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MSFT Q2/2023 Earnings Release
- hbcondo714 4y agoRevenue was $52.7 billion and increased 2% Operating income was $20.4 billion GAAP and $21.6 billion non-GAAP, and decreased 8% and 3%, respectively Net income was $16.4 billion GAAP and $17.4 billion non-GAAP, and decreased 12% and 7%, respectively Diluted earnings per share was $2.20 GAAP and $2.32 non-GAAP, and decreased 11% and 6%, respectively
- MuffinFlavored 4y agoEarnings: $2.32 per share, adjusted, vs. $2.29 per share as expected by analysts, according to Refinitiv. Revenue: $52.75 billion, vs. $52.94 billion as expected by analysts, according to Refinitiv. https://www.cnbc.com/2023/01/24/microsoft-msft-earnings-q2-2023.html https://www.cnbc.com/2023/01/24/microsoft-msft-earnings-q2-2... I really can't tell how to judge this. What will this cause reaction wise in terms of "what does this signal for the other top S&P players"? Is it really a "beat" if guidance was lowered? Did they mention anything about forward guidance? Is that what matters more?
- adam_arthur 4y agoBeat references results relative to expectations for the quarter. But yes, guidance generally matters more than the actual quarterly results. Which is why MSFT is flat now after giving weak guidance on their call. Of course, it’d be kind of silly to not sandbag your guidance in this environment. There’s very little to gain by setting expectations high
- deleted 4y ago[deleted]
- dzonga 4y agoone thing I applaud MS for, even though I hate the OS they forced on the world: being able to grow revenues from acquired companies.
- Kukumber 4y ago> being able to grow revenues from acquired companies. correction: being able to inflate and cover up their losses by acquiring already successful companies
- arcticbull 4y agoDoesn’t matter what you call it, the system works apparently. Not many companies can say that.
- Kukumber 4y agoIt is important when you want to draw conclusions; you should use factual data, not your emotions
- eightysixfour 4y agoYour response appears to be much more emotionally driven than articbull’s. He is simply acknowledging their business model and the fact it is clearly a system that works, you’re assigning it some kind of value.
- Kukumber 4y agoI read it again and i can see that, you are right, that wasn't the intent, i felt the comment was trying to downplay losses, so i felt the need to remind the differences, even more so since they just announced laying off 10k employees, including destroying the entire AR/VR/MR team
- arcticbull 4y agoYeah sorry I didn't mean it to come across that way! I see their core business as changing, and they're being resourceful in leveraging acquisitions to continue to deliver shareholder value into the future. I think this is a strategy that many companies have historically executed on very badly.
- Kukumber 4y agoxbox hw/gaming: -13% This one is the most embarrassing of all, i wonder how different that would have been if they had a handheld instead of 2 console with 2 different performance profile, that seems redundant When you look at Nintendo, it's night and day the amount of console they are about to sell, more than both Sony/MS combined each quarter
- kcb 4y agoA pipeline of high quality, broad interest games is still something Xbox is lacking. It's taking quite a while for the Xbox Game Studios acquisitions to bear fruit.
- Kukumber 4y agoHence a handheld would have served well for small hit games, including backward compatibility with XONE/360, it could have also been a catalyzer for their cloud/online services and a bridge with PC gaming (they own windows), Nintendo is profiting from it since most of their catalog (except for their 1st party) comes from PC ports That's exactly Valve's strategy with the Steam Deck, they are capitalizing on it, and it seems to be a good idea, that's unfortunate for xbox, maybe for the next gen
- lapetitejort 4y agoThe Steam Deck relieves so much pressure on Xbox and Sony. All they have to do is play nice with Proton and they are handheld ready. If the Deck fails, there's no hit to their bottom line. Sony has has fully embraced it with their push to PC.
- giobox 4y agoThis coupled with AMD's FSR 2/2.1 I'd argue. FSR can dramatically lower energy requirements while still maintaining acceptable image quality, and is critical for most of the Sony games to run at reasonable frame rates on the Deck.
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- NotYourLawyer 4y agoUp 4% after hours. edit: well that didn’t last
- MuffinFlavored 4y agoCan't wait to see how the rest of the market reacts as this release is digested. Apple should release on February 2nd as per https://www.nasdaq.com/market-activity/stocks/aapl/earnings https://www.nasdaq.com/market-activity/stocks/aapl/earnings Apple + Microsoft + Amazon + Google Class A + Google Class C are ~17.5% of the S&P500 by weight as per https://www.slickcharts.com/sp500 https://www.slickcharts.com/sp500
- icedchai 4y agoNot anymore. The table turns quickly.
- samspenc 4y agoFell due to weak guidance for next quarter.
- deleted 4y ago[deleted]
- didntreadarticl 4y agoIn another thread recently I was wondering if Microsoft are the most diversified of the current big players. What do you reckon?
