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Microsoft allayes market concerns by projecting rapid revenue growth

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Microsoft allayes market concerns by projecting rapid revenue growth

Demand for cloud computing services, which is driving Microsoft Corp.’s projection of double-digit revenue growth this fiscal year, sent shares up 5% on Tuesday.

The positive prediction, which comes as investors prepare for an economic slowdown with inflation raging and consumers cutting back on spending, demonstrates how Microsoft continues to profit from the pandemic-led drive to mixed work arrangements.

Microsoft’s estimate, according to Bob O’Donnell, an analyst for TECHnalysis Research, reveals that businesses are still shifting more work and business online despite the bad economic trends.

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Regarding the forecast, he added, “I don’t think it’s specific to Microsoft.” Because of the variety of businesses it operates in and the crucial role that its software and computing services play for organisations, Microsoft is in an exceptional position.

Microsoft’s fourth-quarter results came in slightly below expectations despite the optimistic outlook for the fiscal year that begins on July 1. This was due to a stronger dollar, slower PC sales, and reduced advertising expenditure.

Although Azure, Microsoft’s cloud service, saw record bookings during the quarter, according to Brett Iversen, general manager of investor relations at Microsoft.

Azure growth came in at 40%, falling short of Visible Alpha’s 43 percent analyst projection. If foreign exchange variables are taken out, it increased by 46%. Revenue increased by 20% to $20.9 billion in its larger Intelligent Cloud division, exceeding the average Wall Street projection of $19.1 billion, according to Refinitiv.

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The Intelligent Cloud segment was anticipated to generate revenues for the first quarter ending September 30 ranging from $20.3 billion to $20.6 billion, with the upper end slightly above analysts’ expectations.

“We are seeing larger and longer-term commitments,” CEO Satya Nadella said. “We also secured a record number of $100 million and $1 billion and beyond transactions this quarter. “We introduce 10 regions over the next year,” says one supplier, “and we have more data centre regions than any other.”

Microsoft is under pressure from a rising dollar since it generates nearly half of its revenue outside of the US. As a result, the business lowered its expectations for revenue and earnings for the fourth quarter in June. This year, shares of the Redmond, Washington-based corporation have decreased by nearly 25%.

In contrast to a 1% decline in the same period a year prior, the U.S. dollar index increased by more than 2% in the quarter that ended in June and by nearly 12% this year.

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Iversen told Reuters that if it weren’t for the stronger currency, the company’s 12 percent year-over-year revenue increase would have been 4 percentage points higher. The fourth quarter’s revenue was down by three major causes by nearly $1 billion.

Revenue was impacted negatively by foreign exchange by roughly $600 million. Windows OEM revenue was reduced by about $300 million as a result of the PC industry slump. And the decrease in advertising expenditure reduced the revenue from ads on LinkedIn, Search, and news by more over $100 million.

Because of their scale, Microsoft finds it difficult to remain independent of the state of the economy, according to John Freeman, vice president of equities research at CFRA Research. We have inflation, which will undoubtedly reduce consumer demand.

The company reported that weaker consumer demand also had an impact on gaming revenue, which decreased 7 percent year over year owing to a decline in Xbox hardware, content, and services. This quarter, it is predicted to shrink in the low to mid-single digits due to losses in first-party content.

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Microsoft’s fourth-quarter sales was $51.87 billion, up from $46.15 billion in the same period last year. According to Refinitiv IBES data, analysts had projected revenue of $52.44 billion on average.

For the quarter that ended on June 30, net income increased to $16.74 billion, or $2.23 per share, from $16.46 billion, or $2.17 per share, a year earlier.

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Google I/O 2023 will introduce the Google Pixel 7a tomorrow. ways to view it live

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Google I/O 2023 will introduce the Google Pixel 7a tomorrow. ways to view it live

Google I/O is an annual developer conference held by Google, where the company showcases its latest products, software updates, and innovations. The conference is a highly anticipated event for technology enthusiasts and fans of Google products. This year, Google I/O 2023 is expected to introduce the Google Pixel 7a, the latest addition to the Google Pixel smartphone lineup.

If you are excited to see the unveiling of the Google Pixel 7a and want to watch it live, there are several ways to do so. Here are some of the ways you can view the announcement:

  1. Watch the Livestream on YouTube

Google I/O will be livestreamed on YouTube, so you can watch the entire event from the comfort of your own home. The livestream will be available on the Google Developers YouTube channel, and you can watch it on your computer, smartphone, or tablet.

  1. Follow the Event on Twitter

Google I/O will also be covered on Twitter, so you can follow the official Google I/O Twitter account to get live updates and news about the event. You can also follow tech journalists and bloggers who will be attending the conference to get a more detailed view of the announcements.

  1. Check Out Tech News Websites

Many tech news websites, such as The Verge, TechCrunch, and Engadget, will be covering the Google I/O event and the unveiling of the Google Pixel 7a. You can visit these websites to get the latest news and analysis about the product, as well as other announcements made during the event.

In conclusion, the Google I/O 2023 conference is an exciting event for tech enthusiasts, and the unveiling of the Google Pixel 7a is expected to be a highlight of the conference. By watching the livestream on YouTube, following the event on Twitter, or checking out tech news websites, you can stay up-to-date on the latest developments and announcements. Whatever method you choose, it’s sure to be an exciting and informative event for anyone interested in technology and the Google Pixel lineup.

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Entertainment News Platforms – anyflix.in      
Construction Infrastructure and Mining News Platform – https://cimreviews.com/
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Podcast Platforms – https://anyfm.in

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