MSFT Q2/2023 Earnings Release

The layoffs make sense now, at this rate Microsoft only makes a yearly profit enough to buy a tiny country.

Oh my god they wrote that document in an older version of Word (I guess?) and transferred it into a website. The source code of this document is god awful. I know nobody cares, but as a website maker dude I do - and this is hurting.<p>Have a nice screenie of a piece of the source: <a href="https:&#x2F;&#x2F;jasper.monster&#x2F;sharex&#x2F;firefox_fQy122RwpB.png" rel="nofollow">https:&#x2F;&#x2F;jasper.monster&#x2F;sharex&#x2F;firefox_fQy122RwpB.png</a>

&gt; The company took a $1.2 billion charge in the quarter in connection with its decision to cut 10,000 jobs, revise its hardware lineup and consolidate leases. The charge includes $800 million in employee severance costs.<p>How long does it take to recoup $800m in severance from 10k employees?

Surprised they didn&#x27;t split out the concert with Sting that Satya had promptly before laying off 10k people.

xbox hw&#x2F;gaming: -13%<p>This one is the most embarrassing of all, i wonder how different that would have been if they had a handheld instead of 2 console with 2 different performance profile, that seems redundant<p>When you look at Nintendo, it&#x27;s night and day the amount of console they are about to sell, more than both Sony&#x2F;MS combined each quarter

&gt;Windows OEM revenue decreased 39%<p>If Windows OEM had a 1:1 direct relationship with Windows PC shipment, that is a ~40% decline. I am assuming this is Q2 YoY.<p>If we look back at Earnings Release FY22 Q2 [1], Windows OEM revenue increased 25%. So while FY22 Q2 growth was an outliner and hard to sustain, the 40% decline is still very bad.<p>This also explains a lot of of pressure and negative talk from PC components OEMs like DRAM and SSD, to vendors like Dell and HP. It will be even worst if Smartphone sales dont pick up some of the spill overs. We are looking at another possibility of DRAM and NAND trading at negative COGS.<p>We should have a better understanding of the market once Apple publish their Data in a few more days.<p>[1] <a href="https:&#x2F;&#x2F;www.microsoft.com&#x2F;en-us&#x2F;Investor&#x2F;earnings&#x2F;FY-2022-Q2&#x2F;press-release-webcast" rel="nofollow">https:&#x2F;&#x2F;www.microsoft.com&#x2F;en-us&#x2F;Investor&#x2F;earnings&#x2F;FY-2022-Q2...</a>

In another thread recently I was wondering if Microsoft are the most diversified of the current big players. What do you reckon?

one thing I applaud MS for, even though I hate the OS they forced on the world:<p>being able to grow revenues from acquired companies.

Windows OEM revenue decreased 39%<p>Ouch

Up 4% after hours.<p>edit: well that didn’t last

<p><pre><code> Revenue was $52.7 billion and increased 2% Operating income was $20.4 billion GAAP and $21.6 billion non-GAAP, and decreased 8% and 3%, respectively Net income was $16.4 billion GAAP and $17.4 billion non-GAAP, and decreased 12% and 7%, respectively Diluted earnings per share was $2.20 GAAP and $2.32 non-GAAP, and decreased 11% and 6%, respectively</code></pre>