MSFT CY2022 Q4 Results are in

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Horatio

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  • #1
    FY23 Q2 - Press Releases - Investor Relations - Microsoft
    So this looks pretty rough to my eye, yet what do I know, as Wall Street seems to love it.
    Microsoft Stock Leaps After Topping Earnings Forecast On Cloud Gains - TheStreet

    Everything was up revenue wise, except for More Personal Computing, which was down 19(!)%, and profit was down overall by 12%, still, they hauled in $17B of profit in the quarter, so that's not bad.

    The weakness in the consumer sector is somewhat worrying, as it was Q4, typically a consumer focused quarter, and was weak across the board (except Bing, which somehow grew a bunch). Also, now with the layoffs, and hearing that it hit a the gaming groups (343i, Bethesda), I think the next Q will be interesting in the consumer space. Maybe it'll be a reset, or maybe consumer sentiment from Q4 is a harbinger of tougher economic times to come.
     
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    Chris FOM

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  • #2
    How is Xbox revenue down double digits across the board (hardware AND software/services) in this market when they’re still selling every XBSX they can make? That plus admitting late last year the GamePass subscriptions have leveled off is worrying, especially this early in the generation. I mean, they’re competing against a Switch that’s approaching its sixth birthday and a PS5 that’s still hard to find in stock.
     
    MKG

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  • #3
    The stock has lost around 3.5% today. Although the profits are good (real good) there's significant headwinds coming and this is what, IMHO, folks fear. Azure's growth is all fine and well until the costs start strangling customer's burn rates - this is for all public cloud providers not just Microsoft - and there is recoil in the market already.

    If I were a shareholder I would probably not be happy with the whole "we are dumping 10 billion more into OpenAI" either.
     
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    md5crypto

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  • #6
    MKG said:
    The stock has lost around 3.5% today. Although the profits are good (real good) there's significant headwinds coming and this is what, IMHO, folks fear. Azure's growth is all fine and well until the costs start strangling customer's burn rates - this is for all public cloud providers not just Microsoft - and there is recoil in the market already.

    If I were a shareholder I would probably not be happy with the whole "we are dumping 10 billion more into OpenAI" either.
    Click to expand...
    As a shareholder, I'd be thrilled at the $10 billion into OpenAI. Especially since I see AI as being the next $1 trillion business, the next iPhone.

    Also this will not only supercharge Bing, but allow Microsoft to finally compete against Alexa. Wouldn't be shocked to see Microsoft-branded smart speakers coming in 2025. Also don't be surprised if it's powering Microsoft-in-the-car as well.
     
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    YoHo

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  • #7
    md5crypto said:
    As a shareholder, I'd be thrilled at the $10 billion into OpenAI. Especially since I see AI as being the next $1 trillion business, the next iPhone.

    Also this will not only supercharge Bing, but allow Microsoft to finally compete against Alexa. Wouldn't be shocked to see Microsoft-branded smart speakers coming in 2025. Also don't be surprised if it's powering Microsoft-in-the-car as well.
    Click to expand...
    So you expect them to revive 2 product lines they had and let die?
     
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    md5crypto

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  • #10
    Sure and rebrand away from Bing which is another toxic brand to consumers. Just call it Microsoft Search. What I'm amazed by is Microsoft name itself isn't considered toxic to consumers but 50 sub-brands they've created over the years are. F.e, Zune, Windows Phone, Bing, Clippy and so on.

    Anyone know what % of their revenues are from traditional Windows client/server licensing?
     
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    Echohead2

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  • #11
    md5crypto said:
    Sure and rebrand away from Bing which is another toxic brand to consumers. Just call it Microsoft Search. What I'm amazed by is Microsoft name itself isn't considered toxic to consumers but 50 sub-brands they've created over the years are. F.e, Zune, Windows Phone, Bing, Clippy and so on.

    Anyone know what % of their revenues are from traditional Windows client/server licensing?
    Click to expand...
    I'm not sure Bing is as toxic as you think it is.
     
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    md5crypto

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  • #12
    Echohead2 said:
    I'm not sure Bing is as toxic as you think it is.
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    3% global market share across all devices kind of indicates it is. Probably comes from it being the default search engine on Windows computers. I bet almost nobody seeks out www.bing.com. I personally wouldn't mind switching over but I'm firmly in the Google-verse and there are tons of features missing from Bing. F.e., Bing has no reviews for stores, restaurants. They only link to Trip Advisor.
     
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  • #13
    Bing had potential and still does. Now if MSFT can only get out of their own way and, you know, take little steps like remove the garbage AI so it doesn’t openly threaten people or heavens forbid built real guardrails around an open LLM (which we all know is close to impossible)… then they might stand a chance. But that would require a semblance on non-sales targeted science and MSFT (along with all others), have zero interest in un-fucking what they’ve done with GPT.
     
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    md5crypto

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  • #15
    YoHo said:
    I actively choose bing for image search if I'm thinking about it.
    I don't trust Google reviews of anything It's missed too often. So I still use yelp.


    I still miss Here Maps. Google maps is the best easily available Maps app and that's damming with the faintest praise.
    Click to expand...
    The thing is there is still many compelling Google services that keep people sticky to the account. Maps, Keep, Photos are off the top of my head.
     