- TheRealNGenius 4y ago[dead]
- MuffinFlavored 4y agoLook at these business sector names: Azure + other cloud services Dynamics products + cloud services Office 365 commercial Office commercial products + cloud services Office consumer products + cloud services Search + news advertising Excluding traffic acquisition costs Server products + cloud services Windows commercial products + cloud services Windows OEM Xbox content + services From here: https://www.cnbc.com/2023/01/24/microsoft-msft-earnings-q2-2023.html https://www.cnbc.com/2023/01/24/microsoft-msft-earnings-q2-2... Pretty diverse. Gaming, corporation/office stuff. What could they expand into next 3-5 years other than OpenAI? Hardware? They already failed at Zune/I doubt they want to make a phone. > The devices are manufactured by original equipment manufacturers, including Pegatron, and are designed to be premium devices that set examples to Windows OEMs Pegatron makes the Surface apparently. Not like Microsoft can cut Dell out of the loop and make their own laptop (not that I think that's high margin either...)
- delaynomore 4y agoPlus social networking/LinkedIn
- trollski 4y ago[dead]
- icedchai 4y agoConsumer, SMB, enterprise, cloud, hardware, gaming... They have it all.
- deleted 4y ago[deleted]
- MuffinFlavored 4y ago> The company took a $1.2 billion charge in the quarter in connection with its decision to cut 10,000 jobs, revise its hardware lineup and consolidate leases. The charge includes $800 million in employee severance costs. How long does it take to recoup $800m in severance from 10k employees?
- didgetmaster 4y ago$80K per employee?? That seems a little steep to me. I have received some severance packages during my career, but they were never that sweet.
- taneq 4y agoIf that’s commensurate with their overall compensation, I can see why MS needed to trim their workforce.
- MuffinFlavored 4y agoWhat's "scary" is if you look at their headcount on a graph, they are still very high compared to their historical headcounts. https://www.macrotrends.net/stocks/charts/MSFT/microsoft/number-of-employees https://www.macrotrends.net/stocks/charts/MSFT/microsoft/num... Doesn't this make one wonder "are more layoffs coming"/needed? We were all criticizing their board in the comments for laying off 10k or whatever it was. Maybe we should be thanking them that it wasn't more? Not saying I think this, just... not an "unfathomable" argument.
- cherrycherry98 4y agoI had no idea they had gotten so big. Roughly 200k employees puts them on par with the size of Bank of America.
- etempleton 4y agoGiven the still strong performance this might be it. The cuts were across teams, but some teams, such as HoloLens and 343i seemed to be hit harder. They also need to clear way for bringing on board over 10k new employees from Activision.
- outside1234 4y agoSurprised they didn't split out the concert with Sting that Satya had promptly before laying off 10k people.
- fleddr 4y agoThe layoffs make sense now, at this rate Microsoft only makes a yearly profit enough to buy a tiny country.
- radiojasper 4y agoOh my god they wrote that document in an older version of Word (I guess?) and transferred it into a website. The source code of this document is god awful. I know nobody cares, but as a website maker dude I do - and this is hurting. Have a nice screenie of a piece of the source: https://jasper.monster/sharex/firefox_fQy122RwpB.png https://jasper.monster/sharex/firefox_fQy122RwpB.png
- samspenc 4y agoMaybe it's an advertisement for Word, this is a Microsoft earnings report after all. /s
- kyriakos 4y agoWindows OEM revenue decreased 39% Ouch
- ksec 4y ago>Windows OEM revenue decreased 39% If Windows OEM had a 1:1 direct relationship with Windows PC shipment, that is a ~40% decline. I am assuming this is Q2 YoY. If we look back at Earnings Release FY22 Q2 [1], Windows OEM revenue increased 25%. So while FY22 Q2 growth was an outliner and hard to sustain, the 40% decline is still very bad. This also explains a lot of of pressure and negative talk from PC components OEMs like DRAM and SSD, to vendors like Dell and HP. It will be even worst if Smartphone sales dont pick up some of the spill overs. We are looking at another possibility of DRAM and NAND trading at negative COGS. We should have a better understanding of the market once Apple publish their Data in a few more days. [1] https://www.microsoft.com/en-us/Investor/earnings/FY-2022-Q2/press-release-webcast https://www.microsoft.com/en-us/Investor/earnings/FY-2022-Q2...
- pjmlp 4y agoThey only went up due to covid and online working. Point is, the time to replace computers every two years has gone by, and even smartphones are on that point (most countries aren't that much into 2 year replacement phone contracts). I doubt very much that most consumers will bother to buy new computers to replace their Windows 8.x and 10 installations. They will keep using what they have, even without updates, until they eventually break down beyond having the local PC store repair them, and then they will buy a new computer. Same applies to everyone using smartphones on pre-paid cards.
- gigel82 4y agoRealistically, besides the enterprise customers, it's mostly gamers still buying Windows PCs (most of them build it themselves out of parts and likely reusing an upgrade-able Windows 8+ key, instead of buying a prebuilt with OEM Windows). I guess they were trying to get into education as well (Chromebook compete), but with kids back in person that boat has sailed.