【Financial Results Summary】microsoft, increase in revenue and profit due to cloud growth, but concerns are growing for the second quarter outlook.

Revenue from the cloud service 'Azure' increased by 34%, slightly slower than the 35% growth in the fourth quarter, but according to some analysts, it exceeded the company's initial estimates.AI contributed to the growth in revenue.

The investment amount was $14.9 billion, a 50% increase from the same period last year.Mainly reflected in investments in datacenters.The total capital expenditure, including finance leases, was $20 billion, an increase from $11.2 billion in the same period last year.

Revenue from the Productivity & Business Processes division, which handles Office, LinkedIn, and Dynamics, was strong for the corporate-focused Microsoft 365.It increased by 12% to $28.317 billion. LinkedIn's revenue increased by 10%.

The revenue of the Personal Computing segment, which includes Windows, hardware, Xbox, and search, increased by 17% to $13.176 million. Revenue from the 'Xbox' home game console content and services increased by 61%, of which 53 pointsImpact of the Activision Blizzard acquisitiondue to.

Returning $9 billion to shareholders through dividends and share buybacks.

Demand for cloud and AI services
Currently, Azure serves more than 39,000 customers across all industries including American Tower, CTT, and Loreal.Having over 39,000 customers, up from the previous year.year-on-year.80%Above.increaseMicrosoft recorded an increase in demand for Azure and AI services, with CEO Nadella highlighting Microsoft's continued support for customer transformation and growth through innovative cloud and AI solutions. The CEO expects Azure's growth to accelerate as capital investments enhance AI capabilities.

expansion of facility investments
Microsoftis constructing datacenters worldwide and investing in high-performance chips and infrastructure. According to the earnings report, the amount invested in facilities increased by 50% year-on-year to $14.9 billion. The company has deployed data centers in over 60 regions worldwide, and this quarter announced new cloud and AI infrastructure investments in Brazil, Italy, Mexico, and Sweden to expand capacity in line with long-term demand signals. The significant investments are also affecting the electrical utilities and nuclear power plant infrastructure sectors.With datacenter deployments in over 60 regions worldwide, Microsoft announced new investments in cloud and AI infrastructure in Brazil, Italy, Mexico, and Sweden this quarter to expand capacity in response to long-term demand signals. The significant investments are extending into the electrical utilities and nuclear power plant infrastructure sectors.With datacenter deployments in over 60 regions worldwide, Microsoft announced new investments in cloud and AI infrastructure in Brazil, Italy, Mexico, and Sweden this quarter to expand capacity in response to long-term demand signals. The significant investments are extending into the electrical utilities and nuclear power plant infrastructure sectors.With datacenter deployments in over 60 regions worldwide, Microsoft announced new investments in cloud and AI infrastructure in Brazil, Italy, Mexico, and Sweden this quarter to expand capacity in response to long-term demand signals. The significant investments are extending into the electrical utilities and nuclear power plant infrastructure sectors.

Collaboration with OpenAI
Microsoft announced that its capital expenditure in the first quarter increased by 5.3% to reach $20 billion, and that spending on AI will increase in the second quarter. During the earnings call, Microsoft revealed that it had developed ChatGPT.Strategic partnership with OpenAIemphasized. This collaboration plays a crucial role in building and expanding the AI business, aiming to establish a leading position in the AI platform. CEO Satya Nadella has stated that Microsoft is investing approximately $14 billion in OpenAI, betting the future of Microsoft on AI.

Concerns about the slowdown in growth of 'Azure'
Amy Hood, Chief Financial Officer (CFO),pointed out the slowdown in the growth of Azure as well as the shrinking profit margin of the commercial cloud business,and reiterated the expectation that facility investments will increase with the expansion of AI services. They disclosed to investors their expectations of slower growth in cloud business revenue, decreased profit margins, and increased expenses. During the post-earnings call, company executivesOctober-December termOfThe growth rate of the Azure cloud computing division is expected to be 31-32%.The forecast excludes the impact of exchange rate fluctuations for the period from July to September, showing a slight deceleration from 34% to slightly below the previous period's 35%. Due to the forecast of a slowdown in the cloud business, the stock price fell in after-hours trading.