Slide 1: Fourth Quarter Fiscal Year 2024 Results
£8 Microsoft Fourth Quarter Fiscal Year 2024 Results Satya Nadella Amy Hood Brett Iversen July 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. Numbers may not foot due to rounding.
Slide 4: FY24 Q4 Financial Summary
FY24 Q4 Financial Summary ($ in billions, except per share amounts) FY24 Q4 Growth CC Growth* Productivity and Business Processes $20.3 11% 12% Intelligent Cloud $28.5 19% 20% More Personal Computing $15.9 14% 15% Revenue $64.7 15% 16% Gross margin $45.0 14% 15% Gross margin percentage 70% (1) pt Op
Slide 5: Quarterly Commercial Highlights
Quarterly Commercial Highlights Investor Metrics FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 Commercial bookings growth (y/y) (2)% / (1)% 14% / 17% 17% / 9% 29% / 31% 17% / 19% Commercial remaining performance obligation (in billions) $224 $212 $222 $235 $269 Commercial revenue annuity mix 97% 96% 96% 9
Slide 6: FY24 Q4 Other Financial Highlights
FY24 Q4 Other Financial Highlights Cash returned to shareholders + Returned $8.4 billion to shareholders with $5.6 billion in dividends and $2.8 billion in share repurchases * Operating expenses were $17.1 billion, up 13% year-over-year driven by 9 points from the Activision acquisition Operating ex
Slide 7: FY24 Q4 Business Highlights
FY24 Q4 Business Highlights Office Commercial products and cloud services revenue increased 12% (up 13% CC) driven by Office 365 Commercial revenue growth of 13% (up 14% CC) Productivity * Office Consumer products and cloud services revenue increased 3% (up 4% CC) and Microsoft 365 Consumer e and Bu
Slide 8: Productivity and Business Processes
Productivity and Business Processes tte Overview Investor Metrics FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 Office Commercial products and cloud services revenue growth (y/y) 12% / 14% 15% { 14% 15% / 13% 13% / 12% 12% / 13% Office Consumer products and cloud services revenue growth (y/y) 3% / 6% 3% /
Slide 9: Productivity and Business Processes Highlights
ce Productivity and Business Processes Highlights Office Commercial LinkedIn * Office Commercial products and cloud services revenue grew 12% (up 13% CC) + LinkedIn revenue grew 10% (up 9% CC) driven by growth across all lines of + Office 365 Commercial revenue grew 13% (up 14% CO) with Office 365 b
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 19% (up 20% CC) driven by Azure Operating Income * Gross margin dollars grew 16% and gross margin percentage decre
Slide 11: Intelligent Cloud Highlights
Intelligent Cloud = Highlights Server Products and Cloud Services Trended Revenue Growth * Server products and cloud services revenue grew 21% (up 22% CC) FY23 Q4 FY24 Q1 FY24Q2—FY24.Q3. + Azure and other cloud services revenue grew 29% (up 30% CC) driven by Aaa entl demand for our consumption-based
Slide 12: More Personal Computing
+») More Personal Computing Overview Investor Metrics FY23 Q4 FY24 Q1 Windows OEM revenue growth (y/y) (12)% 4% Windows Commercial products and cloud services revenue growth (y/y) 2% / 3% 8% Devices revenue growth (y/y) (20)% / (18)% (22)% Xbox content and services revenue growth (y/y) 5% / 6% 13% /
Slide 13: Net impact from the Activision acquisition
Net impact from the Activision acquisition FY24 Q4 Net Impact from ($ in billions) Activision Revenue $1.68 Purchase accounting adjustments, $0.69 integration and transaction-related costs : Other cost of revenue $0.21 Cost of revenue $0.90 Gross margin $0.78 Purchase accounting adjustments, $0.25 i
Slide 14: More Personal Computing Highlights
+2) More Personal Computing Highlights Windows + Windows OEM revenue grew 4% as PC market volumes continue at pre- pandemic levels + Windows Commercial products and cloud services revenue grew 11% (up 12% CC) driven by demand for Microsoft 365 Devices + Devices revenue declined 11% (down 9% CC) as w
Slide 15: Appendix
Appendix
Slide 16: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Our presentation of fourth-quarter performance includes non-GAAP financial measures. The following slides provide reconciliations between the GAAP and non-GAAP financial measures presented: + Constant currency reconciliations * Cash flow reconci
Slide 17: Constant Currency Reconciliation
Constant Currency Reconciliation Three Months Ended June 30, rn Gross Operating Operating Net Dilut ed ($ in millions, except per share amounts) Revenue . Earnings Margin Expenses Income Income per Share 2023 As Reported (GAAP) $56,189 $39,394 $15,140 $24,254 $20,081 $2.69 2024 As Reported (GAAP) $6
Slide 18: Constant Currency Reconciliation
Constant Currency Reconciliation Segment Revenue Three Months Ended June 30, in millions) Productivity and Intelligent More Personal Business Processes Cloud Computing 2023 As Reported (GAAP) $18,291 $23,993 $13,905 2024 As Reported (GAAP) $20,317 $28,515 $15,895 Percentage Change Y/Y (GAAP) 11% 19%
Slide 19: Constant Currency Reconciliation
Constant Currency Reconciliation Segment Gross Margin Three Months Ended June 30, 2024 Percentage Change Y/Y Percentage Change Y/Y (GAAP) Constant Currency Impact Constant Currency Productivity and Business Processes 9% 1% 10% Intelligent Cloud 16% 0% 16% More Personal Computing 21% 0% 21% Segment O
Slide 20: Constant Currency Reconciliation
Constant Currency Reconciliation Selected Product and Service Information Three Months Ended June 30, 2024 Percentage Change V/Y (GAAP) Constant Currency Impact Percentage ey Commercial bookings 17% 2% 19% Commercial remaining performance obligation 20% 1% 21% Microsoft Cloud revenue 21% 1% 22% Offi
Slide 21: Cash Flow Reconciliation
Cash Flow Reconciliation Three Months Ended June 30, . ane Percentage ($ in millions) 2024 2023 Change ¥/Y Net Cash from Operations (GAAP) $37,195 $28,770 29% Additions to Property and Equipment $(13,873) $(8,943) * Free Cash Flow $23,322 $19,827 18% *Not meaningful. Free cash flow is included as an
Slide 22: Microsoft
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