Seattle — Global economic uncertainties and challenges reported on Tuesday hit Microsoft Quarterly results It fell short of Wall Street and its own expectations.
High-tech giants said sales for the quarter ending June 30 were $ 51.9 billion, up 12% year-on-year. Profit was up 2% to $ 16.7 billion.
The result even overlooked the decline in Microsoft’s own expectations. In early June, the company Lowered Quarterly guidance to explain the ever-rising US dollar.
Chris Caposella, head of marketing for the company, said: Said After the revised guidance is released. “That’s one of the things we can’t control.”
Since then, the situation seems to be getting worse. Foreign currency problems caused by the war in Ukraine and broader economic uncertainty cost $ 595 million quarterly as sales returned to the US dollar in Europe, Japan and elsewhere. I did. In addition, slowing production of personal computers in China and declining consumer demand have reduced sales of Windows operating systems pre-installed on new computers by more than $ 300 million.
Revenues fell by more than $ 100 million due to a slowdown in advertising spending on LinkedIn and Microsoft search products.
Without currency issues, Microsoft’s flagship cloud computing platform, Azure, would have grown 46%. Instead, it grew 40 percent below what investors expected. Without the strong dollar, the company’s two major enterprise business lines and intelligent clouds, called productivity and business processes, Would have met The first guidance provided to investors in April.
“I felt that commercial demand was fairly healthy overall,” Microsoft’s director of investor relations, Brett Iversen, said in an interview Tuesday. “All the long-term theories of people who want to move to the cloud to digitize their business, to be able to do more, or to save money.”
He said this is reflected in a strong long-term booking commitment, including a record number of Azure transactions in excess of $ 1 billion.
Overall revenue for Microsoft’s commercial cloud computing products, including Office 365 subscriptions, increased 28% to $ 25 billion.
In a statement, the company’s CEO, Satya Nadella, said, “We see real opportunities to help every customer in every industry use digital technology to overcome today’s challenges and become stronger. I am. “
Microsoft’s personal computing business grew 2% to $ 14.4 billion, with sales of Windows operating systems pre-installed on personal computers declining by 2%.Investors were ready to see some weaknesses PC shipments are declining From weakening demand and supply chain problems caused by the blockade of the coronavirus in China.
Revenue from Xbox content and services fell by 6% as consumers spent less time playing video games.
Unemployment remains close to its lowest level in 50 years, and LinkedIn, a professional social network purchased by Microsoft in 2016, grew 26% from 34% in the previous quarter.
According to the company, the costs associated with shrinking the business in Russia were $ 126 million, and the cost of paying severance pay to dismissed employees was an additional $ 113 million.
Iversen said the layoffs were due to a “minority role” and the company plans to increase its workforce in the new fiscal year beginning July 1.
