Cloud computing
business is growing
rapidly,
AI product commer-
cialization is expected
in the future
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Company profile：
Microsoft was founded in 1975 and currently has approximately 220000 employees. Microsoft provides users with cloud based solutions, software, services, platforms, and content, solution support, and consulting services, providing relevant services to a global audience Online advertising for. In Microsoft's nearly 50 year history of development,It has evolved from an initial software company to a diversified technology platform giant that integrates software, cloud computing, hardware, search, gaming, services, and more. Microsoft has basically led the wave of the PC era and seized the opportunity of rapid development in the cloud computing field to become the world's second largest cloud vendor. In the future, AI is expected to bring new growth curves to the company.
Global SaaS and cloud services giant, AI gains long-term value.
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①The company's core Office and cloud businesses have excellent competitiveness, significantly improving enterprise efficiency, and have the ability to increase prices in the long term. In terms of management, the company has established a mature structure Our professional manager system has a good governance structure.
②The leading layout investment in the AI field is expected to significantly enhance the competitiveness and commercial value of existing businesses such as Office, cloud, and search, and assist in the development of innovative products, further assisting customers in improving efficiency, and opening up the company's long-term space.
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Azure's growth remains resilient, with AI service customers growing tenfold month on month.
Against the backdrop of a slowdown in corporate IT spending, revenue from Azure and other cloud services continued to achieve a year-on-year growth of+27% (CC+31%) in this quarter. At the same time, OpenAI collaborated to bring in over 2500 customers, with a quarter on quarter growth of over 10 times.
Office 365 is steadily penetrating, focusing on the implementation of AI product scale in the future.
This quarter, the commercial Office 365 increased by+14% year-on-year (CC+18%), the number of seats for the commercial version of Office 365 increased by+11%, and the number of personal version subscriptions was 65.4 million (+12% year-on-year). Office subscription products continued to penetrate. In terms of AI, the management stated that Copilot is embedded in Microsoft 365 applications and has been used by millions every day.
Personal computing business is declining, and search market share is expected to increase.
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The revenue of personal computing business FY23Q3 decreased by 9% year-on-year to $13.3 billion. Due to weak PC demand and an increase in channel inventory levels, Windows OEM and device revenue has shown a significant decline. Thanks to the strong renewal execution and the increase of Revenue recognition agreements in the same period, the revenue of Windows commercial products and cloud services increased by 14%. Search and News Advertising The revenue growth of 10% is mainly due to the growth of search volume and the acquisition of advertising platform Xandr. The new version of Bing's search engine and Edge browser integrate GPT technology, and with the support of AI, Bing's performance has significantly improved, posing a challenge to Google's leading position in search, with room for market share improvement.
Data source: Company,Broad Inventment Securities forecasts.
Risk factors:macro pressure, intensifying industry competition, geopolitics, etc.
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