- Microsoft announced that GitHub has reached over 90 million active users and an annual recurring revenue of $1 billion.
- This quarter Microsoft Cloud revenue was $25.7 billion, up 24% (up 31% in constant currency) year-over-year.
- Microsoft returned $9.7 billion to shareholders in the form of share repurchases and dividends in the first quarter of the fiscal year 2023, a decrease of 11% year-over-year.
Microsoft announced its financial results for the first quarter of FY23. According to the report the popular code repository service, GitHub, which is acquired by Microsoft in 2018 for $7.5 billion, reached more than 90 million active users. The platform had 28 million users when it was acquired by Microsoft and 73 million when Thomas Dohmke replaced Nat Friedman in November of 2021. According to the report, GitHub now has an annual recurring revenue of $1 billion, up from $200-$300 million when it was acquired.
Strong cloud results
The report also shows that Microsoft Cloud revenue was $25.7 billion, up 24% (up 31% in constant currency) year-over-year. Some of the following results for the quarter that ended September 30, 2022, as compared to the corresponding period of the last fiscal year:
- Revenue was $50.1 billion and increased 11% (up 16% in constant currency)
- Operating income was $21.5 billion and increased 6% (up 15% in constant currency)
- Net income was $17.6 billion and decreased 14% (down 8% in constant currency)
- Diluted earnings per share was $2.35 and decreased 13% (down 7% in constant currency)
Revenue in Productivity and Business Processes was $16.5 billion and increased 9% (up 15% in constant currency), with the following business highlights:
- Office Commercial products and cloud services revenue increased by 7% (up 13% in constant currency) driven by Office 365 Commercial revenue growth of 11% (up 17% in constant currency)
- Office Consumer products and cloud services revenue increased by 7% (up 11% in constant currency) and Microsoft 365 Consumer subscribers grew to 61.3 million
- LinkedIn revenue increased 17% (up 21% in constant currency)
- Dynamics products and cloud services revenue increased by 15% (up 22% in constant currency) driven by Dynamics 365 revenue growth of 24% (up 32% in constant currency)
Revenue in Intelligent Cloud was $20.3 billion and increased 20% (up 26% in constant currency), with the following business highlights:
- Server products and cloud services revenue increased by 22% (up 28% in constant currency) driven by Azure and other cloud services revenue growth of 35% (up 42% in constant currency)
Revenue in More Personal Computing was $13.3 billion and decreased slightly (up 3% in constant currency), with the following business highlights:
- Windows OEM revenue decreased by 15%
- Windows Commercial products and cloud services revenue increased by 8% (up 15% in constant currency)
- Xbox content and services revenue decreased by 3% (up 1% in constant currency)
- Search and news advertising revenue excluding traffic acquisition costs increased by 16% (up 21% in constant currency)
- Devices revenue increased by 2% (up 8% in constant currency)
Satya Nadella, chairman and chief executive officer of Microsoft said,
« In a world facing increasing headwinds, digital technology is the ultimate tailwind. In this environment, we’re focused on helping our customers do more with less, while investing in secular growth areas and managing our cost structure in a disciplined way. »