EX-99.1 2 d875975dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Microsoft Commercial Strength Powers Second Quarter Results

REDMOND, Wash. — January 29, 2020 — Microsoft Corp. today announced the following results for the quarter ended December 31, 2019, as compared to the corresponding period of last fiscal year:

 

   

Revenue was $36.9 billion and increased 14%

   

Operating income was $13.9 billion and increased 35%

   

Net income was $11.6 billion and increased 38% GAAP and 36% non-GAAP

   

Diluted earnings per share was $1.51 and increased 40% GAAP and 37% non-GAAP

“We are innovating across every layer of our differentiated technology stack and leading in key secular areas that are critical to our customers’ success,” said Satya Nadella, chief executive officer of Microsoft. “Along with our expanding opportunity, we are working to ensure the technology we build is inclusive, trusted and creates a more sustainable world, so every person and every organization can benefit.”

The following table reconciles our financial results 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.

 

     

Three Months Ended December 31,

 

 

   ($ in millions, except per share amounts)

 

  

  Revenue  

 

    

  Operating  
  Income  

 

    

  Net Income  

 

    

  Diluted  
  Earnings per  
  Share  

 

 

  2018 As Reported (GAAP)

  

 

$32,471

 

  

 

$10,258

 

  

 

$8,420

 

  

 

$1.08

 

  Net Impact of the Tax Cuts and Jobs Act (TCJA)

  

 

-

 

  

 

-

 

  

 

157

 

  

 

0.02

 

  2018 As Adjusted (non-GAAP)

  

 

$32,471

 

  

 

$10,258

 

  

 

$8,577

 

  

 

$1.10

 

  2019 As Reported (GAAP)

  

 

$36,906

 

  

 

$13,891

 

  

 

$11,649

 

  

 

$1.51

 

  Percentage Change Y/Y (GAAP)

  

 

14%

 

  

 

35%

 

  

 

38%

 

  

 

40%

 

  Percentage Change Y/Y (non-GAAP)

  

 

14%

 

  

 

35%

 

  

 

36%

 

  

 

37%

 

  Percentage Change Y/Y (non-GAAP) Constant Currency

  

 

15%

 

  

 

39%

 

  

 

39%

 

  

 

41%

 

GAAP results include a net income tax charge related to the TCJA of $157 million for the second quarter of fiscal year 2019. This net income tax charge is excluded from our non-GAAP results.

Microsoft returned $8.5 billion to shareholders in the form of share repurchases and dividends in the second quarter of fiscal year 2020.

“Strong execution from our sales teams and partners drove Commercial Cloud revenue to $12.5 billion, up 39% year over year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.

Revenue in Productivity and Business Processes was $11.8 billion and increased 17% (up 19% in constant currency), with the following business highlights:

 

   

Office Commercial products and cloud services revenue increased 16% (up 18% in constant currency) driven by Office 365 Commercial revenue growth of 27% (up 30% in constant currency)

   

Office Consumer products and cloud services revenue increased 19% (up 20% in constant currency) with continued growth in Office 365 Consumer subscribers to 37.2 million


   

LinkedIn revenue increased 24% (up 26% in constant currency)

   

Dynamics products and cloud services revenue increased 12% (up 15% in constant currency) driven by Dynamics 365 revenue growth of 42% (up 45% in constant currency)

Revenue in Intelligent Cloud was $11.9 billion and increased 27% (up 28% in constant currency), with the following business highlights:

 

   

Server products and cloud services revenue increased 30% (up 32% in constant currency) driven by Azure revenue growth of 62% (up 64% in constant currency)

   

Enterprise Services revenue increased 6% (up 7% in constant currency)

Revenue in More Personal Computing was $13.2 billion and increased 2% (up 3% in constant currency), with the following business highlights:

 

   

Windows OEM revenue increased 18% (up 18% in constant currency)

   

Windows Commercial products and cloud services revenue increased 25% (up 27% in constant currency)

   

Surface revenue increased 6% (up 8% in constant currency)

   

Search advertising revenue excluding traffic acquisition costs increased 6% (up 7% in constant currency)

   

Xbox content and services revenue decreased 11% (down 9% 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.

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, Frank Brod, 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 January 29, 2021.


Non-GAAP Definition

We recorded a net charge of $157 million during the three months ended December 31, 2018 related to the TCJA.

