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Microsoft profits rise again despite knocks from China, Russia

Finishes the year with close to $200 billion annual revenue and $185 million a day in profits

Microsoft reported poorer than expected fourth quarter results, but still managed to end its FY 2022 rather well.

In the fourth quarter of its fiscal year – the three months to June 30 – the Microsoft reported taking a $300 million hit from Chinese PC production slowdowns and slugged itself $126 million due to "bad debt expense, asset impairments, and severance" caused by quitting its Russian business. It also saw about a $100 million dip in expected advertising bookings on its online properties, primarily LinkedIn, search, and news.

Those charges hardly put a dent in the Windows giant's quarter, which included the following highlights:

  • Revenue grew 12 percent on the quarter to $51.9 billion, although Microsoft said the strong US dollar didn't help matters.

  • Net income grew slightly, up two percent to $16.7 billion for the quarter, or over $185 million a day in profit.

  • Earnings per share rose three percent on the quarter, to $2.23.

"We see real opportunity to help every customer in every industry use digital technology to overcome today's challenges and emerge stronger," said Satya Nadella, chairman and chief executive officer of Microsoft. "No company is better positioned than Microsoft to help organizations deliver on their digital imperative – so they can do more with less."

Office Commercial and Personal sales grew nine percent and Dynamics 365 revenue was up 31 per cent, helping to drive cloud revenue across the board up 19 percent. LinkedIn's revenues were up 26 percent and Azure had a storming quarter, up 40 percent in revenue terms.

Windows OEM revenue was less than stunning, down two percent due to the aforementioned China-related issues. Xbox revenue also fell by 6 percent. Sales of Microsoft's Surface PCs rose up 10 percent and Bing brought in 18 percent more cash in a good quarter for search.

Despite some stuttering in the last quarter Microsoft's full year figures were excellent, with Redmond reporting a great year for revenues and profits.

  • Revenue for fiscal 2022 was $198.3 billion, up 18 percent from last year.

  • Net income grew by 19 percent to $72.7 billion, making it a very profitable year.

  • This was reflected in earnings per share, which grew 20 percent to $9.65.

While Wall Street hoped for even better numbers, Microsoft's stock price wasn't hurt, ending a couple of points up in after-close trading. It seems money markets are content with Redmond's revenue-generating feats and potential. ®

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