Product Revenue: Decreased from $17,366M to $15,588M.
Service and Other Revenue: Increased from $31,994M to $37,269M.
Total Revenue: Increased from $49,360M to $52,857M.
Product Cost of Revenue: Decreased from $4,584M to $3,941M.
Service and Other Cost of Revenue: Increased from $11,031M to $12,187M.
Total Cost of Revenue: Increased slightly from $15,615M to $16,128M.
Gross Margin: Increased from $33,745M to $36,729M.
Research and Development (R&D) Expenses: Increased from $6,306M to $6,984M.
Sales and Marketing Expenses: Increased from $5,595M to $5,750M.
General and Administrative (G&A) Expenses: Increased from $1,480M to $1,643M.
Operating Income: Increased from $20,364M to $22,352M.
Other Income (Expense), Net: Improved from ($174M) to $321M.
Income Before Income Taxes: Increased from $20,190M to $22,673M.
Provision for Income Taxes: Increased from $3,462M to $4,374M.
Net Income: Increased from $16,728M to $18,299M.
Highlights:
Total revenue increased year over year, driven by growth in Service and Other Revenue, despite a decline in Product Revenue.
Gross margin improved, indicating higher profitability from revenue.
All expense categories (R&D, Sales and Marketing, G&A) increased year over year.
Operating income and income before income taxes both increased, reflecting higher overall profitability.
Net income increased year over year, despite a higher provision for income taxes.
NINE MONTHS SUMMARY:
Total revenue for the nine months ended March 31 increased from $146,405M in 2022 to $155,726M in 2023.
Operating income for the nine months ended March 31 increased from $62,849M in 2022 to $64,269M in 2023.
Net income for the nine months ended March 31 decreased from $55,998M in 2022 to $52,280M in 2023.
Microsoft Cloud revenue: Increased by 22% (GAAP), with a 3% constant currency impact, resulting in a 25% increase in constant currency terms.
Office Commercial products and cloud services: Increased by 13% (GAAP), with a 4% constant currency impact, resulting in a 17% increase in constant currency terms.
Office 365 Commercial: Increased by 14% (GAAP), with a 4% constant currency impact, resulting in an 18% increase in constant currency terms.
Office Consumer products and cloud services: Increased by 1% (GAAP), with a 3% constant currency impact, resulting in a 4% increase in constant currency terms.
LinkedIn: Increased by 8% (GAAP), with a 2% constant currency impact, resulting in a 10% increase in constant currency terms.
Dynamics products and cloud services: Increased by 17% (GAAP), with a 4% constant currency impact, resulting in a 21% increase in constant currency terms.
Dynamics 365: Increased by 25% (GAAP), with a 4% constant currency impact, resulting in a 29% increase in constant currency terms.
Server products and cloud services: Increased by 17% (GAAP), with a 4% constant currency impact, resulting in a 21% increase in constant currency terms.
Azure and other cloud services: Increased by 27% (GAAP), with a 4% constant currency impact, resulting in a 31% increase in constant currency terms.
Windows OEM: Decreased by 28% (GAAP), with no constant currency impact, resulting in a 28% decrease in constant currency terms.
Windows Commercial products and cloud services: Increased by 14% (GAAP), with a 4% constant currency impact, resulting in an 18% increase in constant currency terms.
Xbox content and services: Increased by 3% (GAAP), with a 2% constant currency impact, resulting in a 5% increase in constant currency terms.
Search and news advertising excluding traffic acquisition costs: Increased by 10% (GAAP), with a 3% constant currency impact, resulting in a 13% increase in constant currency terms.
Devices: Decreased by 30% (GAAP), with a 4% constant currency impact, resulting in a 26% decrease in constant currency terms.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
