14 DAY TRIAL // Microsoft has announced its financial results for the fourth quarter of the fiscal year 2022, and unsurprisingly, the company says its revenue increased substantially.
More specifically, the revenue reached $51.9 billion, and this represents an increase of 12 percent. The operating system went up 8 percent to $20.5 billion, while the net income jumped just 2 percent to $16.7 billion.
“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.”
When it comes to certain divisions, the Intelligent Cloud unit performed pretty well, as it increased its revenue by 20 percent to $20.9 billion.
Recent events worldwide also impacted Microsoft’s quarter
In case you’re wondering how Windows performed, the More Personal Computing division has recorded an increase of 2 percent and $14.4 billion in revenue, though the Windows OEM revenue went down 2 percent.
Microsoft explains that the recent events worldwide have obviously impacted the quarter.
“Extended production shutdowns in China that continued through May and a deteriorating PC market in June contributed to a negative impact on Windows OEM revenue of over $(300) million. Reductions in advertising spend contributed to a negative impact on LinkedIn as well as Search and news advertising revenue of over $(100) million,” the company explains.
“With the ongoing war in Ukraine, we made the decision to significantly scale down our operations in Russia. As a result, we recorded operating expenses of $126 million related to bad debt expense, asset impairments, and severance. As part of a strategic realignment of our business groups, we recorded employee severance expenses of $113 million, excluding Russia.”