We have provided non-GAAP financial measures related to the TCJA to aid investors in better understanding our performance. We believe these non-GAAP measures assist investors by providing additional insight into our operational performance and help clarify trends affecting our 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 December 31,

 

 

   ($ in millions, except per share amounts)

 

  

  Revenue  

 

    

  Operating  
  Income  

 

    

  Net Income  

 

    

  Diluted  
  Earnings per  
  Share  

 

 

  2018 As Reported (GAAP)

  

 

$32,471

 

  

 

$10,258

 

  

 

$8,420

 

  

 

$1.08

 

  2018 As Adjusted (non-GAAP)

  

 

$32,471

 

  

 

$10,258

 

  

 

$8,577

 

  

 

$1.10

 

  2019 As Reported

  

 

$36,906

 

  

 

$13,891

 

  

 

$11,649

 

  

 

$1.51

 

  Percentage Change Y/Y (GAAP)

  

 

14%

 

  

 

35%

 

  

 

38%

 

  

 

40%

 

  Percentage Change Y/Y (non-GAAP)

  

 

14%

 

  

 

35%

 

  

 

36%

 

  

 

37%

 

  Constant Currency Impact

  

 

$(465)

 

  

 

$(408)

 

  

 

$(285)

 

  

 

$(0.04)

 

  Percentage Change Y/Y (non-GAAP) Constant Currency

  

 

15%

 

  

 

39%

 

  

 

39%

 

  

 

41%

 

Segment Revenue Constant Currency Reconciliation

 

     

Three Months Ended December 31,

 

 

   ($ in millions)

 

  

Productivity and
Business Processes

 

    

Intelligent Cloud

 

    

More Personal
      Computing      

 

 

  2018 As Reported

  

 

$10,100

 

  

 

$9,378

 

  

 

$12,993

 

  2019 As Reported

  

 

$11,826

 

  

 

$11,869

 

  

 

$13,211

 

  Percentage Change Y/Y

  

 

17%

 

  

 

27%

 

  

 

2%

 

  Constant Currency Impact

  

 

$(183)

 

  

 

$(165)

 

  

 

$(117)

 

  Percentage Change Y/Y Constant Currency

  

 

19%

 

  

 

28%

 

  

 

3%

 

Selected Product and Service Revenue Constant Currency Reconciliation

 

     

Three Months Ended December 31, 2019

 

 
     

Percentage Change
Y/Y (GAAP)

 

    

Constant Currency
Impact

 

    

Percentage Change
Y/Y Constant
Currency

 

 

  Office Commercial products and cloud services

  

 

16%

 

  

 

2%

 

  

 

18%

 

  Office 365 Commercial

  

 

27%

 

  

 

3%

 

  

 

30%

 

  Office Consumer products and cloud services

  

 

19%

 

  

 

1%

 

  

 

20%

 

  LinkedIn

  

 

24%

 

  

 

2%

 

  

 

26%

 

  Dynamics products and cloud services

  

 

12%

 

  

 

3%

 

  

 

15%

 

  Dynamics 365

  

 

42%

 

  

 

3%

 

  

 

45%

 

  Server products and cloud services

  

 

30%

 

  

 

2%

 

  

 

32%

 

  Azure

  

 

62%

 

  

 

2%

 

  

 

64%

 

  Enterprise Services

  

 

6%

 

  

 

1%

 

  

 

7%

 

  Windows OEM

  

 

18%

 

  

 

0%

 

  

 

18%

 

  Windows Commercial products and cloud services

  

 

25%

 

  

 

2%

 

  

 

27%

 

  Search advertising excluding traffic acquisition costs

  

 

6%

 

  

 

1%

 

  

 

7%

 

  Surface

  

 

6%

 

  

 

2%

 

  

 

8%

 

  Xbox content and services

  

 

(11)%

 

  

 

2%

 

  

 

(9)%

 


About Microsoft

Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is 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:

 

   

intense competition in all of our markets that may lead to lower revenue or operating margins;

 

   

increasing focus on cloud-based services presenting execution and competitive risks;

 

   

significant investments in products and services that may not achieve expected returns;

 

   

acquisitions, joint ventures, and strategic alliances that may have an adverse effect on our business;

 

   

impairment of goodwill or amortizable intangible assets causing a significant charge to earnings;

 

   

cyberattacks and security vulnerabilities that could lead to reduced revenue, increased costs, liability claims, or harm to our reputation or competitive position;

 

   

disclosure and misuse of personal data that could cause liability and harm to our reputation;

 

   

the possibility that we may not be able to protect information stored in our products and services from use by others;

 

