Microsoft Corp. has shared its financial results for the first quarter of 2024, showcasing the company's growing focus on artificial intelligence (AI) services. For the quarter ending September 30, 2024, Microsoft announced a revenue of $65.6 billion, representing a significant 16% rise compared to the same timeframe last year.
Financial Performance
The tech leader's operating income hit $30.6 billion, showing a 14% increase, while net income climbed to $24.7 billion, which is an 11% growth. A major factor in this success was Microsoft Cloud, which experienced a revenue boost of 22%, bringing in $38.9 billion for the quarter. In particular, the Intelligent Cloud segment contributed $24.1 billion, reflecting a 20% increase.
CEO's Remarks
In a statement to the press, CEO Satya Nadella noted, “AI-driven transformation is changing work, work artifacts, and workflow across every role, function, and business process.” As Microsoft embraces these changes, it’s also aware of the risks that come with AI. The forward-looking comments in the earnings report pointed out possible hurdles, such as competition, cybersecurity dangers, and increased regulatory oversight.
Other Business Segments
The report also sheds light on the More Personal Computing segment, which recorded revenues of $13.2 billion, an increase of 17%. Notably, revenue from Xbox content and services skyrocketed by 61%, largely due to the recent Activision acquisition.
These results reflect trends seen in other tech companies like Google, which noted a 35% rise in cloud revenue.
