MSFT Microsoft Corporation

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) July 30, 2024

Microsoft Corporation

Washington		001-37845		91-1144442
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

One Microsoft Way, Redmond, Washington 98052-6399

(425) 882-8080

www.microsoft.com/investor

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:
Title of each class		Trading Symbol		Name of exchange on which registered
Common stock, $0.00000625 par value per share		MSFT		Nasdaq
3.125% Notes due 2028		MSFT		Nasdaq
2.625% Notes due 2033		MSFT		Nasdaq

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

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Item 2.02.	Results of Operations and Financial Condition

On July 30, 2024, Microsoft Corporation issued a press release announcing its financial results for the fiscal quarter and year ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this report.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01.	Financial Statements and Exhibits

(d) Exhibits:

	99.1	Press release, dated July 30, 2024, issued by Microsoft Corporation
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		MICROSOFT CORPORATION
		(Registrant)
Date: July 30, 2024		/s/ ALICE L. JOLLA
		Alice L. Jolla
		Corporate Vice President and Chief Accounting Officer

 

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Exhibit 99.1

Microsoft Cloud Strength Drives Fourth Quarter Results

REDMOND, Wash. — July 30, 2024 — Microsoft Corp. today announced the following results for the quarter ended June 30, 2024, as compared to the corresponding period of last fiscal year:

“Our strong performance this fiscal year speaks both to our innovation and to the trust customers continue to place in Microsoft,” said Satya Nadella, chairman and chief executive officer of Microsoft. “As a platform company, we are focused on meeting the mission-critical needs of our customers across our at-scale platforms today, while also ensuring we lead the AI era.”

“We closed out our fiscal year with a solid quarter, highlighted by record bookings and Microsoft Cloud quarterly revenue of $36.8 billion, up 21% (up 22% in constant currency) year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

Business Highlights

Revenue in Productivity and Business Processes was $20.3 billion and increased 11% (up 12% in constant currency), with the following business highlights:

Revenue in Intelligent Cloud was $28.5 billion and increased 19% (up 20% in constant currency), with the following business highlights:

Revenue in More Personal Computing was $15.9 billion and increased 14% (up 15% in constant currency), with the following business highlights:

Microsoft returned $8.4 billion to shareholders in the form of share repurchases and dividends in the fourth quarter of fiscal year 2024.

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Fiscal Year 2024 Results

Microsoft Corp. today announced the following results for the fiscal year ended June 30, 2024, as compared to the corresponding period of last fiscal year:

The following table reconciles our financial results for the fiscal year ended June 30, 2024, reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. Additional information regarding our non-GAAP definition is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.

 

		Twelve Months Ended June 30,
($ in millions, except per share amounts)		Revenue		Operating Income		Net Income		Diluted Earnings per Share
2023 As Reported (GAAP)		$211,915		$88,523		$72,361		$9.68
Severance, hardware-related impairment, and lease consolidation costs		-		1,171		946		0.13
2023 As Adjusted (non-GAAP)		$211,915		$89,694		$73,307		$9.81
2024 As Reported (GAAP)		$245,122		$109,433		$88,136		$11.80
Percentage Change Y/Y (GAAP)		16%		24%		22%		22%
Percentage Change Y/Y Constant Currency		15%		23%		21%		21%
Percentage Change Y/Y (non-GAAP)		16%		22%		20%		20%
Percentage Change Y/Y (non-GAAP) Constant Currency		15%		21%		20%		20%

Business Outlook

Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast.

Quarterly Highlights, Product Releases, and Enhancements

Every quarter Microsoft delivers hundreds of products, either as new releases, services, or enhancements to current products and services. These releases are a result of significant research and development investments, made over multiple years, designed to help customers be more productive and secure and to deliver differentiated value across the cloud and the edge.

Here are the major product releases and other highlights for the quarter, organized by product categories, to help illustrate how we are accelerating innovation across our businesses while expanding our market opportunities.

Environmental, Social, and Governance (ESG)

To learn more about Microsoft’s corporate governance and our environmental and social practices, please visit our investor relations Board and ESG website and reporting at Microsoft.com/transparency.

Webcast Details

Satya Nadella, chairman and chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, corporate secretary and deputy general counsel, and Brett Iversen, vice president of investor relations, will host a conference call and webcast at 2:30 p.m. Pacific time (5:30 p.m. Eastern time) today to discuss details of the company’s performance for the quarter and certain forward-looking

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information. The session may be accessed at http://www.microsoft.com/en-us/investor. The webcast will be available for replay through the close of business on July 30, 2025.

