Microsoft Corp. today announced the following results for the quarter ended December 31, 2023, as compared to the corresponding period of last fiscal year:
– Revenue was $62.0 billion and increased 18 percent (up 16 percent in constant currency)
– Operating income was $27.0 billion and increased 33 percent, and increased 25 percent non-GAAP (up 23 percent in constant currency)
– Net income was $21.9 billion and increased 33 percent, and increased 26 percent non-GAAP (up 23 percent in constant currency)
– Diluted earnings per share was $2.93 and increased 33 percent, and increased 26 percent non-GAAP (up 23 percent in constant currency)
Microsoft completed the acquisition of Activision Blizzard, Inc. (“Activision”) on October 13, 2023. Financial results from the acquired business are reported in the More Personal Computing segment.
“We’ve moved from talking about AI to applying AI at scale,” said Satya Nadella, chairman and chief executive officer of Microsoft. “By infusing AI across every layer of our tech stack, we’re winning new customers and helping drive new benefits and productivity gains across every sector.”
“Strong execution by our sales teams and partners drove Microsoft Cloud revenue to $33.7 billion, up 24 percent (up 22 percent in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
Revenue in Productivity and Business Processes was $19.2 billion and increased 13 percent (up 12 percent in constant currency), with the following business highlights:
· Office Commercial products and cloud services revenue increased 15 percent (up 13% percentin constant currency) driven by Office 365 Commercial revenue growth of 17% (up 16% in constant currency)
· Office Consumer products and cloud services revenue increased 5 percent (up 4 percent in constant currency) and Microsoft 365 Consumer subscribers grew to 78.4 million
· LinkedIn revenue increased 9 percent (up 8 percent in constant currency)
· Dynamics products and cloud services revenue increased 21 percent (up 19 percent in constant currency) driven by Dynamics 365 revenue growth of 27 percent (up 24% in constant currency)
Revenue in Intelligent Cloud was $25.9 billion and increased 20 percent (up 19 percent in constant currency), with the following business highlights:
· Server products and cloud services revenue increased 22 percent (up 20 percent in constant currency) driven by Azure and other cloud services revenue growth of 30% (up 28% in constant currency)
Revenue in More Personal Computing was $16.9 billion and increased 19 percent (up 18 percent in constant currency), with the following business highlights:
· Windows revenue increased 9 percent with Windows OEM revenue growth of 11% and Windows Commercial products and cloud services revenue growth of 9 percent (up 7 percent in constant currency)
· Devices revenue decreased 9% (down 10% in constant currency)
· Xbox content and services revenue increased 61% (up 60% in constant currency) driven by 55 points of net impact from the Activision acquisition
· Search and news advertising revenue excluding traffic acquisition costs increased 8 percent (up 7 percent in constant currency)
Microsoft returned $8.4 billion to shareholders in the form of share repurchases and dividends in the second quarter of fiscal year 2024.