Microsoft cuts its profits by almost 20%

tech giant microsoft reported more than 72,700 million historic benefits this Tuesday USD in fiscal 2022 ending in June, largely thanks to the continued growth of cloud services led by Azure. This annual benefit 19% higher than the previous yearwhen it first reached 60,000 million, turnover was up 18% year-on-year to nearly 198,300 million, driven by ‘hardware’ (product) versus ‘software’ (services).

“In a dynamic environment, we saw strong demand with our cloud platform, gained share and increased customer engagement,” said Amy Hood, California company’s chief financial officer, in the earnings report. During the year as a whole, cloud accounts for most of the billing75,251 million, 25% more; This was followed by the productivity and business processes segment and the personal computing segment (59.655 million), with an increase of 63,364 million.

In the fourth quarter from April to June, Microsoft’s numbers were positive, although less lively: 16,740 million, 2% more, with turnover of 51,865 million, in both cases 12% more than in the same period of the financial year. year 2021. In this sense, these quarterly results were worse than expected Wall Street analysts and the company acknowledged that it faces a “changing” economic situation and “unpredictable” elements, from a stronger dollar to the war in Ukraine.

The “negative” exchange rate reduced its revenue by 595 million, while reduced operations in Russia meant expenses for bad debts, impaired assets and layoffs worth 126 million. He also said that production cuts and “disruption” of the personal computer market in China amounted to a wage of 300 million, and the latest adjustments to the workforce have resulted in 113 million severance pay.

In the last quarter, Microsoft saw a notable 40% growth in cloud billing and 20% growth in its Azure service, but specialist media noted that this growth was lower than in the same period last year. There are shadows in other segments as well, such as a 6% drop in Xbox console and games or a 2% drop in Windows licenses paid for by PC manufacturers.

Specialist media, between April and June its growth Benefits weakest in 2 years, right after the bright time following the covid-19 pandemic that gave rise to the implementation of telework and digital entertainment. Still, the company’s CEO, Satya Nadella, said he sees “an opportunity to help every customer in every industry use digital technology to meet today’s challenges and come out stronger,” adding that “no company is better positioned in this space.” corporate digitization.

The results announced at the close of the stock market reacted negatively and the shares of the listed company lost 0.2% in electronic transactions. Last year, Microsoft lost 12% of its capital and stands at $1.95 billion.

Source: Informacion

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