Background of Microsoft's strong performance
Microsoft showed growth in all divisions in its financial results for the fiscal year ending January to March 2024, and the results were strong, exceeding market expectations.
◽️ Performance Overview
Sales: $61.86 billion, up 17% year over year (forecast: $60.804 billion)
Adjusted EPS: $2.94, up 20% year over year (forecast: $2.82)
◽️ Performance by segment
・Azure: Net sales of 35.1 billion dollars (up 31% from the same period last year)
・Productivity & Business Processes: Sales of 16.8 billion dollars (up 14% from the same period last year)
・More Personal Computing: Net sales of 10 billion dollars (10% increase from the same period last year)
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◽️ Detailed analysis by segment
・Azure
AI investment paid off, and with strong growth of 31%, what is remarkable is the strong growth of Azure.
Sales reached 35.1 billion dollars, up 31% from the same period last year, which greatly exceeded market expectations. This was due to a 7 percentage point increase in the contribution of AI-related services.
Specifically, the use of Azure in AI projects is expanding, such as calling AI models and using vector databases.
Analysts are forecasting an annual growth rate of 29-30% over the next 2 years and a sales revenue path of 95 trillion yen.
・Productivity & Business Processes
In particular, subscription businesses such as Office 365 and Dynamics 365 continued to grow strongly, and sales reached 16.8 billion dollars, up 14% from the same period last year.
As companies advance digitalization, it is expected that the subscription business will continue to grow in the future.
・More Personal Computing
Sales of Windows, Surface devices, and Xbox game consoles grew steadily, reaching $10 billion, up 10% from the same period last year.
Surface devices, in particular, recorded their highest quarterly sales ever.
This shows Microsoft's increased competitiveness in the high-end laptop market.
◽️ Future highlights
① Further growth of Azure
Azure's growth rate is expected to remain high in the future.
In addition to the effects of AI investments, there is a possibility that growth will be boosted by promoting multi-cloud strategies and developing new solutions
② Expansion of subscription-based businesses
Further expansion of the subscription type business is expected due to the expansion of the customer base of Office 365, Dynamics 365, etc., and the introduction of new subscription services.
③ Expansion into global markets
Microsoft is also focusing on expanding its business in emerging markets.
Looking ahead, sales growth rates in emerging markets will be in the spotlight.
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