Microsoft announced robust fourth quarter and fiscal year results driven by its cloud business for investors in today’s earnings call.
Growth In Revenue
Ahead of the earnings call, Microsoft posted a press release.
The tech giant reported an 8% growth in revenue to $56.2 billion for the quarter ending June 30, 2023, compared to the corresponding period in the previous fiscal year.
The operating income of $24.3 billion reflected an 18% increase, while net income grew by 20% to reach $20.1 billion. When adjusted for constant currency, the figures showed even more robust performance.
During the earnings call, Microsoft discussed continued growth opportunities in search and advertising despite some near-term headwinds.
In addition to expanding the ad network to 187 markets, Microsoft Advertising channels now include search, display, native, retail media, video, and connected TV.
Despite lower ad spending impacting search and LinkedIn ad revenue, LinkedIn’s overall income and sessions increased.
Screenshot from Microsoft, July 2023Bing Chat Exceeds One Billion Sessions
Bing search volumes and Microsoft Edge browser share continued to grow, gaining stake for several quarters.
Expanding AI chat access to businesses through Bing Chat Enterprise, Bing also powers ChatGPT’s default search, bringing users AI-generated answers and search results (when available).
Most impressively:
“Bing users have engaged in more than one billion chats and created more than 750 million images with Bing Image Creator.”
This number will likely grow thanks to the rollout of Bing AI Chat beyond Microsoft Edge browsers and the Bing app to select users of Google Chrome and Safari.
The company remains excited about long-term opportunities as it invests in AI for search.
New AI Services And Copilots
Azure AI services revenue grew around 50%, accounting for about two percentage points of Azure’s 27% constant currency revenue growth. Demand for Azure OpenAI service continues to see strong momentum.
Speaking of AI, Microsoft highlighted several new AI products and features utilizing large language models across its stack. They include GitHub Copilot, Power BI Copilot, Copilot for Windows, and Microsoft 365 Copilot.
According to Microsoft, the feedback indicates these copilots significantly improved productivity.
The company is focused on responsible AI development and deployment. Microsoft aims to infuse AI across its cloud and applications stack to lead in the AI platform shift. It continues to invest in AI infrastructure to meet growing demand.
Microsoft Continues To Drive AI Advances
Microsoft’s growth underscores the importance of AI and cloud-based services, suggesting that this focus will continue to be a critical area for Microsoft.
With its recent launch of AI training, it remains clear that Microsoft intends to shift the way everyone works with new AI tools drastically.
The financial health of the tech giant also underlines the ongoing demand for its products and services, a crucial point of interest for professionals in search and marketing technology.
Screenshot from Google Finance, July 2023Featured image: iQoncept/Shutterstock