Slide 1: First Quarter Fiscal Year 2025 Results
EE Microsoft First Quarter Fiscal Year 2025 Results Satya Nadella Amy Hood Brett Iversen October 30, 2024
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 All growth comparisons in this presentation relate to the corresponding period of last fiscal year unless otherwise noted. We have recast certain prior period amounts to conform to the way we internall
Slide 4: FY25 Q1 Financial Summary
FY25 Q1 Financial Summary ($ in billions, except per share amounts) FY25 Q1 Growth CC Growth* Productivity and Business Processes $28.3 12% 13% Intelligent Cloud $24.1 20% 21% More Personal Computing $13.2 17% 17% Revenue $65.6 16% 16% Gross margin $45.5 13% 14% Gross margin percentage 69% (2) pts O
Slide 5: Quarterly Commercial Highlights
Quarterly Commercial Highlights Investor Metrics FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY25 Q1 Commercial bookings growth (y/y) 14% / 17% 17% / 9% 29% / 31% 17% / 19% 30% / 23% Commercial remaining performance obligation (in billions) $212 $222 $235 $269 $259 Commercial revenue annuity mix 96% 96% 97% 97%
Slide 6: FY25 Q1 Other Financial Highlights
FY25 Q1 Other Financial Highlights Cash returned to shareholders Returned $9.0 billion to shareholders with $6.2 billion in dividends and $2.8 billion in share repurchases * Operating expenses were $14.9 billion, up 12% year-over-year driven by 9 points from the Activision acquisition as Operating e
Slide 7: FY25 Q1 Business Highlights
FY25 Q1 Business Highlights * Microsoft 365 Commercial products and cloud services revenue increased 13% (up 14% CC) driven by Microsoft 365 Commercial cloud revenue growth of 15% (up 16% CC) Productivity * Microsoft 365 Consumer products and cloud services revenue increased 5% (up 6% CC) driven by
Slide 8: Productivity and Business Processes Overview
tte Investor Metrics Overview Microsoft 365 Commercial cloud revenue growth (y/y) Microsoft 365 Commercial seat growth (y/y) Microsoft 365 Consumer cloud revenue growth (y/y) Microsoft 365 Consumer subscribers (in millions) LinkedIn revenue growth (y/y) Dynamics 365 revenue growth (y/y) Growth rates
Slide 9: Productivity and Business Processes Highlights
ce Productivity and Business Processes Highlights Microsoft 365 Commercial * Microsoft 365 Commercial products and cloud services revenue grew 13% (up 14% CC) * Microsoft 365 Commercial cloud revenue grew 15% (up 16% CC) with Microsoft 365 Commercial seat growth of 8%, driven by small and medium bus
Slide 10: Intelligent Cloud
Intelligent Cloud Overview Investor Metrics Azure and other cloud services revenue growth (y/y) Trended Revenue Growth Server products revenue growth (y/y) Enterprise and partner services revenue growth (y/y) Growth rates include non-GAAP CC growth (GAAP % / CC %). Total Revenue + Revenue grew 20% (
Slide 11: Intelligent Cloud Highlights
Intelligent Cloud = Highlights Server Products and Cloud Services * Server products and cloud services revenue grew 23% + Azure and other cloud services revenue grew 33% (up 34% CC) driven by demand for our portfolio of services, including 12 points from our Al services * Server products revenue dec
Slide 12: More Personal Computing
+») More Personal Computing Overview Investor Metrics FY24Q1 FY24 Q2 FY24 Q3 FY24 Q4 Windows OEM and Devices revenue growth (y/y) (5)% 4% 2% (1)% / 0% Xbox content and services revenue growth (y/y) 13% / 12% 61% / 60% 62% / 61% 61% Search and news advertising revenue (ex TAC) growth (y/y) 8% / 7% 6%
Slide 13: Net impact from the Activision acquisition
Net impact from the Activision acquisition FY25 Q1 Net Impact from ($ in billions) Activision Revenue $1.69 Purchase accounting adjustments, $0.68 integration and transaction-related costs . Other cost of revenue $0.28 Cost of revenue $0.96 Gross margin $0.73 Purchase accounting adjustments, $0.23 i
Slide 14: More Personal Computing Highlights
+2) More Personal Computing Highlights Windows OEM and Devices + Windows OEM and Devices revenue grew 2% driven by growth in Windows OEM, partially offset by a decline in Devices Gaming * Gaming revenue grew 43% (up 44% CC) including 43 points of net impact from the Activision acquisition * Xbox con
Slide 15: Appendix
Appendix
Slide 16: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Our presentation of first-quarter performance includes non-GAAP financial measures. The following slides provide reconciliations between the GAAP and non-GAAP financial measures presented: + Constant currency reconciliations * Cash flow reconcil
Slide 17: Constant Currency Reconciliation
Constant Currency Reconciliation Three Months Ended September 30, rn Gross Operating Operating Net Dilut ed ($ in millions, except per share amounts) Revenue . Earnings Margin Expenses Income Income per Share 2023 As Reported (GAAP) $56,517 $40,215 $13,320 $26,895 $22,291 $2.99 2024 As Reported (GAA
Slide 18: Constant Currency Reconciliation
Constant Currency Reconciliation Segment Revenue Three Months Ended September 30, in millions) Productivity and Intelligent More Personal Business Processes Cloud Computing 2023 As Reported (GAAP) $25,226 $20,013 $11,278 2024 As Reported (GAAP) $28,317 $24,092 $13,176 Percentage Change Y/Y (GAAP) 12
Slide 19: Constant Currency Reconciliation
Constant Currency Reconciliation Segment Gross Margin Three Months Ended September 30, 2024 Percentage Change Y/Y Percentage Change Y/Y (GAAP) Constant Currency Impact Constant Currency Productivity and Business Processes 11% 1% 12% Intelligent Cloud 15% 0% 15% More Personal Computing 16% 1% 17% Seg
Slide 20: Constant Currency Reconciliation
Constant Currency Reconciliation Selected Product and Service Information Three Months Ended September 30, 2024 Percentage Change V/Y (GAAP) Constant Currency Impact Percentage cense yy Commercial bookings 30% % 23% Commercial remaining performance obligation 22% (1)% 21% Microsoft Cloud revenue 22%
Slide 21: Cash Flow Reconciliation
Cash Flow Reconciliation Three Months Ended September 30, . ane Percentage ($ in millions) 2024 2023 Change Y/Y Net Cash from Operations (GAAP) $34,180 $30,583 12% Additions to Property and Equipment $(14,923) $9,917) * Free Cash Flow $19,257 $20,666 (7)% *Not meaningful. Free cash flow is included
Slide 22: Microsoft
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