Slide 1: Fourth Quarter Fiscal Year 2023 Results
£8 Microsoft Fourth Quarter Fiscal Year 2023 Results Satya Nadella Amy Hood Brett Iversen July 25, 2023
Slide 2: Forward-looking statements
This presentation contains forward-looking statements, which are any predictions, projections, or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could materially differ because of fa
Slide 3: Financial Summary and Highlights
Financial Summary and Highlights Quarterly Business Highlights Segment Financial Overview Appendix
Slide 4: FY23 Q4 Financial Summary
FY23 Q4 Financial Summary ($ in billions, except per share amounts) FY23 Q4 Growth CC Growth* Productivity and Business Processes $18.3 10% 12% Intelligent Cloud $24.0 15% 17% More Personal Computing $13.9 (4)% (3)% Revenue $56.2 8% 10% Gross margin $39.4 11% 13% Gross margin percentage 70% 2 pts Op
Slide 5: Quarterly Commercial Highlights
Quarterly Commercial Highlights Investor Metrics FY22 Q4 FY23 QI FY23 Q2 FY23 Q3 FY23 Q4 Commercial bookings growth (y/y) 25% / 35% (3)% / 16% 7% [4% 11% / 12% (2)% / (1)% Commercial remaining performance obligation (in billions) $189 $180 $189 $196 $224 Commercial revenue annuity mix 96% 96% 96% 96
Slide 6: FY23 Q4 Other Financial Highlights
FY23 Q4 Other Financial Highlights Cash returned to shareholders Operating expenses Other income and expense Effective tax rate Capital expenditures Cash flow Includes non-GAAP constant currency ( Returned $9.7 billion to shareholders with $4.6 billion in share repurchases and $5.1 billion in divide
Slide 7: FY23 Q4 Business Highlights
FY23 Q4 Business Highlights * Office Commercial products and cloud services revenue increased 12% (up 14% CC) driven by Office 365 Commercial revenue growth of 15% (up 17% CC) Productivity * Office Consumer products and cloud services revenue increased 3% (up 6% CC) and Microsoft 365 Consumer é and
Slide 8: Productivity and Business Processes
Productivity and Business Processes tte Overview Investor Metrics FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 Office Commercial products and cloud services revenue growth (y/y) 9% / 13% 7% {13% 7% [14% 13% / 17% 12% / 14% Office Consumer products and cloud services revenue growth (y/y) 9% / 12% 7% / 11%
Slide 9: Productivity and Business Processes Highlights
ce Productivity and Business Processes Highlights Office Commercial * Office Commercial products and cloud services revenue grew 12% (up 14% CC) * Office 365 Commercial revenue grew 15% (up 17% CC) with Office 365 Commercial seat growth of 11%, driven by small and medium business and frontline worke
Slide 10: Intelligent Cloud
Intelligent Cloud Overview Investor Metrics Server products and cloud services revenue growth (y/y) Growth rates include non-GAAP CC growth (GAAP % / CC %). Total Revenue + Revenue grew 15% (up 17% CC) driven by Azure and other cloud services Operating Income * Gross margin dollars grew 16% (up 17%
Slide 11: Intelligent Cloud Highlights
Intelligent Cloud = Highlights Server Products and Cloud Services Trended Revenue Growth * Server products and cloud services revenue grew 17% (up 18% CC) + Azure and other cloud services revenue grew 26% (up 27% CC) driven by Azure and strong demand for our consumption-based services other cloud +
Slide 12: More Personal Computing
+2) More Personal Computing Overview Investor Metrics Windows OEM revenue growth (y/y) Windows Commercial products and cloud services revenue growth (y/y) Devices revenue growth (y/y) Xbox content and services revenue growth (y/y) Search and news advertising revenue (ex TAC) growth (y/y) Growth rate
Slide 13: More Personal Computing Highlights
+2) More Personal Computing Highlights Windows + Windows OEM revenue declined 12% primarily driven by the PC market, partially offset by roughly 7 points of benefit from early back-to-school inventory builds + Windows Commercial products and cloud services revenue grew 2% (up 3% CC) driven by demand
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Our presentation of fourth-quarter performance includes non-GAAP financial measures. The following slides provide reconciliations between the GAAP and non-GAAP financial measures presented: + Constant currency reconciliations * Cash flow reconci
Slide 16: Constant Currency Reconciliation
Constant Currency Reconciliation Three Months Ended June 30, rn Gross Operating Operating Net Dilut ed ($ in millions, except per share amounts) Revenue . Earnings Margin Expenses Income Income per Share 2022 As Reported (GAAP) $51,865 $35,436 $14,902 $20,534 $16,740 $2.23 2023 As Reported (GAAP) $5
Slide 17: Constant Currency Reconciliation
Constant Currency Reconciliation Segment Revenue Three Months Ended June 30, in millions) Productivity and Intelligent More Personal Business Processes Cloud Computing 2022 As Reported (GAAP) $16,600 $20,804 $14,461 2023 As Reported (GAAP) $18,291 $23,993 $13,905 Percentage Change Y/Y (GAAP) 10% 15%
Slide 18: Constant Currency Reconciliation
Constant Currency Reconciliation Segment Gross Margin Three Months Ended June 30, 2023 Percentage Change Y/Y Percentage Change Y/Y (GAAP) Constant Currency Impact Constant Currency Productivity and Business Processes 14% 2% 16% Intelligent Cloud 16% 1% 17% More Personal Computing (2% 2% 0% Segment O
Slide 19: Constant Currency Reconciliation
Constant Currency Reconciliation Selected Product and Service Information Three Months Ended June 30, 2023 Percentage Change Y/Y (GAAP) Constant Currency Impact Percentage Gary Commercial bookings (2)% 1% ()% Commercial remaining performance obligation 19% (1)% 18% Microsoft Cloud revenue 21% 2% 23%
Slide 20: Cash Flow Reconciliation
Cash Flow Reconciliation Three Months Ended June 30, ($ in millions) 2023 2022 Chonwe wv Net Cash from Operations (GAAP) $28,770 $24,629 17% Additions to Property and Equipment $(8,943) $(6,871) * Free Cash Flow $19,827 $17,758 12% Impact of tax payment related to the TCJA capitalization of R&D prov
Slide 21: Microsoft
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