Slide 1: First Quarter Fiscal Year 2024 Results
EE Microsoft First Quarter Fiscal Year 2024 Results Satya Nadella Amy Hood Brett Iversen October 24, 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: FY24 Q1 Financial Summary
FY24 Q1 Financial Summary ($ in billions, except per share amounts) FY24 Q1 Growth CC Growth* Productivity and Business Processes $18.6 13% 12% Intelligent Cloud $24.3 19% 19% More Personal Computing $13.7 3% 2% Revenue $56.5 13% 12% Gross margin $40.2 16% 15% Gross margin percentage 7™1% 2 pts Oper
Slide 5: Quarterly Commercial Highlights
Quarterly Commercial Highlights Investor Metrics FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 Commercial bookings growth (y/y) (3)% / 16% 7% (4% 11% / 12% (2)% / (1)% 14% / 17% Commercial remaining performance obligation (in billions) $180 $189 $196 $224 $212 Commercial revenue annuity mix 96% 96% 96% 97
Slide 6: FY24 Q1 Other Financial Highlights
FY24 Q1 Other Financial Highlights Cash returned to shareholders Returned $9.1 billion to shareholders with $3.6 billion in share repurchases and $5.6 billion in dividends + Operating expenses were $13.3 billion, up 1% year-over-year driven by marketing, LinkedIn, and cloud engineering, Operating ex
Slide 7: FY24 Q1 Business Highlights
FY24 Q1 Business Highlights Productivity é and Business Processes Intelligent Cloud More Personal Computing Office Commercial products and cloud services revenue increased 15% (up 14% CC) driven by Office 365 Commercial revenue growth of 18% (up 17% CC) Office Consumer products and cloud services re
Slide 8: Productivity and Business Processes Overview
Productivity and Business Processes tte Overview Investor Metrics FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 Office Commercial products and cloud services revenue growth (y/y) 7% / 13% 7% {14% 13% / 17% 12% [14% 15% / 14% Office Consumer products and cloud services revenue growth (y/y) 7% 111% (2)% / 3
Slide 9: Productivity and Business Processes Highlights
ce Productivity and Business Processes Highlights Office Commercial * Office Commercial products and cloud services revenue grew 15% (up 14% CC) * Office 365 Commercial revenue grew 18% (up 17% CC) with Office 365 Commercial seat growth of 10%, driven by small and medium business and frontline worke
Slide 10: Intelligent Cloud Overview
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 19% driven by Azure and other cloud services Operating Income * Gross margin dollars grew 20% (up 19% CC) and gros
Slide 11: Intelligent Cloud Highlights
Intelligent Cloud = Highlights Server Products and Cloud Services Trended Revenue Growth * Server products and cloud services revenue grew 21% + Azure and other cloud services revenue grew 29% (up 28% CC) driven by Azure and strong demand for our consumption-based services other cloud + Server produ
Slide 12: More Personal Computing Overview
+») More Personal Computing Overview Investor Metrics FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 Windows OEM revenue growth (y/y) (15)% (39)% (28)% (12)% Windows Commercial products and cloud services revenue growth (y/y) 8% / 15% (3)% / 3% 14% / 18% 2% / 3% Devices revenue growth (y/y) 2% / 8% (39)% / (34)% (
Slide 13: More Personal Computing Highlights
+») More Personal Computing Highlights Windows Gaming + Windows OEM revenue grew 4% + Gaming revenue grew 9% (up 8% CC) + Windows Commercial products and cloud services revenue grew 8% driven * Xbox content and services revenue grew 13% (up 12% CC) driven by growth by demand for M365 in first-party
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 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 16: 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 2022 As Reported (GAAP) $50,122 $34,670 $13,152 $21,518 $17,556 $2.35 2023 As Reported (GAA
Slide 17: Constant Currency Reconciliation: Segment Revenue
Constant Currency Reconciliation Segment Revenue Three Months Ended September 30, in millions) Productivity and Intelligent More Personal Business Processes Cloud Computing 2022 As Reported (GAAP) $16,465 $20,325 $13,332 2023 As Reported (GAAP) $18,592 $24,259 $13,666 Percentage Change Y/Y (GAAP) 13
Slide 18: Constant Currency Reconciliation: Segment Margin and Income
Constant Currency Reconciliation Segment Gross Margin Three Months Ended September 30, 2023 Percentage Change Y/Y Percentage Change Y/Y (GAAP) Constant Currency Impact Constant Currency Productivity and Business Processes 13% 0% 13% Intelligent Cloud 20% (1)% 19% More Personal Computing 13% (1)% 12%
Slide 19: Constant Currency Reconciliation: Product and Service Information
Constant Currency Reconciliation Selected Product and Service Information Three Months Ended September 30, 2023 Percentage Change V/Y (GAAP) Constant Currency Impact Percentage ey Commercial bookings 14% 3% 17% Commercial remaining performance obligation 18% 0% 18% Microsoft Cloud revenue 24% (1)% 2
Slide 20: Cash Flow Reconciliation
Cash Flow Reconciliation Three Months Ended September 30, ($ in millions) 2023 2022 Chonwe wv Net Cash from Operations (GAAP) $30,583 $23,198 32% Additions to Property and Equipment $(9,917) $(6,283) * Free Cash Flow $20,666 $16,915 22% *Not meaningful. Free cash flow is included as an additional cl
Slide 21: Microsoft copyright
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