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Microsoft Q2 2022 earnings are out

The 8% growth of the gaming division compared to what? I assume compared to the same quarter of the previous year (Q2 FY2021), but do we know how much revenue made the division in this quarter?
Probably Q1.

Apart from it didn't go up prior in this case, the stock has been on a slide since the end of December.

IBM went up after earnings yesterday as did American Express. Texas Instruments also went up after reporting today.

Hedge funds use earnings as an opportunity to "reset" the stock price to be more in line with current and future valuation expectations. In this case (Microsoft's) the future expectation is soft due to the fact that we are in an inflationary environment and for whatever reason they don't think the business justifies the market cap it had at close today, hence the drop.

It's probably "soft" in the scope of the recent intent of purchase they've declared with the Activision-Blizzard acquisition. If net income stays steady for the year it'd take them the year to make back a bit more than the cost they've pledged to the AB buyout. The buyout being in relation to a gaming publisher might also factor into it; notice the three companies you listed with an uptick in stocks both haven't made a legally-binding declaration of intent to a massive acquisition (to my knowledge) recently, and certainly not in relation to a games publisher?

Altho throwing American Express into the mix is kind of odd; they're a very different business from IBM, TI and MS.
 
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IntentionalPun

Ask me about my wife's perfect butthole
The 8% growth of the gaming division compared to what? I assume compared to the same quarter of the previous year (Q2 FY2021), but do we know how much revenue made the division in this quarter?
It's almost always YOY like you suggest here, since seasonally you expect different results per quarter of a given year.
 

yurinka

Member
It's almost always YOY like you suggest here, since seasonally you expect different results per quarter of a given year.
Probably Q1.

I think I found what I was looking for: their gaming revenue for Q2 FY202, this recently announced quarter. Seems to be ~$5.43B.

According to this Twitter account that someone posted in retardera a 8% increase means ~ $5.43B:
 
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GHG

Member
im sure all the shareholders can wipe away with their tears with money once the share price settles over the next few days.

this literally happens every time earnings get announced.

Jesus christ, no it doesn't.

Probably Q1.



It's probably "soft" in the scope of the recent intent of purchase they've declared with the Activision-Blizzard acquisition. If net income stays steady for the year it'd take them the year to make back a bit more than the cost they've pledged to the AB buyout. The buyout being in relation to a gaming publisher might also factor into it; notice the three companies you listed with an uptick in stocks both haven't made a legally-binding declaration of intent to a massive acquisition (to my knowledge) recently, and certainly not in relation to a games publisher?

Altho throwing American Express into the mix is kind of odd; they're a very different business from IBM, TI and MS.

AMEX was thrown in as a recent example of a company that went up following the announcement of earnings. I didn't limit it to tech because I was replying to a blanket statement.

But yes, the outlay involved in the acquisition will also be factored in.

Edit:


Yahoo finance are attributing the drop to slowing growth in cloud:

 
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DenchDeckard

Gold Member
Jesus christ, no it doesn't.



AMEX was thrown in as a recent example of a company that went up following the announcement of earnings. I didn't limit it to tech because I was replying to a blanket statement.

But yes, the outlay involved in the acquisition will also be factored in.

Edit:


Yahoo finance are attributing the drop to slowing growth in cloud:


i think it’s more to do with expected inflation over the coming years, if you look into it. I heard someone say that anyway.

MS is so large, even though they beat targets and over performed there is a high expectation that inflation will affect their growth over the coming years which contributed to the slide.

I do see a lot of companies shares slide after earning reports but maybe it’s been a while. Will be interesting to see how the others perform. I’m sure Sonys could see positive growth after the nasty slide from the ACTI/blizzard ms announcement.

let’s see what happens over the coming weeks.
 

MikeM

Member
Good for them. I’m slowly sinking further into their ecosystem. Just bought a bunch of back compat games through their sale that are also Fps boosted.
 

StreetsofBeige

Gold Member
Net Income $18.8 billion. Keeps going up. Prorated going forward, MS can pay off the entire Activision with profits over a year.