Non-GAAP Definition

Q2 charge. In the second quarter of fiscal year 2023, Microsoft recorded costs related to decisions announced on January 18th, 2023, including employee severance expenses, impairment charges resulting from changes to our hardware portfolio, and costs related to lease consolidation activities.

Microsoft has provided non-GAAP financial measures related to the Q2 charge to aid investors in better understanding our performance. Microsoft believes these non-GAAP measures assist investors by providing additional insight into its operational performance and help clarify trends affecting its business. For comparability of reporting, management considers non-GAAP measures in conjunction with GAAP financial results in evaluating business performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Constant Currency

Microsoft presents constant currency information to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. To present this information, current and comparative prior period results for entities reporting in currencies other than United States dollars are converted into United States dollars using the average exchange rates from the comparative period rather than the actual exchange rates in effect during the respective periods. All growth comparisons relate to the corresponding period in the last fiscal year. Microsoft has provided this non-GAAP financial information to aid investors in better understanding our performance. The non-GAAP financial measures presented in this release should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP.

Financial Performance Constant Currency Reconciliation

		Three Months Ended June 30,
($ in millions, except per share amounts)		Revenue		Operating Income		Net Income		Diluted Earnings per Share
2023 As Reported (GAAP)		$56,189		$24,254		$20,081		$2.69
2024 As Reported (GAAP)		$64,727		$27,925		$22,036		$2.95
Percentage Change Y/Y (GAAP)		15%		15%		10%		10%
Constant Currency Impact		$(345)		$(218)		$(269)		$(0.04)
Percentage Change Y/Y Constant Currency		16%		16%		11%		11%

 

		Twelve Months Ended June 30,
($ in millions, except per share amounts)		Revenue		Operating Income		Net Income		Diluted Earnings per Share
2023 As Reported (GAAP)		$211,915		$88,523		$72,361		$9.68
2023 As Adjusted (non-GAAP)		$211,915		$89,694		$73,307		$9.81
2024 As Reported (GAAP)		$245,122		$109,433		$88,136		$11.80
Percentage Change Y/Y (GAAP)		16%		24%		22%		22%
Percentage Change Y/Y (non-GAAP)		16%		22%		20%		20%
Constant Currency Impact		$900		$717		$312		$0.04
Percentage Change Y/Y Constant Currency		15%		23%		21%		21%
Percentage Change Y/Y (non-GAAP) Constant Currency		15%		21%		20%		20%

 

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Segment Revenue Constant Currency Reconciliation

		Three Months Ended June 30,
($ in millions)		Productivity and Business Processes		Intelligent Cloud		More Personal 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%		14%
Constant Currency Impact		$(106)		$(174)		$(65)
Percentage Change Y/Y Constant Currency		12%		20%		15%

Selected Product and Service Revenue Constant Currency Reconciliation

		Three Months Ended June 30, 2024
		Percentage Change Y/Y (GAAP)		Constant Currency Impact		Percentage Change Y/Y Constant Currency
Microsoft Cloud		21%		1%		22%
Office Commercial products and cloud services		12%		1%		13%
Office 365 Commercial		13%		1%		14%
Office Consumer products and cloud services		3%		1%		4%
LinkedIn		10%		(1)%		9%
Dynamics products and cloud services		16%		0%		16%
Dynamics 365		19%		1%		20%
Server products and cloud services		21%		1%		22%
Azure and other cloud services		29%		1%		30%
Windows		7%		1%		8%
Windows OEM		4%		0%		4%
Windows Commercial products and cloud services		11%		1%		12%
Devices		(11)%		2%		(9)%
Xbox content and services		61%		0%		61%
Search and news advertising excluding traffic acquisition costs		19%		0%		19%

 

About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of our customers. The technology company is committed to making AI available broadly and doing so responsibly, with a mission to empower every person and every organization on the planet to achieve more.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

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For more information about risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations website at http://www.microsoft.com/en-us/investor.

All information in this release is as of June 30, 2024. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

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For more information, press only:

Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, rrt@we-worldwide.com

For more information, financial analysts and investors only:

Brett Iversen, Vice President, Investor Relations, (425) 706-4400

Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at http://www.microsoft.com/news. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Shareholder and financial information, as well as today’s 2:30 p.m. Pacific time conference call with investors and analysts, is available at http://www.microsoft.com/en-us/investor.

