Microsoft Q3, 2022 Earnings analysis

Summary

• Revenue : 49.4B up 18%
• Operating income : 20.4B up 19%
• Net income : 16.7B up 8%
• EPS : $2.22 up 9%
• Microsoft Cloud 23.4B up 32%

Segment Breakdown

Productivity and Business Processes (15.8B up 17%)

• Office commercial products and cloud services up 12% 
• Office 365 revenue up 17%
•  Office consumer products and cloud services up 11% 
• Linkedin revenue up 34%
• Dynamic products and cloud services up 22% and Dynamics 365 up 35%

Intelligent Cloud (19.1B up 26%)

• Server products up 29%
• Azure up 46%

Personal Computing (14.5B up 11%)

• Windows OEM revenue increased 11%
• Windows commercial products and cloud services up 14%
• XBOX content and services revenue increased 4%
• Search advertising revenue up 23%
• Surface revenue increased 13%

Subscriptions

• Microsoft consumers subscribers up 58.4MN
• Paid office commercial seats grew 16% to 345M
• Developer SAAS
• Visual studio has more than 31M active users
• 90% of fortune 100 use github
• Azure Cloud
• Microsoft is the market leader for all SAP applications in the cloud
• The number of 100M+ azure deals more than doubled YoY
• Cosmos DB transactions and data volume grew 100% YoY for the third year in a row
• Synapse data volume more than doubled year over year
• Azure ML inference requests grew 86% YoY
• Power platform 
• 2BN in revenue in the past 12 months up 72% YoY
• Power BI has more than 200k customers
• Linkedin 
• 830M professionals
• Talent solutions up 43% marking 6 consecutive quarter of accelerating growth
• 28M subscribers to atleast 1 newsletter, up 51% YoY
• Teams
• differentiation : only solution with meetings, chat, video, collaboration and business process automation
• 1000+ collaboration apps like asana and zendesk
• Teams is a platform and companies have built custom apps on teams to bring business processes into workflows
• Viva has more than 10M MAUs
• Linkedin's glint employee engagement tool also got added to viva
• Windows
• More than 100M PCs have shipped in each of the last 8 quarters
• Windows 11 and windows 365 enabling switch between cloud and local PC
• 500M MAU of Microsoft personalized content feed - Microsoft start
• Flywheel : content consumption and commerce, microsoft edge helping people save through commerce deals
• Security
• 24 Trillion threat signals each day
• Azure active directory has 550M MAUs
• 785k customers for security solutions, grew 50% YoY
• 15k partners in security ecosystem
• Gaming
• XBox cloud gaming - 10M people have streamed games
• Azure gaming revenue fiscal grew 66% YTD