Microsoft Cloud power drives fourth quarter outcomes

REDMOND, Wash. — July 30, 2024 — Microsoft Corp. as we speak introduced the next outcomes for the quarter ended June 30, 2024, as in comparison with the corresponding interval of final fiscal 12 months:

• Income was $64.7 billion and elevated 15% (up 16% in fixed foreign money)
• Working revenue was $27.9 billion and elevated 15% (up 16% in fixed foreign money)
• Internet revenue was $22.0 billion and elevated 10% (up 11% in fixed foreign money)
• Diluted earnings per share was $2.95 and elevated 10% (up 11% in fixed foreign money)

“Our sturdy efficiency this fiscal 12 months speaks each to our innovation and to the belief clients proceed to position in Microsoft,” mentioned Satya Nadella, chairman and chief government officer of Microsoft. “As a platform firm, we’re centered on assembly the mission-critical wants of our clients throughout our at-scale platforms as we speak, whereas additionally guaranteeing we lead the AI period.”

“We closed out our fiscal 12 months with a strong quarter, highlighted by report bookings and Microsoft Cloud quarterly income of $36.8 billion, up 21% (up 22% in fixed foreign money) year-over-year,” mentioned Amy Hood, government vice chairman and chief monetary officer of Microsoft.

Enterprise Highlights

Income in Productiveness and Enterprise Processes was $20.3 billion and elevated 11% (up 12% in fixed foreign money), with the next enterprise highlights:

• Workplace Business merchandise and cloud providers income elevated 12% (up 13% in fixed foreign money) pushed by Workplace 365 Business income progress of 13% (up 14% in fixed foreign money)
• Workplace Shopper merchandise and cloud providers income elevated 3% (up 4% in fixed foreign money) and Microsoft 365 Shopper subscribers grew to 82.5 million
• LinkedIn income elevated 10% (up 9% in fixed foreign money)
• Dynamics merchandise and cloud providers income elevated 16% pushed by Dynamics 365 income progress of 19% (up 20% in fixed foreign money)

Income in Clever Cloud was $28.5 billion and elevated 19% (up 20% in fixed foreign money), with the next enterprise highlights:

• Server merchandise and cloud providers income elevated 21% (up 22% in fixed foreign money) pushed by Azure and different cloud providers income progress of 29% (up 30% in fixed foreign money)

Income in Extra Private Computing was $15.9 billion and elevated 14% (up 15% in fixed foreign money), with the next enterprise highlights:

• Home windows income elevated 7% (up 8% in fixed foreign money) with Home windows OEM income progress of 4% and Home windows Business merchandise and cloud providers income progress of 11% (up 12% in fixed foreign money)
• Gadgets income decreased 11% (down 9% in fixed foreign money)
• Xbox content material and providers income elevated 61% pushed by 58 factors of internet influence from the Activision acquisition
• Search and information promoting income excluding site visitors acquisition prices elevated 19%

Microsoft returned $8.4 billion to shareholders within the type of share repurchases and dividends within the fourth quarter of fiscal 12 months 2024.

Fiscal Yr 2024 Outcomes

Microsoft Corp. as we speak introduced the next outcomes for the fiscal 12 months ended June 30, 2024, as in comparison with the corresponding interval of final fiscal 12 months:

• Income was $245.1 billion and elevated 16% (up 15% in fixed foreign money)
• Working revenue was $109.4 billion and elevated 24%, and elevated 22% non-GAAP (up 21% in fixed foreign money)
• Internet revenue was $88.1 billion and elevated 22%, and elevated 20% non-GAAP
• Diluted earnings per share was $11.80 and elevated 22%, and elevated 20% non-GAAP

The next desk reconciles our monetary outcomes for the fiscal 12 months ended June 30, 2024, reported in accordance with usually accepted accounting rules (GAAP) to non-GAAP monetary outcomes. Extra info relating to our non-GAAP definition is supplied beneath. All progress comparisons relate to the corresponding interval within the final fiscal 12 months.

Enterprise Outlook

Microsoft will present forward-looking steerage in reference to this quarterly earnings announcement on its earnings convention name and webcast.

Quarterly Highlights, Product Releases, and Enhancements 

Each quarter Microsoft delivers tons of of merchandise, both as new releases, providers, or enhancements to present services and products. These releases are a results of important analysis and growth investments, remodeled a number of years, designed to assist clients be extra productive and safe and to ship differentiated worth throughout the cloud and the sting.

Listed below are the main product releases and different highlights for the quarter, organized by product classes, to assist illustrate how we’re accelerating innovation throughout our companies whereas increasing our market alternatives.

Environmental, Social, and Governance (ESG)

To be taught extra about Microsoft’s company governance and our environmental and social practices, please go to our investor relations Board and ESG web site and reporting at Microsoft.com/transparency.

Webcast Particulars

Satya Nadella, chairman and chief government officer, Amy Hood, government vice chairman and chief monetary officer, Alice Jolla, chief accounting officer, Keith Dolliver, company secretary and deputy common counsel, and Brett Iversen, vice chairman of investor relations, will host a convention name and webcast at 2:30 p.m. Pacific time (5:30 p.m. Japanese time) as we speak to debate particulars of the corporate’s efficiency for the quarter and sure forward-looking info. The session could also be accessed at http://www.microsoft.com/en-us/investor. The webcast shall be out there for replay by way of the shut of enterprise on July 30, 2025.

Non-GAAP Definition

Q2 cost. Within the second quarter of fiscal 12 months 2023, Microsoft recorded prices associated to selections introduced on January 18th, 2023, together with worker severance bills, impairment expenses ensuing from adjustments to our {hardware} portfolio, and prices associated to lease consolidation actions.