   

abuse of our advertising or social platforms that may harm our reputation or user engagement;

 

   

the development of the internet of things presenting security, privacy, and execution risks;

 

   

issues about the use of AI in our offerings that may result in competitive harm, legal liability, or reputational harm;

 

   

excessive outages, data losses, and disruptions of our online services if we fail to maintain an adequate operations infrastructure;

 

   

quality or supply problems;

 

   

the possibility that we may fail to protect our source code;

 

   

legal changes, our evolving business model, piracy, and other factors may decrease the value of our intellectual property;

 

   

claims that Microsoft has infringed the intellectual property rights of others;

 

   

claims against us that may result in adverse outcomes in legal disputes;

 

   

government litigation and regulatory activity relating to competition rules that may limit how we design and market our products;


   

potential liability under trade protection, anti-corruption, and other laws resulting from our global operations;

 

   

laws and regulations relating to the handling of personal data that may impede the adoption of our services or result in increased costs, legal claims, fines, or reputational damage;

 

   

additional tax liabilities;

 

   

damage to our reputation or our brands that may harm our business and operating results;

 

   

exposure to increased economic and operational uncertainties from operating a global business, including the effects of foreign currency exchange;

 

   

uncertainties relating to our business with government customers;

 

   

adverse economic or market conditions that may harm our business;

 

   

catastrophic events or geo-political conditions that may disrupt our business; and

 

   

the dependence of our business on our ability to attract and retain talented employees.

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 December 31, 2019. 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.

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:

Michael Spencer, General Manager, 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.


MICROSOFT CORPORATION    

INCOME STATEMENTS

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

 

     Three Months Ended
December 31,
     Six Months Ended
December 31,
 
          2019            2018            2019            2018   

 

 

 Revenue:

           

 Product

  

 

$18,255 

 

  

 

$16,219 

 

  

 

$34,023 

 

  

 

$33,518 

 

 Service and other

  

 

18,651 

 

  

 

16,252 

 

     35,938      

 

28,037 

 

 

    

 

 

    

 

 

    

 

 

 

 Total revenue

  

 

36,906 

 

  

 

32,471 

 

  

 

69,961 

 

  

 

61,555 

 

 

    

 

 

    

 

 

    

 

 

 

 Cost of revenue:

     

 

 

 

  

 

 

 

  

 

 

 

 Product

  

 

4,966 

 

  

 

5,885 

 

  

 

8,271 

 

  

 

9,534 

 

 Service and other

  

 

7,392 

 

  

 

6,538 

 

  

 

14,493 

 

  

 

12,794 

 

 

    

 

 

    

 

 

    

 

 

 

 Total cost of revenue

  

 

12,358 

 

  

 

12,423 

 

  

 

22,764 

 

  

 

22,328 

 

 

    

 

 

    

 

 

    

 

 

 

 Gross margin

  

 

24,548 

 

  

 

20,048 

 

  

 

47,197 

 

  

 

39,227 

 

 Research and development

  

 

4,603 

 

  

 

4,070 

 

  

 

9,168 

 

  

 

8,047 

 

 Sales and marketing

  

 

4,933 

 

  

 

4,588 

 

  

 

9,270 

 

  

 

8,686 

 

 General and administrative

  

 

1,121 

 

  

 

1,132 

 

  

 

2,182 

 

  

 

2,281 

 

 

    

 

 

    

 

 

    

 

 

 

 Operating income

  

 

13,891 

 

  

 

10,258 

 

  

 

26,577 

 

  

 

20,213 

 

 Other income, net

  

 

194 

 

  

 

127 

 

  

 

194 

 

  

 

393 

 

 

    

 

 

    

 

 

    

 

 

 

 Income before income taxes

  

 

14,085 

 

  

 

10,385 

 

  

 

26,771 

 

  

 

20,606 

 

 Provision for income taxes

  

 

2,436 

 

  

 

1,965 

 

  

 

4,444 

 

  

 

3,362 

 

 

    

 

 

    

 

 

    

 

 

 

 Net income

  

 

$11,649 

 

  

 

$8,420 

 

  

 

$22,327 

 

  

 

$17,244 

 

  

 

 

    

 

 

    

 

 

    

 

 

 

 Earnings per share:

        

 

 

 

  

 

 

 

 Basic

  

 

$1.53 

 

  

 

$1.09 

 

  

 

$2.93 

 

  

 

$2.24 

 

 Diluted

  

 

$1.51 

 

  

 

$1.08 

 

  

 

