Microsoft ended the fourth quarter of 2022 (the second quarter of its fiscal year) with revenue of $52.7 billion, up 2% from $51.7 billion a year earlier. On the other hand, operating profit fell by 8%, from $22 billion in the same period of 2021 to $20 billion.
Net income also fell, 12%, from $18.7 billion to $16.5 billion.
The result was seen as positive by the financial market this Tuesday, the 24th. Microsoft stock, which closed the Nasdaq trading session at US$242, down 0.22%, rose 4.5% in the aftermarket, with paper value US$253.31. at 7:18 p.m. The increase in share value is due to the increase in revenue in the intelligent cloud divisions (artificial intelligence and Azure) and the productivity and processes business (Office applications), which had the following result:
- Smart Cloud jumped 18%, from $18 billion to $21.5 billion;
- And productivity and process applications grew 7%, from $15 billion to $17 billion.
In a letter to shareholders, Microsoft CEO Satya Nadella declared that “the next wave of computing is emerging” as Microsoft’s cloud transforms cutting-edge artificial intelligence models into new computing platforms: “We are committed to helping customers our platforms to use and do more with less today, as well as innovate for the future in a new age of artificial intelligence.”
It is worth remembering that last Monday, the 24th, the company confirmed a new round of investment in ChatGPT. In a multibillion-dollar deal, the contribution could reach $10 billion, but values were not confirmed by the company or OpenAI, the platform’s developer. ChatGPT gained prominence in the specialist media and has been seen as the next frontier of artificial intelligence with generative AI. Mobile Time has already published a series of articles on this topic and articles on this topic. Click on the following links:
Two interviews with ChatGPT;
Microsoft releases Azure OpenAI Service, which will include ChatGPT;
The agreement between Microsoft and OpenAI is not exclusive, says Sam Altman;
ChatGPT: no more bots like before;
How generative technologies (OpenAI and ChatGPT) can contribute to the creation of chatbots;
The downside of Microsoft’s report was for the area of personal computing (hardware and Windows) with a 19% drop to $14 billion in revenue, compared to $17 billion a year earlier. The company also booked $800 million as the first part of the $1.2 billion cost of 10,000 layoffs it will make through the second quarter of 2023.