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MICROSOFT CORPORATION

 

INCOME STATEMENTS

(In millions, except per share amounts) (Unaudited)

 

		Three Months Ended June 30,				Twelve Months Ended June 30,
		2024		2023		2024		2023
Revenue:
Product		$13,217		$16,853		$64,773		$64,699
Service and other		51,510		39,336		180,349		147,216
Total revenue		64,727		56,189		245,122		211,915
Cost of revenue:
Product		1,438		3,871		15,272		17,804
Service and other		18,246		12,924		58,842		48,059
Total cost of revenue		19,684		16,795		74,114		65,863
Gross margin		45,043		39,394		171,008		146,052
Research and development		8,056		6,739		29,510		27,195
Sales and marketing		6,816		6,204		24,456		22,759
General and administrative		2,246		2,197		7,609		7,575
Operating income		27,925		24,254		109,433		88,523
Other income (expense), net		(675)		473		(1,646)		788
Income before income taxes		27,250		24,727		107,787		89,311
Provision for income taxes		5,214		4,646		19,651		16,950
Net income		$22,036		$20,081		$88,136		$72,361
Earnings per share:
Basic		$2.96		$2.70		$11.86		$9.72
Diluted		$2.95		$2.69		$11.80		$9.68
Weighted average shares outstanding:
Basic		7,433		7,434		7,431		7,446
Diluted		7,472		7,467		7,469		7,472

 

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COMPREHENSIVE INCOME STATEMENTS

(In millions) (Unaudited)

 

		Three Months Ended				Twelve Months Ended
		June 30,				June 30,
		2024		2023		2024		2023
Net income		$22,036		$20,081		$88,136		$72,361
Other comprehensive income (loss), net of tax:
Net change related to derivatives		(4)		20		24		(14)
Net change related to investments		88		(648)		957		(1,444)
Translation adjustments and other		(239)		(71)		(228)		(207)
Other comprehensive income (loss)		(155)		(699)		753		(1,665)
Comprehensive income		$21,881		$19,382		$88,889		$70,696

 

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BALANCE SHEETS

(In millions) (Unaudited)

 

		June 30, 2024		June 30, 2023
Assets
Current assets:
Cash and cash equivalents		$18,315		$34,704
Short-term investments		57,228		76,558
Total cash, cash equivalents, and short-term investments		75,543		111,262
Accounts receivable, net of allowance for doubtful accounts of $830 and $650		56,924		48,688
Inventories		1,246		2,500
Other current assets		26,021		21,807
Total current assets		159,734		184,257
Property and equipment, net of accumulated depreciation of $76,421 and $68,251		135,591		95,641
Operating lease right-of-use assets		18,961		14,346
Equity and other investments		14,600		9,879
Goodwill		119,220		67,886
Intangible assets, net		27,597		9,366
Other long-term assets		36,460		30,601
Total assets		$512,163		$411,976
Liabilities and stockholders' equity
Current liabilities:
Accounts payable		$21,996		$18,095
Short-term debt		6,693		0
Current portion of long-term debt		2,249		5,247
Accrued compensation		12,564		11,009
Short-term income taxes		5,017		4,152
Short-term unearned revenue		57,582		50,901
Other current liabilities		19,185		14,745
Total current liabilities		125,286		104,149
Long-term debt		42,688		41,990
Long-term income taxes		27,931		25,560
Long-term unearned revenue		2,602		2,912
Deferred income taxes		2,618		433
Operating lease liabilities		15,497		12,728
Other long-term liabilities		27,064		17,981
Total liabilities		243,686		205,753
Commitments and contingencies
Stockholders' equity:
Common stock and paid-in capital - shares authorized 24,000; outstanding 7,434 and 7,432		100,923		93,718
Retained earnings		173,144		118,848
Accumulated other comprehensive loss		(5,590)		(6,343)
Total stockholders' equity		268,477		206,223
Total liabilities and stockholders' equity		$512,163		$411,976

 

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CASH FLOWS STATEMENTS

(In millions) (Unaudited)

 

