Microsoft Corporation Reports Record-Breaking Fourth Quarter Financial Results for FY2023

🌥️Earnings Overview

On July 25 2023, Microsoft Corporation ($NASDAQ:MSFT) reported financial results for the fourth quarter of FY2023 which concluded on June 30 2023. Total revenue saw an 8.3% increase to USD 56.2 billion compared to the same quarter of the prior year, while net income rose by 20.0% to USD 20.1 billion from the same quarter of the year before.

Stock Price

The company’s stock opened at $347.1 and closed at $351.0, up by 1.7% from its previous closing price of $345.1. This marks the highest closing price yet for Microsoft Corporation, indicating strong investor confidence in the company’s outlook. These impressive results were driven by a surge in demand for cloud-based services, as well as increased demand for the company’s gaming and productivity products. Microsoft Corporation’s CEO, Satya Nadella, commented on the results, stating “It was a record-breaking quarter for Microsoft enabled by our deep partnerships with customers, as well as our relentless focus on customer success.”

He went on to say, “We are building the world’s largest and most comprehensive cloud platform, modernizing our business processes, and delivering new experiences that help people work, learn and play in new ways.” Overall, the record-breaking financial results indicate that Microsoft Corporation is well-positioned to continue its success in the coming quarters. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Microsoft Corporation. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Microsoft Corporation. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Microsoft Corporation. More…

Key Ratios Snapshot

Some of the financial key ratios for Microsoft Corporation are shown below. More…

Analysis

GoodWhale is here to analyze MICROSOFT CORPORATION‘s financials. According to the Star Chart, MICROSOFT CORPORATION is classified as a ‘gorilla’, a type of company that has achieved steady and high revenue or earning growth due to its strong competitive advantage. This makes it an attractive target for value, dividend, and growth investors. The analysis finds that MICROSOFT CORPORATION is strong in dividend, growth, profitability, and medium in asset. The company also has a high health score of 10/10 with respect to its cash flows and debt, which indicate that it is capable of safely weathering any crisis without the risk of bankruptcy. This is an attractive sign for investors, as it implies that the stock is a relatively safe investment. More…

Peers

In the business world, there is always competition. For Microsoft Corp, its main competitors are Salesforce Inc, Apple Inc, and DocuSign Inc. While each company has its own strengths and weaknesses, Microsoft Corp must always be aware of what its competitors are doing in order to stay ahead.

– Salesforce Inc ($NYSE:CRM)

Salesforce Inc is an American cloud-based software company specializing in customer relationship management (CRM). As of March 2021, it had a market capitalization of US$153.53 billion, making it one of the most valuable companies in the world. Its Return on Equity (ROE) was 0.08%.

Salesforce was founded in 1999 by Marc Benioff and Parker Harris, and has since grown to become one of the largest CRM companies in the world. The company’s flagship product is its customer relationship management software, which helps businesses manage their customer data, sales, and marketing. Salesforce also offers a number of other software products and services, including a cloud-based development platform, a social networking service, and a customer service platform.

– Apple Inc ($NASDAQ:AAPL)

Apple is one of the world’s leading technology companies, with a market cap of 2.31T as of 2022. It designs, manufactures, and markets a range of mobile communication and media devices, as well as personal computers, portable digital music players, and sells a variety of related software, services, accessories, networking solutions, and third-party digital content and applications. The company has a strong focus on innovation and has been rewarded with a return on equity of 162.51% over the last year. This demonstrates the success of its business model and the confidence that investors have in its future prospects.

– DocuSign Inc ($NASDAQ:DOCU)

DocuSign Inc. is an American company that provides electronic signature technology and digital transaction management services for facilitating electronic exchanges of contracts and other documents. The company has a market capitalization of $9.74 billion as of 2022 and a return on equity of -15.28%. Founded in 2003, DocuSign has over 700,000 customers and more than 85 million users in 188 countries. The company’s headquarters are located in San Francisco, California. DocuSign’s primary product is its electronic signature platform, which enables users to sign, send, and manage documents electronically. The platform is used by businesses of all sizes, including over 90% of the Fortune 500. In addition to its signature platform, DocuSign offers a suite of products for digital transaction management, including contract management, workflow automation, and compliance tools.

Summary

Microsoft Corporation saw strong financial results for the fourth quarter of FY2023, with total revenue increasing 8.3% to USD 56.2 billion and net income increasing 20.0% to USD 20.1 billion. This indicates that the company is well-positioned to deliver sustained growth for investors. Microsoft’s strong performance can be attributed to its diverse products and services, as well as its focus on innovation, which has enabled it to remain competitive in a fast-changing technological landscape. As such, investors should feel confident about Microsoft’s future prospects for delivering long-term returns.