Cloud computing saves Microsoft quarterly results

Published January 25th, 2023 - 06:36 GMT
Microsoft earnings lifted by Cloud unit
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ALBAWABA — Microsoft on Wednesday said the networking outage which took down its Azure platform and other cloud services was recovered after affecting millions around the globe.

 

The outage ominously came one day after Microsoft posted weaker-than-expected revenue and a double-digit percentage drop in profit in the last quarter of 2022, saying its savior was its cloud services division, which outperformed other units.

 

The Washington state-based tech said overall sales rose just 2 percent in the October-to-December period, to $52.7 billion, the slowest rise in six years amid global economic uncertainty and slow demand for personal computers and software.

 

According to its earnings release, net profit landed at $16.4 billion for the quarter, down 12 percent year-over-year, slightly less than analysts had expected.

 

The company's cloud business made $21.5 billion in the second quarter of its fiscal year, up 18 percent year-over-year.

 

The growth of its remote computing platform, Azure, slower than usual at 31 percent, carried the business unit.

 

Microsoft last week said it was laying off 12,000 employees, about 5 percent of the company's workforce, just days before investing $10 billion into OpenAI, the company behind chatbot ChatGPT.

 

“The next major wave of computing is being born, as the Microsoft Cloud turns the world’s most advanced AI models into a new computing platform,” said Satya Nadella, chairman and chief executive officer of Microsoft, in a post on the company’s website.

 

“We are committed to helping our customers use our platforms and tools to do more with less today and innovate for the future in the new era of AI,” Nadella added.

 

Microsoft shares rose more than 4 percent in late trading after the results were announced, but retreated 1.2 percent, at 6:06pm GMT.

 


 


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