Despite the CEO of Microsoft heralded two particularly tough years for the company, today comes some good news for the multinational, which closes the second quarter with a 2% revenue increase thanks to services cloud.
Cloud services saved Microsoft’s revenue
The market first bet and then lost. In fact, the initial quotes on Microsoft’s revenue were $2.30, but in the end the second quarter closed with a number just above forecasts: 2,32$.
However, it must be noted that the net profit dropped significantly by 12%, reaching quota $16.4 billion. This dizzying decline is attributable to a loss in revenues from sales related to the Production sector, which includes Microsoft 365, PC, Xbox e Surface. Of these categories, the one that fared worst was the area linked to Personal Computers.
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On the other hand, it was the company that made possible a 2% increase in revenues cloud division. However, Nadella remained rather cautious in celebrating: “Organizations are exercising caution given the macroeconomic uncertainty”. What does this mean?
That even if the result beat the predictions, there are still many unknowns to unravel. In fact, the revenues recorded are the lowest since 2016. Of course, Microsoft is not the only big tech to suffer from today’s market trends, for reasons related to inflation, the difficulty in obtaining raw materials and the war in Ukraine.
From here it is easy to understand how Nadella presses caution, also casting an eye on what Microsoft’s next goals will be.
In fact, the company has recently renewed its commitment to OpenAI, demonstrating a willingness to invest massively in artificial intelligence. This is a point that should not be underestimated, as AI would be linked not only to some applications such as Bing, but also to cloud platforms such as Azure.
The fact that it was precisely the clouds that allowed the 2% increase could be interpreted as a prelude, for the company, to continue investing in this direction: the cloud division, in fact, collected revenues for $21.5 billion. In particular, Azure reported an increase of 31%.