Microsoft Q2 2022 earnings are out

legacy24

Member
Microsoft Q2 2022 earnings

• Windows OEM revenue is up 25%
• Xbox content / services up 10%
• Gaming revenue up 8%
• Xbox hardware up 4%
• Surface up 8%

Microsoft’s Xbox Series X / S consoles have been on sale for more than a year now, and hardware revenue is up 4 percent, thanks to continued demand for these new consoles. Microsoft’s overall gaming revenue is also up by 8 percent after the company set a record $3.6 billion for the quarter in its previous Q1 2022 earnings. Xbox content and services revenue also increased 10 percent year over year.
- Best calendar year on record, beating previous high of 2021
- Total gaming revenue up 17.7% YoY
- Content & Services revenue up 8.8% YoY
- Hardware revenue up 63.3% YoY https://t.co/84MkOsnMkG

Details here: https://t.co/Fmqlf8oR8O https://t.co/S6sl09EX33
 
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Kdad

Member
4:33 PM ET: Xbox content/services revenue rose 10% Y/Y, an improvement from FQ1's 2% and slightly above guidance. Microsoft notes it was dealing with tough gaming comps, and that first-party title and Xbox Game Pass growth offset lower third-party title revenue.

Xbox hardware sales, which remain very supply-constrained, rose 4%.
 
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Concern

Member

Frustrated World Cup GIF


Well that pretty much kills that "ms has to recoup that 70b asap" narrative.
 

SenjutsuSage

Halo TV Series Promoter - Live from: Reach
That's absolutely ridiculous and seriously puts things into perspective.

I think most of it should be coming from the office subscriptions, right? Well, if it's like that then it's only logical for MS to try and use subscription model in gaming too.

Most of it comes from their Azure cloud business to my knowledge, and then it's Office and Windows I think. Azure is Microsoft's biggest business.
 

Starfield

Member
That's absolutely ridiculous and seriously puts things into perspective.

I think most of it should be coming from the office subscriptions, right? Well, if it's like that then it's only logical for MS to try and use subscription model in gaming too.
bruh they have SO MUCH MORE software than just Office lol. Microsoft Navision, Azure, and so on

they're the king of software. No, the EMPEROR
 
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Kdad

Member
Happens for virtually every company after earnings reports. Stock goes up prior to reports on speculation, short term holders sell off once the reports are out to cash in.
Well that and their 2 biggest revenue drivers didn't beat expectations....

The fact that sales for Microsoft's two most profitable reporting segments were only in-line might have something to do with the stock's initial After Hours drop. More Personal Computing, which covers Windows, gaming, Surface and Bing/ad sales, drove virtually the entire revenue beat.

-thestreet.com
 
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VAVA Mk2

Member
That's absolutely ridiculous and seriously puts things into perspective.

I think most of it should be coming from the office subscriptions, right? Well, if it's like that then it's only logical for MS to try and use subscription model in gaming too.
Most of their revenue comes from corporate licenses like Microsoft 365 and licenses for OEM hardware.
 
Considering the amount of money Microsoft started to throw around in gaming and their earning results, I expect a lot more publishers and game companies will want to work with them.
 
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GHG

Member
Happens for virtually every company after earnings reports. Stock goes up prior to reports on speculation, short term holders sell off once the reports are out to cash in.

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.
 

DenchDeckard

Gold Member
It’s more nuanced than that, they didn’t surpass expectations
im sure all the shareholders can wipe away with their tears with money once the share price settles over the next few days.

this is common and happens a lot of time earnings get announced.

GHG explains why this has happened with MS recently, they are like the worlds second largest tech company With a market cap of trillions it’s going to have larger shifts when the market doesn’t believe they should be priced as high.
 
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