Microsoft Cloud Strength Fuels Second Quarter Results

REDMOND, Wash. — January 25, 2022 — Microsoft Corp. today announced the following results for the quarter ended December 31, 2021, as compared to the corresponding period of last fiscal year:

· Revenue was $51.7 billion and increased 20%

· Operating income was $22.2 billion and increased 24%

· Net income was $18.8 billion and increased 21%

· Diluted earnings per share was $2.48 and increased 22%

“Digital technology is the most malleable resource at the world’s disposal to overcome constraints and reimagine everyday work and life,” said Satya Nadella, chairman and chief executive officer of Microsoft. “As tech as a percentage of global GDP continues to increase, we are innovating and investing across diverse and growing markets, with a common underlying technology stack and an operating model that reinforces a common strategy, culture, and sense of purpose.”

“Solid commercial execution, represented by strong bookings growth driven by long-term Azure commitments, increased Microsoft Cloud revenue to $22.1 billion, up 32% year over year” said Amy Hood, executive vice president and chief financial officer of Microsoft.

Business Highlights

Revenue in Productivity and Business Processes was $15.9 billion and increased 19%, with the following business highlights:

· Office Commercial products and cloud services revenue increased 14% driven by Office 365 Commercial revenue growth of 19%

· Office Consumer products and cloud services revenue increased 15% and Microsoft 365 Consumer subscribers grew to 56.4 million

· LinkedIn revenue increased 37% (up 36% in constant currency)

· Dynamics products and cloud services revenue increased 29% driven by Dynamics 365 revenue growth of 45% (up 44% in constant currency)

Revenue in Intelligent Cloud was $18.3 billion and increased 26%, with the following business highlights:

· Server products and cloud services revenue increased 29% driven by Azure and other cloud services revenue growth of 46%

Revenue in More Personal Computing was $17.5 billion and increased 15%, with the following business highlights:

· Windows OEM revenue increased 25%

· Windows Commercial products and cloud services revenue increased 13% (up 14% in constant currency)

· Xbox content and services revenue increased 10%

· Search and news advertising revenue excluding traffic acquisition costs increased 32%

· Surface revenue increased 8%

Microsoft returned $10.9 billion to shareholders in the form of share repurchases and dividends in the second quarter of fiscal year 2022, an increase of 9% compared to the second quarter of fiscal year 2021.
 
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Jesus christ, no it doesn't.



AMEX was thrown in as a recent example of a company that went up following the announcement of earnings. I didn't limit it to tech because I was replying to a blanket statement.

But yes, the outlay involved in the acquisition will also be factored in.

Edit:


Yahoo finance are attributing the drop to slowing growth in cloud:


Hmm, that's interesting. Could be a factor motivating this Metaverse stuff, it'd incentivize new growth for cloud services and technologies. Even without that though there are other markets emerging where there'll likely be growth opportunities for cloud.

A slowdown though, whatever size it is, is expected; every market segment has its normalized size (like console gaming).

I think I found what I was looking for: their gaming revenue for Q2 FY202, this recently announced quarter. Seems to be ~$5.43B.

According to this Twitter account that someone posted in retardera a 8% increase means ~ $5.43B:

Appreciated. Seems pretty good indeed; interested what figures Sony and Nintendo will have once those go out ( R reksveks the reposts on those are appreciated in advance 👍).

retardera

lol
 

Kdad

Member
Earnings call comment:
5:52 PM ET: Nadella reiterates that Game Pass now has more than 25M subs. Declares Activision will help consumers game wherever/however they want and help shape the future of gaming.

6:02 PM ET: Hood notes Xbox hardware revenue (+4% Y/Y) benefited from better-than-expected supply.

6:10 PM ET: The Q&A session is starting. Microsoft's stock is now up 0.6% After Hours
 
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The_Mike

Member
Still ain't boxed sales though.

Halo Infinite online is free, I contributed to that (did buy the battle pass though so they did get my money)

Forza is day one on game pass. Its still at least 18.000.000 x 10 euro
 

tusharngf

Member
So next year they can buy Sega take two plus ea for pizza money 💰💰. Microsoft basically owns office and windows market with no direct competitor. Now they want cloud and gaming space as well. Nadella knows that subscription model is beneficial for long term.
 

IntentionalPun

Ask me about my wife's perfect butthole
I'm an MS investor, not a Xbox player...isn't this a little disingenuous when you're not paying full fat to play the game?
MS's story about gaming is engagement; you put 1st party games day one on a sub service that has 25 million folks your sales are going to take a huge hit.

