WW 800: Goodbye Heart - Q1 FY23 Earnings, Q2 pessimism, Sinofsky reflects on Windows 8

Q1 FY23 Earnings, Q2 pessimism, Sinofsky reflects on Windows 8

Microsoft reported that it earned a net income of $17.1 billion on revenues of $50.1 billion, a year-over-year gain of 16 percent, in the quarter ending September 30

Intelligent Cloud up 20 percent YOY to revenues of $20.3 billion thanks to strong growth for both Azure (up 35 percent) and Server. But stock tanked due to Azure missing expected growth number and low expectations for Q2 23

Productivity and Business Processes delivered $16.5 billion in revenues, with growth of just 9 percent. Growth was driven by Office 365, with Office commercial products and cloud services seeing revenue growth of 7 percent. Office 365 commercial revenue was up 11 percent, and Office commercial products revenue fell 28 percent as Microsoft's customers continued their migration to subscription services. Office consumer was up 7 percent, with the subscriber base growing 13 percent to 61.3 million.

More Personal Computing, the home of Windows, Xbox, and Surface, saw revenues decline slightly to $13.3 billion. Windows revenues from PC makers was worse than expected, with a drop of 15 percent. Windows commercial products and clouds services revenues grew 15 percent, but declines in Windows were enough to drag down the entire business unit, with Microsoft citing "continued deteriorations in the PC market."

Xbox content and services revenues fell 3 percent YOY, though gaming revenue overall was up slightly. Xbox hardware revenue was up 13 percent.

Surface and other devices revenue was up 2 percent, but only because of HoloLens; Surface was down by double digits. Revenues had experienced double-digit growth in the prior two quarters.

GitHub hits $1 billion in ARR for the first time

Microsoft's financial outlook for Q2 and beyond isn't rosy

Other Earnings

Google hits a wall

Spotify MAUs up, profits down

Windows/Microsoft 365

Windows Subsystem for Android is getting Android 13 and more

Google to finally stop supporting Chrome on Windows 7 (and 8.1)

Microsoft shows off that coming Microsoft 365 app

Surface Duo gets Android 12L and is moving towards a Windows 11-like UX

10 years ago today, Microsoft started selling Windows 8 and Surface RT

Dev

Windows Dev Kit 2023 is now available, and it looks great

Xbox

Over 20 million people have at least tried Xbox Cloud Gaming

Age of Empires II and IV are coming to Xbox consoles in 2023

Microsoft talks up third-party Xbox controllers for smartphones, tablets

Tips and picks

Tip of the week: The simplified ribbon comes to Office, sort of

App pick of the week: Microsoft PC Manager

Enterprise pick of the week: UUP

Codename pick of the week: Surface 'Project AH'

Beer pick of the week: Nightmare Brewing Sororicide

Hosts: Leo Laporte, Mary Jo Foley, and Paul Thurrott

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