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Third Quarter of the 2023 Fiscal Year: Microsoft is
performing Very
Well despite Headwinds

The tense economic situation is leaving its mark. Budgets for IT and business transformation are under pressure. As a result, IT suppliers are facing slower growth rates. Microsoft recently announced the results for the third quarter of its 2023 fiscal year. The figures are very good - despite the headwinds. They exceed analysts’ estimates in terms of both revenue and profit.

Microsoft’s Financial Results in FY23 Q3: Better than Analysts’ Expectations

Are you in the process of deciding on a new ERP solution or cloud migration? If so, it is very important that you get a good picture of the long-term financial performance of your potential ERP suppliers. After all, you’re not just buying the solution for a few months! Microsoft’s financial results for the third quarter of 2023 exceeded analysts’ general expectations in many respects.

  • Earnings were $2.45 per share, compared to analysts’ expectations of $2.23 per share.

  • Revenue from Azure and other cloud services increased by 27%.

  • Revenue in Productivity and Business Processes, including Dynamics 365, LinkedIn, and Microsoft 365 (Office), grew by 11%.

  • Revenue from Dynamics products and cloud services increased by 17% - driven by 25% revenue growth in Dynamics 365 (cloud).

  • The market appreciates these results. This is reflected in the share price: Microsoft shares have risen by 15% so far this calendar year.

Impressive Data regarding Microsoft’s Customers

When announcing its quarterly figures, Microsoft also released data on customer numbers in the rapidly growing AI sector:

  • Microsoft has more than 15,000 Azure Arc customers - up over 150% year-over-year.

  • More than 36,000 companies have used “existing AI-powered capabilities in Power Platform.”

  • There are 33 million monthly active users of Power Platform - that’s almost 50% more than last year.

  • Microsoft has more than 2,500 Azure OpenAI Service customers - a 10-fold increase compared to the previous quarter!

Microsoft is Optimistic

Continued Growth of Dynamics 365 points to Medium to High Revenue Growth

Microsoft described the quarterly results for Dynamics 365 as “healthy growth across all workloads,” with Dynamics revenue growing by 17% overall and Dynamics 365 growing by 25%. The company forecasts Dynamics revenue growth “in the mid to high-teens” for the next few quarters, driven by continued growth of Dynamics 365.

AI and Microsoft Cloud enable a New Era of Data Processing

Satya Nadella, Chairman and CEO of Microsoft, expressed confidence in these results. “The world’s most advanced AI models are coming together with the world’s most universal user interface - natural language - to create a new era of computing,” he said. “Across the Microsoft Cloud, we are the platform of choice to help customers get the most value out of their digital spend and innovate for this next generation of AI.”

Microsoft is a Financially Sound ERP Supplier

The figures show that if you are looking for an innovative and financially sound supplier for ERP and digital technologies, you should definitely consider Microsoft.

Microsoft faces Headwinds
Microsoft defies the headwinds with very good figures.