Microsoft’s latest results focus on combating inflation

▤ Summary

Microsoft has reported revenue of $43bn for its first quarter of 2022, a 22% increase on the previous year’s first-quarter results, driven by growth in cloud adoption. “Digital technology is a deflationary force in an inflationary economy,” said Satya Nadella, chairman and chief executive officer of Microsoft. The Microsoft Cloud delivers the end-to-end platforms and tools that organisations need to navigate this time of transition and change.” In a transcript of the earning call, posted on the Seeking Alpha site, Nadella was asked about how digitisation is helping businesses to compensate for price increases. With greater adoption of video conferencing and collaboration tools, Nadella said Microsoft had seen Teams winning business against traditional telephony and VoIP services. Asked during the earnings call about the state of the Windows PC market, Microsoft chief financial officer Amy Hood said the nature of hybrid work was changing how people and businesses purchased new PCs.

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