A live thread with key quotes $MSFT Q2 23 call:
1. CEO @satyanadella starts off:
"Just as we saw customers accelerate their digital spend during the pandemic, we are now seeing them optimize that spend. Also, organizations are exercising caution given the macro uncertainty"
1. CEO @satyanadella starts off:
"Just as we saw customers accelerate their digital spend during the pandemic, we are now seeing them optimize that spend. Also, organizations are exercising caution given the macro uncertainty"
2. $MSFT & AI:
CEO @satyanadella: "The age of AI is upon us & Microsoft is powering it...Azure ML revenue alone has increased more than 100% for five quarters in a row"
CEO @satyanadella: "The age of AI is upon us & Microsoft is powering it...Azure ML revenue alone has increased more than 100% for five quarters in a row"
3. $MSFT Teams hits 280M MAUs:
"Teams surpassed 280M monthly active users this quarter, showing durable momentum since the pandemic &... the number of third-party apps with more than 10,000 users increased nearly 40% YoY"
"Teams surpassed 280M monthly active users this quarter, showing durable momentum since the pandemic &... the number of third-party apps with more than 10,000 users increased nearly 40% YoY"
4. $MSFT Windows:
"While the number of PCs shipped declined during the quarter, returning to pre-pandemic levels, usage intensity of Windows continues to be higher than pre-pandemic, with time spent for PC up nearly 10%" - CEO @satyanadella
"While the number of PCs shipped declined during the quarter, returning to pre-pandemic levels, usage intensity of Windows continues to be higher than pre-pandemic, with time spent for PC up nearly 10%" - CEO @satyanadella
5. Gaming:
"We saw new highs for GamePass subscriptions, game streaming hours & monthly active devices. And monthly active users surpassed a record $120M during the pandemic" - $MSFT CEO
"We saw new highs for GamePass subscriptions, game streaming hours & monthly active devices. And monthly active users surpassed a record $120M during the pandemic" - $MSFT CEO
6. LinkedIn is still growing:
"We once again saw record engagement among our more than 900 million members. Three members are signing up every second. Over 80% of these members are from outside the United States" - $MSFT CEO
"We once again saw record engagement among our more than 900 million members. Three members are signing up every second. Over 80% of these members are from outside the United States" - $MSFT CEO
7. $MSFT Azure growth moderating:
"Azure & other cloud services revenue grew 31% & 38% in constant currency. As noted earlier, growth continued to moderate, particularly in Dec & we exited the quarter with Azure Constant Currency growth in the mid-30s"
"Azure & other cloud services revenue grew 31% & 38% in constant currency. As noted earlier, growth continued to moderate, particularly in Dec & we exited the quarter with Azure Constant Currency growth in the mid-30s"
8. $MSFT Gaming:
"we expect revenue to decline in the high single digits. We expect Xbox content &services revenue to decline in the low single digits as growth in Xbox Game Pass subs will be more than offset by lower monetization/hour in third party & first-party content"
"we expect revenue to decline in the high single digits. We expect Xbox content &services revenue to decline in the low single digits as growth in Xbox Game Pass subs will be more than offset by lower monetization/hour in third party & first-party content"
9. $MSFT guidance:
"In our commercial business, revenue grew 20% on a CC basis in H1. However, we now expect to see a deceleration in H2 given how we exited December...In H1 23, over 70% of our revenue came from our commercial business & over 70% of that from Microsoft Cloud"
"In our commercial business, revenue grew 20% on a CC basis in H1. However, we now expect to see a deceleration in H2 given how we exited December...In H1 23, over 70% of our revenue came from our commercial business & over 70% of that from Microsoft Cloud"
10. $MSFT CEO clarifies on customer spend:
"We can tell you what we see. What we see is optimization & some cautious approach to new workloads and that will cycle through. But we do fundamentally believe on a long-term basis as a percentage of GDP tech spend is going up"
"We can tell you what we see. What we see is optimization & some cautious approach to new workloads and that will cycle through. But we do fundamentally believe on a long-term basis as a percentage of GDP tech spend is going up"
11. $MSFT CFO with more color:
"Let me talk a little bit about per user...we had very high renewal rates and very good suite performance at renewal...while we had some more challenges on maybe a standalone sale of a new product, where the cycle's going to be a little longer"
"Let me talk a little bit about per user...we had very high renewal rates and very good suite performance at renewal...while we had some more challenges on maybe a standalone sale of a new product, where the cycle's going to be a little longer"
12. A very good summary from @satyanadella on the impact AI will have:
"So I think over time, obviously, I think every app is going to be an AI app. That's, I think, the best way to think about this transformation"
"So I think over time, obviously, I think every app is going to be an AI app. That's, I think, the best way to think about this transformation"
13/13. Those are all the quotes we had from today's $MSFT call.
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