Halo Infinite still charted though.
 

ZehDon

Member
Apart from it didn't go up prior in this case, the stock has been on a slide since the end of December.

IBM went up after earnings yesterday as did American Express. Texas Instruments also went up after reporting today.

Hedge funds use earnings as an opportunity to "reset" the stock price to be more in line with current and future valuation expectations. In this case (Microsoft's) the future expectation is soft due to the fact that we are in an inflationary environment and for whatever reason they don't think the business justifies the market cap it had at close today, hence the drop.
IBM and Texas Instruments both beat expectations, Microsoft's core only met their expectations. MSFT was close to matching a yearly high at the end of December, and quarterly earnings are now in. Now is a pretty OK time to sell, which is why I suspect we're seeing folks sell. And once the price comes back down, it'll be the right time to buy in. I'm pretty sure you know this happens a lot.
 

reksveks

Member


Stupid market
 

chonga

Member
I'm an MS investor, not a Xbox player...isn't this a little disingenuous when you're not paying full fat to play the game?
Welcome to the world of subscription metrics where you are given meaningless data.

Much like how Netflix counts a 'view' as someone viewing just two minutes of something. Two fucking minutes. Shit the intro to a TV show eats up half of that let along all the logos and bollocks before a film.

So the same will apply here, get used to getting numbers of players which could easily be someone who thought 'this is free, I'll check it out' played it for 5 seconds thought it was shit and then deleted it.
 

Kdad

Member
Welcome to the world of subscription metrics where you are given meaningless data.

Much like how Netflix counts a 'view' as someone viewing just two minutes of something. Two fucking minutes. Shit the intro to a TV show eats up half of that let along all the logos and bollocks before a film.

So the same will apply here, get used to getting numbers of players which could easily be someone who thought 'this is free, I'll check it out' played it for 5 seconds thought it was shit and then deleted it.
Yeah, all i want to know it subs to GP and monthly churn and who is paying non-teaser rates.
 

Kdad

Member
6:12 PM ET: First question is about the demand environment, and how durable Microsoft sees it for the whole of 2022.

Nadella: We see pretty strong demand signals from businesses. Productivity improvements can keep costs down in an inflationary environment. We're also seeing demand strength in gaming. The economics of gaming franchises is becoming more software-like.

6:18 PM ET: A question about Microsoft's "metaverse" efforts.

Nadella: We see this as an opportunity both at the platform infrastructure and application levels. The increasing digitization of places/things is an opportunity. Teams will have immersive meetings, first 2D but eventually VR-based as well. Gaming naturally has strong metaverse connections. I think the next wave of the Internet will be a more open world.
Hood: Our investments in this space will go to individual products/teams that can figure out how to best address the opportunity.
 
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BennyBlanco

aka IMurRIVAL69
I thought they killed the Surface years ago tbh. I don’t think I’ve ever seen one in the wild. Sheesh…. That revenue though. It’s an unfathomable amount of money.
 

LordOfChaos

Member
Another one out of the park under Nadella. Will be a core part of my portfolio for a long time.

I found it interesting that he personally highlighted that Halo number. In the Xbox One generation he was talking about how they had to make hard decisions about unprofitable divisions. Quite a turnaround for Xbox.
 
I'm an MS investor, not a Xbox player...isn't this a little disingenuous when you're not paying full fat to play the game?
You're not an investor. It's all about growth and subscription services on Xbox and Windows.

If you're an investor, you're a rookie investor..
 
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Kdad

Member
You're not an investor. It's all about growth and subscription services on Xbox and Windows.

If you're an investor, you're a rookie you're investor..
Lol...ok bud. I'm well aware of where MS is going...i'm simply stating from a 'gamer' perspective that their halo/forza quote is disingenuous. Relax.
 

Beechos

Member
I thought they killed the Surface years ago tbh. I don’t think I’ve ever seen one in the wild. Sheesh…. That revenue though. It’s an unfathomable amount of money.
The surface has actually found its niche. Alot of students and work professions use it due its form factor and flexibility. My son has one for school and wife uses it for work for its portability.
 
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