Shulou(Shulou.com)11/24 Report--

Thank you, Mr. Air, a netizen of CTOnews.com, for your clue delivery! Beijing time on July 26 morning news, Microsoft today released the company's fiscal year 2023 fourth quarter and full-year results.

According to the report, Microsoft's fourth-quarter revenue was $56.189 billion, up 8% from $51.865 billion in the same period last year, 10% year-on-year growth excluding exchange rate changes, and net profit of $20.081 billion, up 20% from $16.74 billion in the same period last year. excluding exchange rate changes, the increase was 23% year-on-year. Diluted earnings per share were $2.69, up 21% from $2.23 a year earlier, and 23% year-on-year, excluding exchange rate changes.

Microsoft's adjusted earnings per share and revenue beat Wall Street analysts' expectations in the fourth quarter, but the outlook for revenue in the first quarter of 2024 fell short of expectations, causing its shares to fall nearly 4 per cent in after-hours trading.

Main results for the fourth quarter: Microsoft's net profit for the quarter ended June 30 was $20.081 billion, or $2.69 per diluted share, better than a year earlier and ahead of analysts' expectations. Microsoft's net income in the fourth quarter of fiscal 2022 was $16.74 billion, or $2.23 per diluted share. According to data provided by Yahoo Finance Channel, 36 analysts had expected Microsoft to earn $2.29 per share in the fourth quarter.

Microsoft's fourth-quarter net profit rose 20% compared with the same period last year, excluding exchange rate changes, 21% year-on-year growth; diluted earnings per share increased 20% compared with the same period last year, excluding exchange rate changes, 23% year-on-year growth.

Microsoft's fourth-quarter revenue was $56.189 billion, up 8% from $51.865 billion a year earlier, and up 10% year-on-year, excluding currency changes, which also beat analysts' expectations. According to data provided by Yahoo Finance Channel, 34 analysts had expected Microsoft to generate revenue of $49.86 billion in the fourth quarter.

Microsoft's fourth-quarter operating profit was $24.254 billion, up 18% from $20.534 billion a year earlier, and up 21% year-on-year, excluding exchange rate changes.

Fourth quarter results by division: Microsoft's revenue from the products business was $16.853 billion in the fourth quarter, compared with $17.956 billion a year earlier, and revenue from services and other businesses was $39.336 billion, compared with $33.909 billion a year earlier.

By specific business unit: revenue from Microsoft's productivity and business process division was $18.291 billion in the fourth quarter of fiscal 2023, compared with $16.6 billion in the same period last year, a year-on-year increase of 10%, excluding exchange rate changes. Operating profit was $9.052 billion, compared with $7.236 billion a year earlier. Within this department: (1) revenue from Office commercial products and cloud services increased by 12% year-on-year, 14% year-on-year excluding exchange rate changes, mainly driven by a 15% year-on-year increase in revenue from commercial Office 365 (17% year-on-year growth excluding exchange rate changes); (2) revenue from Office personal products and cloud services increased by 3% year-on-year, excluding exchange rate changes. In this fiscal quarter, the number of subscribers of the personal version increased to 67 million; (3) LinkedIn revenue increased by 5% year-on-year, which increased by 7% year-on-year, excluding exchange rate changes; and (4) revenue from Dynamics products and cloud services increased by 19% year-on-year, which was 21% year-on-year excluding exchange rate changes, mainly driven by a 26% year-on-year increase in Dynamics 365 revenue (28% year-on-year growth excluding exchange rate changes).

-the revenue of Microsoft's smart cloud division in the fourth quarter was $23.993 billion, compared with $20.804 billion in the same period last year, an increase of 15% year-on-year, 17% year-on-year growth excluding exchange rate changes, and operating profit of $10.526 billion, compared with $8.808 billion in the same period last year. Within this department, revenue from server products and cloud services increased by 17% year-on-year, 18% year-on-year excluding exchange rate changes, mainly driven by a 26% year-on-year increase in revenue from Azure and other cloud services (27% year-on-year growth excluding exchange rate changes).

-revenue from Microsoft's more personal computing business in the fourth quarter was $13.905 billion, compared with $14.461 billion in the same period last year, down 4% from a year earlier, excluding exchange rate changes, down 3% from a year earlier; operating profit was $4.676 billion, compared with $4.49 billion a year earlier. Within this division: (1) Windows OEM (original equipment manufacturing) revenue decreased by 12% compared with the same period last year; (2) equipment revenue decreased by 20% compared with the same period last year, which decreased by 18% year-on-year excluding exchange rate changes; and (3) revenue from Windows commercial products and cloud services increased by 2% year-on-year, excluding exchange rate changes. (4) Xbox content and service revenue increased by 5% year-on-year, excluding exchange rate changes, 6% year-on-year growth; (5) search and news advertising revenue (excluding traffic acquisition costs) increased by 8% year-on-year.

