Slide 1: Fiscal Year 2024 Results
EE Microsoft ahalicom@ler-lac-a Fiscal Year 2024 Results Satya Nadella Amy Hood Brett Iversen April 25, 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 Q3 Financial Summary
FY24 Q3 Financial Summary ($ in billions, except per share amounts) FY24 Q3 Growth CC Growth* Productivity and Business Processes $19.6 12% 11% Intelligent Cloud $26.7 21% 21% More Personal Computing $15.6 17% 17% Revenue $61.9 17% 17% Gross margin $43.4 18% 18% Gross margin percentage 70% 1 pt Oper
Slide 5: Quarterly Commercial Highlights
Quarterly Commercial Highlights Investor Metrics FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 Commercial bookings growth (y/y) 11% / 12% (2)% / (1)% 14% / 17% 17% / 9% 29% / 31% Commercial remaining performance obligation (in billions) $196 $224 $212 $222 $235 Commercial revenue annuity mix 96% 97% 96% 9
Slide 6: FY24 Q3 Other Financial Highlights
FY24 Q3 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 + Operating expenses were $15.8 billion, up 10% year-over-year driven by 9 points from the Activision acqui
Slide 7: FY24 Q3 Business Highlights
FY24 Q3 Business Highlights Productivity é and Business Processes Intelligent Cloud More Personal ° 2 Computing * Office Commercial products and cloud services revenue increased 13% (up 12% CC) driven by Office 365 Commercial revenue growth of 15% * Office Consumer products and cloud services revenu
Slide 8: Productivity and Business Processes
Productivity and Business Processes tte Overview Investor Metrics FY23 Q3 FY23 Q4 FY24Q1 FY24 Q2 FY24 Q3 Office Commercial products and cloud services revenue growth (y/y) 13% (17% 12% { 14% 15% / 14% 15% / 13% 13% / 12% Office Consumer products and cloud services revenue growth (y/y) 1% /4% 3% / 6%
Slide 9: Productivity and Business Processes Highlights
ce Productivity and Business Processes Highlights Office Commercial LinkedIn * Office Commercial products and cloud services revenue grew 13% (up 12% CC) + LinkedIn revenue grew 10% (up 9% CC) driven by growth across all lines of business — Talent Solutions, Premium Subscriptions, Marketing Solution
Slide 10: Intelligent Cloud
Intelligent Cloud = Overview Investor Metrics FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 FY24 Q3 Server products and cloud services revenue growth (y/y) 17% [ 21% 17% { 18% 21% 22% / 20% 24% Growth rates include non-GAAP CC growth (GAAP % / CC %). $ in bill Total Revenue in billions + Revenue grew 21% driven b
Slide 11: Intelligent Cloud Highlights
Intelligent Cloud = Highlights Server Products and Cloud Services * Server products and cloud services revenue grew 24% + Azure and other cloud services revenue grew 31% driven by demand for our consumption-based services with 7 points from our Al services + Server products revenue grew 6% driven by
Slide 12: More Personal Computing
+») More Personal Computing Overview Investor Metrics FY23 Q3 Windows OEM revenue growth (y/y) (28)% Windows Commercial products and cloud services revenue growth (y/y) 14% / 18% Devices revenue growth (y/y) (30)% / (26)% Xbox content and services revenue growth (y/y) 3% / 5% Search and news adverti
Slide 13: Net impact from the Activision acquisition
Net impact from the Activision acquisition FY24 Q3 Net Impact from ($ in billions) Activision Revenue $1.97 Purchase accounting adjustments, $0.67 integration and transaction-related costs : Other cost of revenue $0.31 Cost of revenue $0.98 Gross margin $0.99 Purchase accounting adjustments, $0.27 i
Slide 14: More Personal Computing Highlights
+2) More Personal Computing Highlights Windows + Windows OEM revenue grew 11% against a low prior year comparable, with PC market volumes continuing at pre-pandemic levels + Windows Commercial products and cloud services revenue grew 13% (up 12% CC) driven by demand for Microsoft 365 Devices + Devic
Slide 15: Appendix
Appendix
Slide 16: Reconciliation of GAAP and Non-GAAP Financial Measures
Reconciliation of GAAP and Non-GAAP Financial Measures Our presentation of third-quarter performance includes non-GAAP financial measures. The following slides provide reconciliations between the GAAP and non-GAAP financial measures presented: + Constant currency reconciliations * Cash flow reconcil
Slide 17: Constant Currency Reconciliation
Constant Currency Reconciliation Three Months Ended March 31, rn Gross Operating Operating Net Dilut ed ($ in millions, except per share amounts) Revenue . Earnings Margin Expenses Income Income per Share 2023 As Reported (GAAP) $52,857 $36,729 $14,377 $22,352 $18,299 $2.45 2024 As Reported (GAAP) $
Slide 18: Constant Currency Reconciliation: Segment Revenue
Constant Currency Reconciliation Segment Revenue Three Months Ended March 31, in millions) Productivity and Intelligent More Personal Business Processes Cloud Computing 2023 As Reported (GAAP) $17,516 $22,081 $13,260 2024 As Reported (GAAP) $19,570 $26,708 $15,580 Percentage Change Y/Y (GAAP) 12% 21
Slide 19: Constant Currency Reconciliation: Segment Margin and Income
Constant Currency Reconciliation Segment Gross Margin Three Months Ended March 31, 2024 Percentage Change Y/Y Percentage Change Y/Y (GAAP) Constant Currency Impact Constant Currency Productivity and Business Processes 11% 0% 11% Intelligent Cloud 20% 0% 20% More Personal Computing 27% (1)% 26% Segme
Slide 20: Constant Currency Reconciliation: Product and Service Information
Constant Currency Reconciliation Selected Product and Service Information Three Months Ended March 31, 2024 Percentage Change V/Y (GAAP) Constant Currency Impact Percentage ey Commercial bookings 29% 2% 31% Commercial remaining performance obligation 20% 1% 21% Microsoft Cloud revenue 23% 0% 23% Off
Slide 21: Cash Flow Reconciliation
Cash Flow Reconciliation Three Months Ended March 31, . ane Percentage ( in millions) 2024 2023 Change Y/Y Net Cash from Operations (GAAP) $31,917 $24,441 31% Additions to Property and Equipment $(10,952) $(6,607) * Free Cash Flow $20,965 $17,834 18% *Not meaningful. Free cash flow is included as an
Slide 22: Microsoft
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