04/25/2024 | Press release | Distributed by Public on 04/25/2024 14:10
REDMOND, Wash. - April 25, 2024 - Microsoft Corp. today announced the following results for the quarter ended March 31, 2024, as compared to the corresponding period of last fiscal year:
"Microsoft Copilot and Copilot stack are orchestrating a new era of AI transformation, driving better business outcomes across every role and industry," said Satya Nadella, chairman and chief executive officer of Microsoft.
"This quarter Microsoft Cloud revenue was $35.1 billion, up 23% year-over-year, driven by strong execution by our sales teams and partners," said Amy Hood, executive vice president and chief financial officer of Microsoft.
Business Highlights
Revenue in Productivity and Business Processes was $19.6 billion and increased 12% (up 11% in constant currency), with the following business highlights:
Revenue in Intelligent Cloud was $26.7 billion and increased 21%, with the following business highlights:
Revenue in More Personal Computing was $15.6 billion and increased 17%, with the following business highlights:
Microsoft returned $8.4 billion to shareholders in the form of share repurchases and dividends in the third quarter of fiscal year 2024.
Business Outlook
Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.
Quarterly Highlights, Product Releases, and Enhancements
Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.
Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.
Environmental, Social, and Governance (ESG)
To better execute on Microsoft's mission, we focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our investor relations ESG website.
Webcast Details
Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, corporate secretary and deputy general counsel, and Brett Iversen, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company's performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on April 25, 2025.
Constant Currency
Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.
Financial Performance Constant Currency Reconciliation
Three Months Ended March 31, | ||||
($ in millions, except per share amounts) | Revenue | Operating Income | Net Income | Diluted Earnings per Share |
2023 As Reported (GAAP) | $52,857 | $22,352 | $18,299 | $2.45 |
2024 As Reported (GAAP) | $61,858 | $27,581 | $21,939 | $2.94 |
Percentage Change Y/Y (GAAP) | 17% | 23% | 20% | 20% |
Constant Currency Impact | $189 | $167 | $(76) | $(0.01) |
Percentage Change Y/Y Constant Currency | 17% | 23% | 20% | 20% |
Segment Revenue Constant Currency Reconciliation
Three Months Ended March 31, | |||
($ in millions) | Productivity and Business Processes | Intelligent Cloud | More Personal Computing |
2023 As Reported (GAAP) | $17,516 | $22,081 | $13,260 |
2024 As Reported (GAAP) | $19,570 | $26,708 | $15,580 |
Percentage Change Y/Y (GAAP) | 12% | 21% | 17% |
Constant Currency Impact | $85 | $65 | $39 |
Percentage Change Y/Y Constant Currency | 11% | 21% | 17% |
Selected Product and Service Revenue Constant Currency Reconciliation
Three Months Ended March 31, 2024 | |||
Percentage Change Y/Y (GAAP) | Constant Currency Impact | Percentage Change Y/Y Constant Currency | |
Microsoft Cloud | 23% | 0% | 23% |
Office Commercial products and cloud services | 13% | (1)% | 12% |
Office 365 Commercial | 15% | 0% | 15% |
Office Consumer products and cloud services | 4% | 0% | 4% |
10% | (1)% | 9% | |
Dynamics products and cloud services | 19% | (2)% | 17% |
Dynamics 365 | 23% | (1)% | 22% |
Server products and cloud services | 24% | 0% | 24% |
Azure and other cloud services | 31% | 0% | 31% |
Windows | 11% | 0% | 11% |
Windows OEM | 11% | 0% | 11% |
Windows Commercial products and cloud services | 13% | (1)% | 12% |
Devices | (17)% | 1% | (16)% |
Xbox content and services | 62% | (1)% | 61% |
Search and news advertising excluding traffic acquisition costs | 12% | 0% | 12% |
About Microsoft
Microsoft (Nasdaq "MSFT" @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.
Forward-Looking Statements
Statements in this release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:
For more information about risks and uncertainties associated with Microsoft's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of Microsoft's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft's Investor Relations department at (800) 285-7772 or at Microsoft's Investor Relations website at http://www.microsoft.com/en-us/investor.
All information in this release is as of March 31, 2024. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations.
For more information, press only:
Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, [email protected]
For more information, financial analysts and investors only:
Brett Iversen, Vice President, Investor Relations, (425) 706-4400
Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today's 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.