Other financial information in the fourth quarter: Microsoft's total revenue cost in the fourth quarter was $16.795 billion, compared with $16.429 billion in the same period last year. Of this total, product revenue costs were $3.871 billion, compared with $4.357 billion in the same period last year, and services and other revenue costs were $12.924 billion, compared with $12.072 billion in the same period last year. Microsoft's fourth-quarter gross profit was $39.394 billion, compared with $35.436 billion a year earlier.

Microsoft spent $6.739 billion on research and development in the fourth quarter, compared with $6.849 billion in the same period last year; $6.204 billion in sales and marketing, compared with $6.304 billion in the same period last year; and $2.197 billion in general and administrative expenses, compared with $1.749 billion in the same period last year.

In the fourth quarter, Microsoft returned $9.7 billion in cash to shareholders through share buybacks and dividends.

Full-year results for fiscal 2023: for the entire fiscal year 2023, Microsoft's revenue was $211.915 billion, an increase of 7% compared to $198.27 billion in fiscal 2022, and an 11% year-on-year increase excluding currency changes. Excluding some one-time items (not in accordance with GAAP), Microsoft's adjusted revenue in fiscal 2023 was also $211.915 billion, up 7% from $198.27 billion in fiscal 2022, and 11% year-on-year growth excluding exchange rate changes, exceeding analysts' expectations. On average, 49 analysts had expected Microsoft's revenue to reach $189.96 billion in fiscal 2023, according to data provided by Yahoo Finance.

Microsoft's operating profit for fiscal 2023 was $88.523 billion, up 6% from $83.383 billion in fiscal 2022, and 12% year-on-year, excluding currency changes. Excluding some one-time items (not in accordance with GAAP), Microsoft's adjusted operating profit for fiscal 2023 was $89.694 billion, up 8% from $83.383 billion in fiscal 2022, and 14% year-on-year excluding exchange rate changes.

Microsoft's net profit for fiscal 2023 was $72.361 billion, down 1 per cent from $72.738 billion in fiscal 2022, and rose 5 per cent year-on-year, excluding currency changes. Excluding some one-time items (not in accordance with GAAP), Microsoft's adjusted net profit for fiscal 2023 was $73.307 billion, up 6% from $69.447 billion in fiscal 2022, and 11% year-on-year excluding exchange rate changes.

Microsoft's diluted earnings per share in fiscal 2023 was $9.68, which was basically the same as that of $9.65 in fiscal 2022. Excluding the impact of exchange rate changes, Microsoft's diluted earnings per share increased by 6% compared with the same period last year. Excluding some one-time items (not in accordance with GAAP), Microsoft's adjusted diluted earnings per share in fiscal 2023 was $9.81, up 7% from $9.21 in fiscal 2022, and 12% year-on-year growth excluding exchange rate changes, exceeding analysts' expectations. 21 analysts had expected Microsoft's adjusted diluted earnings per share to reach $8.70 per share in fiscal 2023, according to data provided by Yahoo Finance.

Performance outlook: in a conference call with analysts after the announcement, Microsoft CFO Amy Hood said that the company's revenue for the first quarter of fiscal 2024 is expected to be between $53.8 billion and $54.8 billion, with a median range of $54.3 billion, up 8% from revenue in the first quarter of fiscal 2023, but that outlook failed to meet analysts' expectations. According to Refinitiv, a provider of financial market data and infrastructure, analysts on average expect Microsoft to generate $54.94 billion in revenue in the first quarter of fiscal 2024.

In addition, the performance of the operating department, which features the Windows operating system, is expected to be lower than expected. Mr. Hood expects the division to generate revenue of between $12.5 billion and $12.9 billion in the first quarter of fiscal 2024. Analysts had on average expected revenue of $13.22 billion in the first quarter, according to analyst firm StreetAccount.

Share price reaction: Microsoft shares rose $5.87, or 1.70%, to close at $350.98 in regular Nasdaq trading.

Microsoft shares fell 3.73 per cent, or $13.08, to $337.90 in after-hours trading as of 06:16 EDT on Tuesday (06:16 Beijing time on Wednesday).

In the past 52 weeks, Microsoft's highest price is $366.78 and the lowest price is $213.43.

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