Slide 1: FY25 Investor Metrics
FY25 Investor Metrics August 2024 Exhibit 99.1
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: Agenda
Agenda Disclosure framework Updates for FY25 Segment changes Metric changes FY25 Q1 Outlook updates
Slide 4: Disclosure framework
SEC filings (10-Qs and 10-K) Business highlights and comparative view of performance (GAAP and constant currency) Enable investors to evaluate progress against our ambitions Provide transparency into performance trends Reflect the continued evolution of our products and services Momentum and innovat
Slide 5: FY24 and FY25 segment structure
FY24 Segment structure FY25 Segment structure Productivity and Business Processes Productivity and Business Processes Office products and cloud services Office Commercial products and cloud services Microsoft 365 Commercial products and cloud services Microsoft 365 Commercial cloud Microsoft 365 Com
Slide 6: Key segment change
Key segment change – Microsoft 365 Commercial We have brought revenue from the commercial components of Microsoft 365 together in the Productivity and Business Processes (“PBP”) segment to align to how the business is managed. “Microsoft 365 Commercial products and cloud services” will now be report
Slide 7: Metric changes
Metric changes
Slide 8: FY25 Investor metrics
FY25 Investor metrics Commercial metrics Commercial bookings growth Commercial remaining performance obligation Commercial revenue annuity mix Microsoft Cloud revenue and revenue growth Microsoft Cloud gross margin percentage Microsoft 365 Commercial cloud revenue growth Microsoft 365 Commercial sea
Slide 9: What changes and why?
What changes and why? As a result of the Microsoft 365 Commercial segment change, “Microsoft 365 Commercial cloud revenue growth” metric created in the PBP segment to align to how the business is managed. The metric is comprised of: Office 365 Commercial revenue EMS revenue and Power BI per-user rev
Slide 10: Cloud metric change
Microsoft 365 Commercial cloud metric change FY24 Segment structure Productivity and Business Processes Office products and cloud services Office Commercial products and cloud services Office 365 Commercial Office Commercial products Office Consumer products and cloud services Dynamics products and
Slide 11: Other metric changes
What changes and why? Copilot Pro subscribers removed from Microsoft 365 Consumer subscribers metric to align with the corresponding Copilot Pro revenue movement out of Microsoft 365 Consumer Windows OEM revenue growth and Devices revenue growth metrics replaced by “Windows OEM and Devices revenue g
Slide 12: FY24 as reported vs restated investor metrics
FY24 As reported FY24 Restated Investor Metrics FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Microsoft 365 Commercial cloud revenue growth (y/y) 1 Not previously reported 20% / 19% 20% / 18% 17% 15% / 16% 18% Azure and other cloud services revenue growth (y/y) 1, 2, 3 29
Slide 13: FY25 Q1 Outlook updates
FY25 Q1 Outlook updates
Slide 14: Updated outlook by segment and foreign currency impact
As provided on July 30, 2024 Updated outlook Foreign currency impact Decrease to revenue growth at the total company and all individual segment levels of less than 1 point Decrease to COGS growth of less than 1 point and no meaningful impact to Opex growth No change Productivity and Business Process
Slide 15: Updated outlook: commercial business and segments
As provided on July 30, 2024 Updated outlook Commercial Business Commercial Business Commercial bookings Healthy growth on a growing expiry base Commercial bookings No change Microsoft Cloud gross margin percentage Roughly 70% Microsoft Cloud gross margin percentage No change Productivity and Busine
Slide 16: Appendix
Appendix
Slide 17: FY25 Investor metric definitions: commercial metrics
FY25 Investor metric definitions Commercial metrics Commercial bookings growth: for commercial products and cloud services, sum of revenue growth, plus change in balance of unearned revenue plus the change in contracted not billed balance Commercial remaining performance obligation: commercial porti
Slide 18: FY25 Investor metric definitions
Microsoft 365 Commercial cloud revenue growth: revenue from Microsoft 365 Commercial subscriptions, comprising Microsoft 365 Commercial, Exchange, SharePoint, Microsoft Teams, Microsoft 365 Security and Compliance, Enterprise Mobility + Security, the cloud portion of Windows Commercial, the per-user
Slide 19: FY25 Investor metric definitions: More Personal Computing
Windows OEM & Devices revenue growth: revenue from sales of Windows Pro and non-Pro licenses sold through the OEM channel and sales of first-party Devices, including Surface, HoloLens, and PC accessories Xbox content and services revenue growth: revenue from Xbox content and services, comprising fir
Slide 20: Microsoft
Em Microsoft © Copyright Microsoft Corporation Al rights reserved.