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What do Microsoft’s Monthly User Statistics Reveal Ahead of Q2 Earnings?
Stock Analysis & Ideas

What do Microsoft’s Monthly User Statistics Reveal Ahead of Q2 Earnings?

Tech giant Microsoft (MSFT) will announce its fiscal second-quarter 2022 earnings on January 25.

In order to get a sense of the company’s current state ahead of the Q2 report, we have used TipRanks’ Website Traffic tool. More monthly users means higher search and advertising revenues, as well as more subscription revenues for Microsoft.

So, let’s take a look at Microsoft’s monthly user statistics.

Microsoft’s Monthly Users

The graph above plainly shows that Microsoft saw an increase in visitors to its websites in the latest quarter, which has not yet been reported on. To put it in context, the overall number of unique visits increased 10% quarter-over-quarter to reach 1.5 billion. A higher number of visits likely indicates strong demand for its products. This should help the company to deliver strong top-line results in Q2.

When it comes to Microsoft’s different domains, the majority of them, including linkedin.com and office.com, showed a dip between November and December, indicating that demand for Microsoft products has recently been falling. This indicates that LinkedIn’s ad division may have reported lower sales in the second quarter of the fiscal year.

However, Microsoft’s search engine, bing.com, gained some traction with customers during the month of December. In December, the company’s estimated monthly visitation increased by 25% year-over-year to 174.2 million. Given the rise in users, Microsoft should continue to generate considerable search advertising revenue from Bing in the upcoming quarter.

Furthermore, overall projected visits to Microsoft’s online portal, msn.com, decreased in November but increased in December.

To summarize, Microsoft saw a small gain in website traffic in October, but a drop in November and December. Nonetheless, total unique visits to all domains, across all devices, increased year-over-year, indicating a possible rise in earnings. Further, given the enterprise-wide digital transformation, strong demand for Microsoft’s cloud services is expected to continue, increasing revenues to some extent in the Q2 quarter.

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