$2.90 

 

  

 

$2.22 

 

 Weighted average shares outstanding:

        

 

 

 

  

 

 

 

 Basic

  

 

7,621 

 

  

 

7,692 

 

  

 

7,628 

 

  

 

7,683 

 

 Diluted

  

 

7,691 

 

  

 

7,768 

 

  

 

7,701 

 

  

 

7,767 

 

 

 


MICROSOFT CORPORATION    

 

COMPREHENSIVE INCOME STATEMENTS

(In millions) (Unaudited)

 

    

Three Months Ended

     Six Months Ended  
    

December 31,

     December 31,  
    

     2019 

    

 

     2018 

          2019            2018   

 

 

 Net income

  

 

$11,649 

 

  

 

$8,420 

 

  

 

$22,327 

 

  

 

$17,244 

 

  

 

 

    

 

 

    

 

 

    

 

 

 

 Other comprehensive income (loss), net of tax:

           

 Net change related to derivatives

  

 

(4) 

 

  

 

(15) 

 

  

 

(6) 

 

  

 

(60) 

 

 Net change related to investments

  

 

(420) 

 

  

 

881 

 

  

 

157 

 

  

 

620 

 

 Translation adjustments and other

  

 

230 

 

  

 

(264) 

 

  

 

(66) 

 

  

 

(319) 

 

 

    

 

 

    

 

 

    

 

 

 

 Other comprehensive income (loss)

  

 

(194) 

 

  

 

602 

 

  

 

85 

 

  

 

241 

 

 

    

 

 

    

 

 

    

 

 

 

 Comprehensive income

  

 

$11,455 

 

  

 

$9,022 

 

  

 

$22,412 

 

  

 

$17,485 

 

  

 

 

    

 

 

    

 

 

    

 

 

 


MICROSOFT CORPORATION    

 

BALANCE SHEETS

(In millions) (Unaudited)

 

     December 31,
2019 
     June 30,
2019 
 

 

 

 Assets

     

 Current assets:

     

 Cash and cash equivalents

  

 

$8,864 

 

  

 

$11,356 

 

 Short-term investments

  

 

125,389 

 

  

 

122,463 

 

 

    

 

 

 

 Total cash, cash equivalents, and short-term investments

  

 

134,253 

 

  

 

133,819 

 

 Accounts receivable, net of allowance for doubtful accounts of $384 and $411

  

 

23,525 

 

  

 

29,524 

 

 Inventories

  

 

1,823 

 

  

 

2,063 

 

 Other current assets

  

 

7,473 

 

  

 

10,146 

 

 

    

 

 

 

 Total current assets

  

 

167,074 

 

  

 

175,552 

 

 Property and equipment, net of accumulated depreciation of $39,597 and $35,330

  

 

40,522 

 

  

 

36,477 

 

 Operating lease right-of-use assets

  

 

8,439 

 

  

 

7,379 

 

 Equity investments

  

 

2,755 

 

  

 

2,649 

 

 Goodwill

  

 

42,248 

 

  

 

42,026 

 

 Intangible assets, net

  

 

7,126 

 

  

 

7,750 

 

 Other long-term assets

  

 

14,630 

 

  

 

14,723 

 

 

    

 

 

 

 Total assets

  

 

$282,794 

 

  

 

$286,556 

 

  

 

 

    

 

 

 

 Liabilities and stockholders’ equity

     

 Current liabilities:

     

 Accounts payable

  

 

$8,811 

 

  

 

$9,382 

 

 Current portion of long-term debt

  

 

6,247 

 

  

 

5,516 

 

 Accrued compensation

  

 

5,421 

 

  

 

6,830 

 

 Short-term income taxes

  

 

2,687 

 

  

 

5,665 

 

 Short-term unearned revenue

  

 

27,343 

 

  

 

32,676 

 

 Other current liabilities

  

 

9,131 

 

  

 

9,351 

 

 

    

 

 

 

 Total current liabilities

  

 

59,640 

 

  

 

69,420 

 

 Long-term debt

  

 

63,361 

 

  

 

66,662 

 

 Long-term income taxes

  

 

28,754 

 

  

 

29,612 

 

 Long-term unearned revenue

  

 

3,878 

 

  

 

4,530 

 

 Deferred income taxes

  

 

222 

 

  

 

233 

 

 Operating lease liabilities

  

 

7,172 

 

  

 

6,188 

 

 Other long-term liabilities

  

 

9,658 

 

  

 

7,581 

 

 

    