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  • #16
    Google photos just reminds me of their previous better product Picasa.

    Honestly the only Google product I actively use without begrudging it is Gmail and I don't even love that. I use drive a lot because I need to, but Onedrive is better in every way I care about. I've recently been doing a lot in Google Sheets and it actively makes me rage. The simplest things to do in Excel just aren't intuitive or don't work.

    Google search is fine. I actually have been disappointed in search results broadly over the last few years.
     
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    ant1pathy

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  • #17
    md5crypto said:
    The thing is there is still many compelling Google services that keep people sticky to the account. Maps, Keep, Photos are off the top of my head.
    Click to expand...
    Gmail for sure, maybe Drive. If you have an Android phone, Photos probably. Keep? Almost certainly not (it's not a particularly good notes app). Maps? Definitely not, there's no account needed for that. Their Office suite would probably slot in between Gmail and Drive, or just after Drive, but ahead of Photos. The rest? Rounding errors.
     
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    wrylachlan

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  • #18
    md5crypto said:
    3% global market share across all devices kind of indicates it is.
    Click to expand...
    Nah. Not enough people even know what the fuck Bing is for its brand to be toxic. For most people Bing as ChatGPT front end will be their first encounter with Bing. Or at least their first purposeful encounter - my work laptop defaults to Bing and I didn’t realize it for months… 🤷 I guess I’m just not that invested in The Search Wars.
     
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    md5crypto

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  • #19
    ant1pathy said:
    Gmail for sure, maybe Drive. If you have an Android phone, Photos probably. Keep? Almost certainly not (it's not a particularly good notes app). Maps? Definitely not, there's no account needed for that. Their Office suite would probably slot in between Gmail and Drive, or just after Drive, but ahead of Photos. The rest? Rounding errors.
    Click to expand...
    Yeah but if you want Maps to remember your history of locations and to add locations for future use, you need a Google account.
     
    Nevarre

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  • #21
    ant1pathy said:
    What percentage of general users do you think use these features
    Click to expand...

    Approaching 100% of AndroidAuto users, an extremely high degree of Android users in general, plus all the Apple users who use Google Maps for nav as a standalone device or in CarPlay (obvy some % of Apple users use Apple Maps or some other option.)
     
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    ant1pathy

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  • #23
    Nevarre said:
    Approaching 100% of AndroidAuto users, an extremely high degree of Android users in general, plus all the Apple users who use Google Maps for nav as a standalone device or in CarPlay (obvy some % of Apple users use Apple Maps or some other option.)
    Click to expand...
    Specifically use the "save addresses as part of your Google account" and "pre-plan routes with stops"? I'm not counting addresses for people in your contacts (home, work, parents, etc), but rather deliberate "I'm saving this address to my Maps account" actions.
     
    Nevarre

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  • #24
    It's all blended so as far as I understand if you give Google Assistant access to AndroidAuto data (which is typical) it then starts learning your map habits and storing that-- possibly adjunct to Maps proper -- but certainly associated with your Google Assistant account and feeding that back into maps. You're going to be logged in to your Google account to use AA, and it'll make historical guesses and also suggest mapping data based on Google search, Maps search outside of AA, etc.

    I don't ever really store address data within maps explicitly but it still learns specific locations. I do definitely store routes with stops intentionally prior to complicated trips.

    I don't store addresses with contacts at all, certainly not intentionally. It's possible that someone's contact card might pre-populate address data but that's not ever something I'd intentionally store.
     
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    md5crypto

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  • #25
    ant1pathy said:
    What percentage of general users do you think use these features?
    Click to expand...
    I'm sure near 100% as all that address persistence is very useful. Sometimes due to the integration of Google Calendar with Google Maps, when you're near an appointment time it'll suggest that location when you hit the search box. Very useful.
     
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    YoHo

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  • #26
    Nevarre said:
    It's all blended so as far as I understand if you give Google Assistant access to AndroidAuto data (which is typical) it then starts learning your map habits and storing that-- possibly adjunct to Maps proper -- but certainly associated with your Google Assistant account and feeding that back into maps. You're going to be logged in to your Google account to use AA, and it'll make historical guesses and also suggest mapping data based on Google search, Maps search outside of AA, etc.

    I don't ever really store address data within maps explicitly but it still learns specific locations. I do definitely store routes with stops intentionally prior to complicated trips.

    I don't store addresses with contacts at all, certainly not intentionally. It's possible that someone's contact card might pre-populate address data but that's not ever something I'd intentionally store.
    Click to expand...
    This is absolutely correct. I don't intentionally store anything. The Google Assistant remembers and makes assumptions. For instance, every time I connect the phone it pops up the most recent places I've been and some of my regular routes. Which is super helpful, not because I need the map per se, but because it gives me the time to destination and I can click on it and find out which route it thinks is fastest. So I never actually use the navigation, just use this always on feature.

    It's one of those things I didn't even realize I wanted, but now, I'd shank you if you tried to take it away from me.
     
    Nevarre

    Nevarre

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  • #27
    Yep, and it's context sensitive as well based on the location you're starting from and time of day -- if I typically stop at the grocery store on the way home from work on a Wednesday, it'll suggest that mapping route if my start location is near work and it's a Wednesday afternoon/evening but it won't suggest it if it knows I'm on vacation away from my typical route.
     
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