Microsoft presents quarterly report: Big plus for Xbox and cloud products

Microsoft presented its figures for the third quarter of 2024 on Wednesday. Compared to the previous year, all trends are pointing upwards. The Group was able to make huge profits in the gaming and cloud sectors in particular. Microsoft also wants to continue to follow the trend of tech companies increasingly focusing on AI products.

Microsoft generated a total turnover of 65.6 billion US dollars in the third quarter, which corresponds to an increase of 16% compared to the same period in the previous year. The Group published the figures in a press release. Gross profit amounted to 30.6 billion US dollars (14 percent more than in the previous year); after deductions, this leaves 24.7 billion US dollars, which is eleven percent more than in the previous year. Diluted earnings per share amounted to 3.30 US dollars per share (ten percent more than in the previous year).

61 percent sales growth for Xbox products

Microsoft recorded the greatest growth in the gaming sector: sales of Xbox content and service products climbed by 61 percent, with a net effect of 53 points due to the acquisition of video game manufacturer Activision Blizzard. The manufacturer does not report absolute figures for the Xbox division, which falls under the "More Personal Computing" category, which also includes the "Windows OEM and devices" division in addition to Xbox products. In total, sales here amounted to 13.2 billion US dollars, an increase of 17 percent. The increase in sales for "Windows OEM and devices" amounted to two percent.

There was also a particular increase in sales in the area of intelligent cloud products, where Microsoft achieved sales of 24.1 billion US dollars, an increase of 20 percent compared to the previous year. In the "Server products and cloud services" segment, sales rose by 23 percent, which according to Microsoft is primarily due to Azure and other cloud services –, where the Group reported a separate increase in sales of 33 percent.

Microsoft CEO emphasizes AI plans

Microsoft CEO Satya Nadella wants to continue to focus on the AI sector. Nadella emphasized in the press release that the transformation brought about by AI is now changing tasks, work tools and workflows in all roles, functions and business processes. Microsoft is therefore expanding its capabilities and gaining new customers by helping them to use its own AI platforms and tools to achieve new growth and operational benefits.

Microsoft is not alone in its AI course. The Meta Group is also driving a massive AI offensive and, after a quarter with enormous advertising revenue, has invested in new AI projects.

(nen)