StreetsofBeige
Gold Member
(MS's fiscal calendar is different than the standard calendar year)
As a whole company $37 billion sales, $14 billion net profit.
Earnings Release FY21 Q1
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.
Responding to COVID-19
At Microsoft, our focus remains on ensuring the safety of our employees, striving to protect the health and well-being of the communities in which we operate, and providing technology and resources to our customers and partners to help them do their best work while remote. Additional information about Microsoft’s COVID-19 response can be found here.
Environmental, Social, and Governance (ESG)
To better execute on Microsoft’s mission, we focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our investor relations ESG website.
Webcast Details
Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, deputy general counsel, and Michael Spencer, general manager 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 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 October 27, 2021.
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
Segment Revenue Constant Currency Reconciliation
Selected Product and Service Revenue Constant Currency Reconciliation
As a whole company $37 billion sales, $14 billion net profit.
Earnings Release FY21 Q1
- · Server products and cloud services revenue increased 22% (up 21% in constant currency) driven by Azure revenue growth of 48% (up 47% in constant currency)
- · Windows OEM revenue declined 5%
- · Windows Commercial products and cloud services revenue increased 13% (up 12% in constant currency)
- · Xbox content and services revenue increased 30%
- · Surface revenue increased 37% (up 36%in constant currency)
- · Search advertising revenue excluding traffic acquisition costs decreased 10% (down 11% in constant currency)
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.
Responding to COVID-19
At Microsoft, our focus remains on ensuring the safety of our employees, striving to protect the health and well-being of the communities in which we operate, and providing technology and resources to our customers and partners to help them do their best work while remote. Additional information about Microsoft’s COVID-19 response can be found here.
Environmental, Social, and Governance (ESG)
To better execute on Microsoft’s mission, we focus our Environmental, Social, and Governance (ESG) efforts where we can have the most positive impact. To learn more about our latest initiatives and priorities, please visit our investor relations ESG website.
Webcast Details
Satya Nadella, chief executive officer, Amy Hood, executive vice president and chief financial officer, Alice Jolla, chief accounting officer, Keith Dolliver, deputy general counsel, and Michael Spencer, general manager 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 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 October 27, 2021.
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 September 30, | ||||
|---|---|---|---|---|
| ($ in millions, except per share amounts) | Revenue | Operating Income | Net Income | Diluted Earnings per Share |
| 2019 As Reported | $33,055 | $12,686 | $10,678 | $1.38 |
| 2020 As Reported | $37,154 | $15,876 | $13,893 | $1.82 |
| Percentage Change Y/Y | 12% | 25% | 30% | 32% |
| Constant Currency Impact | $108 | $71 | $231 | $0.03 |
| Percentage Change Y/Y Constant Currency | 12% | 25% | 28% | 30% |
Three Months Ended September 30, | |||
|---|---|---|---|
| ($ in millions) | Productivity and Business Processes | Intelligent Cloud | More Personal Computing |
| 2019 As Reported | $11,077 | $10,845 | $11,133 |
| 2020 As Reported | $12,319 | $12,986 | $11,849 |
| Percentage Change Y/Y | 11% | 20% | 6% |
| Constant Currency Impact | $32 | $42 | $34 |
| Percentage Change Y/Y Constant Currency | 11% | 19% | 6% |
Three Months Ended September 30, 2020 | |||
|---|---|---|---|
Percentage Change Y/Y (GAAP) | Constant Currency Impact | Percentage Change Y/Y Constant Currency | |
| Office Commercial products and cloud services | 9% | 0% | 9% |
| Office 365 Commercial | 21% | (1)% | 20% |
| Office Consumer products and cloud services | 13% | 0% | 13% |
16% | 0% | 16% | |
| Dynamics products and cloud services | 19% | (1)% | 18% |
| Dynamics 365 | 38% | (1)% | 37% |
| Server products and cloud services | 22% | (1)% | 21% |
| Azure | 48% | (1)% | 47% |
| Windows OEM | (5)% | 0% | (5)% |
| Windows Commercial products and cloud services | 13% | (1)% | 12% |
| Xbox content and services | 30% | 0% | 30% |
| Surface | 37% | (1)% | 36% |
| Search advertising excluding traffic acquisition costs | (10)% | (1)% | (11)% |
