microsoft’s first quarter earnings per share were better than analysts’ average expectations. According to a Thomson Reuters survey, analysts had expected Microsoft’s first quarter earnings per share to be $2.07.
Microsoft’s revenue in the first quarter was $45.317 billion, up 22% from $37.154 billion in the same period last year, also better than analysts’ expectations. According to a Thomson Reuters survey, analysts had expected Microsoft’s first quarter revenue to be $43.97 billion. Among them, the product revenue was US $16.631 billion, higher than US $15.803 billion in the same period last year; Service and other revenue was $28.686 billion, up from $21.351 billion in the same period last year.
By department, the revenue of Microsoft’s productivity and business processes business unit in the first quarter was $15.039 billion, up from $12.319 billion in the same period last year; Operating profit was $7.581 billion, up from $5.706 billion in the same period last year. Among them, the revenue of office commercial products and cloud services increased by 18% year-on-year and 16% year-on-year at a fixed exchange rate; The revenue of office 365 commercial products increased by 23% year-on-year and 21% year-on-year at a fixed exchange rate; The revenue of office consumer products and cloud services increased by 10% year-on-year and 8% year-on-year at a fixed exchange rate; LinkedIn’s revenue increased by 42% year-on-year and 39% year-on-year at a fixed exchange rate; The revenue of dynamics products and services increased by 31% year-on-year and 29% year-on-year at a fixed exchange rate; Dynamics 365 revenue increased by 48% year-on-year and 45% year-on-year at a fixed exchange rate.
The revenue of Intelligent Cloud business division was US $16.964 billion, higher than US $12.986 billion in the same period last year; Operating profit was $7.562 billion, up from $5.422 billion in the same period last year. Among them, the revenue of server products and cloud services increased by 35% year-on-year and 23% year-on-year at a fixed exchange rate; Azure’s revenue increased by 50% year-on-year and 48% year-on-year at a fixed exchange rate.
The revenue of more personal computing division was US $13.317 billion, higher than US $11.849 billion in the same period last year; Operating profit was $5.095 billion, up from $4.748 billion in the same period last year. Among them, the revenue of windows OEM increased by 10% year-on-year and 10% year-on-year at fixed exchange rate; The revenue of windows commercial products and cloud services increased by 12% year-on-year and 10% year-on-year at a fixed exchange rate; Xbox content and service revenue increased by 2% year-on-year, flat year-on-year at a fixed exchange rate; Search advertising revenue increased by 40% year-on-year and 39% year-on-year at a fixed exchange rate; Surface revenue fell 17% year-on-year and 19% year-on-year at a fixed exchange rate.
Microsoft’s total revenue cost in the first quarter was $13.646 billion, up from $11.002 billion in the same period last year. Among them, the product revenue cost was US $3.792 billion, higher than US $3.597 billion in the same period last year; Service and other revenue costs were $9.854 billion, up from $7.405 billion in the same period last year. Microsoft’s gross profit in the first quarter was $31.671 billion, up from $26.152 billion in the same period last year.
Microsoft’s R & D expenditure in the first quarter was $5.599 billion, up from $4.926 billion in the same period last year; Sales and marketing expenditure was US $4.547 billion, higher than US $4.231 billion in the same period last year; General and administrative expenditure was $1287 million, up from $1119 million in the same period last year.
Microsoft’s operating profit in the first quarter was $20.238 billion, up 27% from $158.76 in the same period last year.
Executive comments:
Satya NADELLA, CEO and chairman of Microsoft, said: “digital technology is a deflationary force in an inflationary economy. Enterprises, large or small, can improve productivity and the affordability of products and services by strengthening technology intensity. Microsoft cloud provides the end-to-end platforms and tools that organizations need in this period of transition and change.”
“We made a strong start to the fiscal year. In the first quarter, our Microsoft cloud achieved $20.7 billion in revenue, an increase of 36% year-on-year,” said Amy hood, executive vice president and chief financial officer of Microsoft.
Share price performance:
Microsoft shares rose $1.98, or 0.64%, to $310.10 in regular trading on the Nasdaq stock market on Tuesday local time. At the time of publication, Microsoft’s share price fell slightly by $0.11, or 0.04%, to $310.00 in subsequent after hours trading. In the past 52 weeks, Microsoft’s lowest share price was $199.62 and its highest share price was $312.39. According to Tuesday’s closing price, Microsoft’s market value is about $2.328 trillion. (compiled by Tencent technology / Wuji)