Microsoft has supplied non-GAAP monetary measures associated to the Q2 cost to help buyers in higher understanding our efficiency. Microsoft believes these non-GAAP measures help buyers by offering extra perception into its operational efficiency and assist make clear tendencies affecting its enterprise. For comparability of reporting, administration considers non-GAAP measures along side GAAP monetary leads to evaluating enterprise efficiency. The non-GAAP monetary measures offered on this launch shouldn’t be thought of as an alternative to, or superior to, the measures of economic efficiency ready in accordance with GAAP.

Fixed Forex

Microsoft presents fixed foreign money info to supply a framework for assessing how our underlying companies carried out excluding the impact of international foreign money charge fluctuations. To current this info, present and comparative prior interval outcomes for entities reporting in currencies apart from United States {dollars} are transformed into United States {dollars} utilizing the typical trade charges from the comparative interval relatively than the precise trade charges in impact through the respective durations. All progress comparisons relate to the corresponding interval within the final fiscal 12 months. Microsoft has supplied this non-GAAP monetary info to help buyers in higher understanding our efficiency. The non-GAAP monetary measures offered on this launch shouldn’t be thought of as an alternative to, or superior to, the measures of economic efficiency ready in accordance with GAAP.

Monetary Efficiency Fixed Forex Reconciliation

 Section Income Fixed Forex Reconciliation

 Chosen Product and Service Income Fixed Forex Reconciliation           

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and instruments powered by AI to ship modern options that meet the evolving wants of our clients. The expertise firm is dedicated to creating AI out there broadly and doing so responsibly, with a mission to empower each individual and each group on the planet to attain extra.

Ahead-Trying Statements

Statements on this launch which might be “forward-looking statements” are based mostly on present expectations and assumptions which might be topic to dangers and uncertainties. Precise outcomes might differ materially due to components corresponding to:

• intense competitors in all of our markets which will adversely have an effect on our outcomes of operations;
• deal with cloud-based and AI providers presenting execution and aggressive dangers;
• important investments in services and products that will not obtain anticipated returns;
• acquisitions, joint ventures, and strategic alliances which will have an antagonistic impact on our enterprise;
• impairment of goodwill or amortizable intangible belongings inflicting a major cost to earnings;
• cyberattacks and safety vulnerabilities that might result in lowered income, elevated prices, legal responsibility claims, or hurt to our repute or aggressive place;
• disclosure and misuse of non-public knowledge that might trigger legal responsibility and hurt to our repute;
• the chance that we could not be capable to defend info saved in our services and products from use by others;
• abuse of our promoting, skilled, market, or gaming platforms which will hurt our repute or consumer engagement;
• services and products, how they’re utilized by clients, and the way third-party services and products work together with them, presenting safety, privateness, and execution dangers;
• points about using synthetic intelligence in our choices which will end in reputational or aggressive hurt, or authorized legal responsibility;
• extreme outages, knowledge losses, and disruptions of our on-line providers if we fail to take care of an satisfactory operations infrastructure;
• high quality or provide issues;
• authorities enforcement below competitors legal guidelines and new market regulation could restrict how we design and market our merchandise;
• potential penalties of commerce and anti-corruption legal guidelines;
• potential penalties of present and rising authorized and regulatory necessities;
• legal guidelines and rules regarding the dealing with of non-public knowledge which will impede the adoption of our providers or end in elevated prices, authorized claims, fines, or reputational injury;
• claims in opposition to us which will end in antagonistic outcomes in authorized disputes;
• uncertainties regarding our enterprise with authorities clients;
• extra tax liabilities;
• sustainability rules and expectations which will expose us to elevated prices and authorized and reputational threat;
• an incapacity to guard and make the most of our mental property could hurt our enterprise and working outcomes;
• claims that Microsoft has infringed the mental property rights of others;
• injury to our repute or our manufacturers which will hurt our enterprise and outcomes of operations;
• antagonistic financial or market circumstances which will hurt our enterprise;
• catastrophic occasions or geo-political circumstances, such because the COVID-19 pandemic, which will disrupt our enterprise;
• publicity to elevated financial and operational uncertainties from working a worldwide enterprise, together with the consequences of international foreign money trade and
• the dependence of our enterprise on our means to draw and retain gifted staff.

For extra details about dangers and uncertainties related to Microsoft’s enterprise, please seek advice from the “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” and “Danger Components” sections of Microsoft’s SEC filings, together with, however not restricted to, its annual report on Kind 10-Ok and quarterly reviews on Kind 10-Q, copies of which can be obtained by contacting Microsoft’s Investor Relations division at (800) 285-7772 or at Microsoft’s Investor Relations web site at http://www.microsoft.com/en-us/investor.

All info on this launch is as of June 30, 2024. The corporate undertakes no responsibility to replace any forward-looking assertion to evolve the assertion to precise outcomes or adjustments within the firm’s expectations.

For extra info, press solely:

Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

For extra info, monetary analysts and buyers solely:

Brett Iversen, Vice President, Investor Relations, (425) 706-4400

Be aware to editors: For extra info, information and views from Microsoft, please go to the Microsoft Information Heart at http://www.microsoft.com/information. Internet hyperlinks, phone numbers, and titles have been appropriate at time of publication, however could since have modified. Shareholder and monetary info, in addition to as we speak’s 2:30 p.m. Pacific time convention name with buyers and analysts, is offered at http://www.microsoft.com/en-us/investor.

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