		Three Months Ended				Twelve Months Ended
		June 30,				June 30,
		2024		2023		2024		2023
Operations
Net income		$22,036		$20,081		$88,136		$72,361
Adjustments to reconcile net income to net cash from operations:
Depreciation, amortization, and other		6,380		3,874		22,287		13,861
Stock-based compensation expense		2,696		2,416		10,734		9,611
Net recognized losses on investments and derivatives		44		44		305		196
Deferred income taxes		(1,145)		(1,888)		(4,738)		(6,059)
Changes in operating assets and liabilities:
Accounts receivable		(13,246)		(11,244)		(7,191)		(4,087)
Inventories		55		374		1,284		1,242
Other current assets		(2,528)		(2,419)		(1,648)		(1,991)
Other long-term assets		(1,240)		(1,548)		(6,817)		(2,833)
Accounts payable		4,204		1,311		3,545		(2,721)
Unearned revenue		15,657		14,224		5,348		5,535
Income taxes		(806)		681		1,687		(358)
Other current liabilities		4,652		2,762		4,867		2,272
Other long-term liabilities		436		102		749		553
Net cash from operations		37,195		28,770		118,548		87,582
Financing
Proceeds from issuance (repayments) of debt, maturities of 90 days or less, net		(1,142)		0		5,250		0
Proceeds from issuance of debt		197		0		24,395		0
Repayments of debt		(13,065)		(1,000)		(29,070)		(2,750)
Common stock issued		534		512		2,002		1,866
Common stock repurchased		(4,210)		(5,704)		(17,254)		(22,245)
Common stock cash dividends paid		(5,574)		(5,054)		(21,771)		(19,800)
Other, net		(303)		(167)		(1,309)		(1,006)
Net cash used in financing		(23,563)		(11,413)		(37,757)		(43,935)
Investing
Additions to property and equipment		(13,873)		(8,943)		(44,477)		(28,107)
Acquisition of companies, net of cash acquired, and purchases of intangible and other assets		(1,342)		(341)		(69,132)		(1,670)
Purchases of investments		(2,831)		(11,976)		(17,732)		(37,651)
Maturities of investments		1,557		6,766		24,775		33,510
Sales of investments		2,023		5,629		10,894		14,354
Other, net		(382)		(269)		(1,298)		(3,116)
Net cash used in investing		(14,848)		(9,134)		(96,970)		(22,680)
Effect of foreign exchange rates on cash and cash equivalents		(103)		(81)		(210)		(194)
Net change in cash and cash equivalents		(1,319)		8,142		(16,389)		20,773
Cash and cash equivalents, beginning of period		19,634		26,562		34,704		13,931
Cash and cash equivalents, end of period		$18,315		$34,704		$18,315		$34,704

 

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SEGMENT REVENUE AND OPERATING INCOME

(In millions) (Unaudited)

 

		Three Months Ended				Twelve Months Ended
		June 30,				June 30,
		2024		2023		2024		2023
Revenue
Productivity and Business Processes		$20,317		$18,291		$77,728		$69,274
Intelligent Cloud		28,515		23,993		105,362		87,907
More Personal Computing		15,895		13,905		62,032		54,734
Total		$64,727		$56,189		$245,122		$211,915
Operating Income
Productivity and Business Processes		$10,143		$9,052		$40,540		$34,189
Intelligent Cloud		12,859		10,526		49,584		37,884
More Personal Computing		4,923		4,676		19,309		16,450
Total		$27,925		$24,254		$109,433		$88,523

 

 

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v3.24.2

Document and Entity Information	Jul. 30, 2024
Entity Information [Line Items]
Document Type	8-K
Document Period End Date	Jul. 30, 2024
Entity Registrant Name	Microsoft Corporation
Entity Incorporation, State or Country Code	WA
Entity File Number	001-37845
Entity Tax Identification Number	91-1144442
Entity Address, Address Line One	One Microsoft Way
Entity Address, City or Town	Redmond
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98052-6399
City Area Code	425
Local Phone Number	882-8080
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Central Index Key	0000789019
Common Stock [Member]
Entity Information [Line Items]
Title of 12(b) Security	Common stock, $0.00000625 par value per share
Trading Symbol	MSFT
Security Exchange Name	NASDAQ
3.125% Notes Due 2028 [Member]
Entity Information [Line Items]
Title of 12(b) Security	3.125% Notes due 2028
Trading Symbol	MSFT
Security Exchange Name	NASDAQ
2.625% Notes Due 2033 [Member]
Entity Information [Line Items]
Title of 12(b) Security	2.625% Notes due 2033
Trading Symbol	MSFT
Security Exchange Name	NASDAQ

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