The summer period for quarterly results is not the bloodbath feared by many observers. But it seems pretty clear that the big digital companies have eaten their blank bread after two years of pandemic fat cows.
Alphabet, the parent company of Google, and Microsoft announced their figures for the second quarter and the two companies are not doing so badly even if they miss analysts’ forecasts. On the side of the Windows publisher, there is thus a turnover of 51.9 billion dollars (+ 12% compared to last year), for a net income of 16.7 billion (+ 2% ).
On the Alphabet side, we collected 69.7 billion in turnover (+ 13% compared to the second quarter of 2021) for profits of 16 billion (-13%). Advertising obviously continues to represent the bulk of cash inflows (40.7 billion), cloud computing activity 6.2 billion, advertising on YouTube 7.3 billion — i.e., small warning for the video platform, the growth lower in two years.
For Microsoft, one of the black spots of the quarter (although everything is relative) is the activity of Windows licenses for third-party manufacturers, which fell by 2%. Sales in the PC market fell by around 13% in the spring year on year. However, Microsoft estimates that it still delivers more PCs than before the pandemic. Sales of the Surface range increased by 10%, despite the absence of major new products recently.
On the side of the Xbox activity, there is good and bad. Console sales revenue is down 11% year-over-year, and content and services revenue is down 6%. However, the Xbox range reached over the entire fiscal year (which ended at the end of June) 16.2 billion, a record. For the record, more than 4 million players have indulged in the delights of Fortnite on the Xbox Cloud Gaming service where the Epic game is offered free of charge, including on iOS.
Fortnite playable again on iPhone and iPad, via Xbox Cloud Gaming
Microsoft can count on its cloud services and Office activity, up 9%, and on everything Azure (+40%) and servers (+22%). Even though Alphabet and Microsoft failed to match the analyst consensus, the shares of both groups rose (around 4%) in the green after the close on Wall Street, which in the current stock market slump is a small feat.
Recall that Apple will unveil the results of its third fiscal quarter this Thursday, July 28.