Microsoft’s revenue grew by 18 percent in the fiscal year of 2022. Nevertheless, the profit increase of 19 percent pales in comparison to the 38 percent rise between 2020 and 2021.
The tech giant recently presented the fourth and final quarterly figures for the fiscal year of 2022. Microsoft booked annual revenue growth of 18 percent. Sales totalled 195.5 billion euros (198.3 billion dollars).
Profits came in at roughly 70 billion dollars, a 19 percent increase from 2021. The increase pales in comparison to last year, when net income rose by 38 percent. The same trend is visible in Microsoft’s latest quarterly results, which were presented alongside the yearly report. Profits increased by a meagre 2 percent in Q4.
The tech giant explained the letdown with production delays in China, unfavourable exchange rates for the dollar, the war in Ukraine and its departure from the Russian market.
Cloud is key
Microsoft’s cloud activities were the main source of revenue in the latest quarter. The portfolio includes Microsoft 365 and Azure. Revenues reached $25 billion, more than half of the quarter’s total revenue.
Although Microsoft Teams is considered to be one the largest Microsoft Cloud components, the platform’s revenue wasn’t announced. The tech giant didn’t disclose active user numbers either.
Azure is another major part of the cloud portfolio. This segment booked a 40 percent revenue increase. The capacity issues that Azure reportedly faces clearly didn’t stop it from growing.