 

 

 

 Total liabilities

  

 

172,685 

 

  

 

184,226 

 

 

    

 

 

 

 Commitments and contingencies

     

 Stockholders’ equity:

     

 Common stock and paid-in capital — shares authorized 24,000; outstanding 7,611 and 7,643

  

 

79,625 

 

  

 

78,520 

 

 Retained earnings

  

 

30,739 

 

  

 

24,150 

 

 Accumulated other comprehensive loss

  

 

(255) 

 

  

 

(340) 

 

 

    

 

 

 

 Total stockholders’ equity

  

 

110,109 

 

  

 

102,330 

 

 

    

 

 

 

 Total liabilities and stockholders’ equity

  

 

            $282,794 

 

  

 

            $286,556 

 

  

 

 

    

 

 

 


MICROSOFT CORPORATION    

 

CASH FLOWS STATEMENTS

(In millions) (Unaudited)

 

     Three Months Ended 
December 31, 
     Six Months Ended 
December 31, 
 
     2019       2018       2019       2018   

 

 

 Operations

           

 Net income

             $11,649         $8,420                 $22,327         $17,244   

 Adjustments to reconcile net income to net cash from operations:

                 

 Depreciation, amortization, and other

     3,203         2,995         6,174         5,832   

 Stock-based compensation expense

     1,340         1,183         2,602         2,290   

 Net recognized gains on investments and derivatives

     (203)         (135)         (192)         (375)   

 Deferred income taxes

     (53)         (173)         (230)         (420)   

 Changes in operating assets and liabilities:

                 

 Accounts receivable

     (4,203)         (2,396)         5,887         6,798   

 Inventories

     799         1,654         238         698   

 Other current assets

     165         (173)         (273)         (850)   

 Other long-term assets

     (517)         (473)         (850)         (452)   

 Accounts payable

     (7)         (440)         (554)         (835)   

 Unearned revenue

     (2,936)         (2,122)         (5,828)         (4,563)   

 Income taxes

     (471)         (64)         (3,807)         (1,155)   

 Other current liabilities

     1,489         656         (1,831)         (1,666)   

 Other long-term liabilities

     425         (32)         835         11   

 

    

 

 

    

 

 

    

 

 

 

 Net cash from operations

     10,680         8,900         24,498         22,557   

 

    

 

 

    

 

 

    

 

 

 

 Financing

                 

 Repayments of debt

     (18)         (3,000)         (2,518)         (3,000)   

 Common stock issued

     234         200         661         560   

 Common stock repurchased

     (5,206)         (6,413)         (10,118)         (10,157)   

 Common stock cash dividends paid

     (3,886)         (3,544)         (7,396)         (6,764)   

 Other, net

     (39)         (459)         247         (1,239)   

 

    

 

 

    

 

 

    

 

 

 

 Net cash used in financing

     (8,915)         (13,216)         (19,124)         (20,600)   

 

    

 

 

    

 

 

    

 

 

 

 Investing

                 

 Additions to property and equipment

     (3,545)         (3,707)         (6,930)         (7,309)   

 Acquisition of companies, net of cash acquired, and purchases of intangible and other assets

     (80)         (1,593)         (542)         (1,838)   

 Purchases of investments

     (19,011)         (16,858)         (42,401)         (36,409)   

 Maturities of investments

     11,230         3,782         30,312         8,996   

 Sales of investments

     5,370         14,176         11,749         29,407   

 

    

 

 

    

 

 

    

 

 

 

 Net cash used in investing

     (6,036)         (4,200)         (7,812)         (7,153)   

 

    

 

 

    

 

 

    

 

 

 

 Effect of foreign exchange rates on cash and cash equivalents

     18         17         (54)         (112)   

 

    

 

 

    

 

 

    

 

 

 

 Net change in cash and cash equivalents

     (4,253)         (8,499)         (2,492)         (5,308)   

 Cash and cash equivalents, beginning of period

     13,117         15,137         11,356         11,946   

 

    

 

 

    

 

 

    

 

 

 

 Cash and cash equivalents, end of period

     $8,864         $6,638         $8,864         $6,638   
  

 

 

    

 

 

    

 

 

    

 

 

 


MICROSOFT CORPORATION    

 

SEGMENT REVENUE AND OPERATING INCOME

(In millions) (Unaudited)

 

     Three Months Ended      Six Months Ended  
     December 31,      December 31,  
          2019           2018           2019           2018  

 

 

 

 Revenue

           

 Productivity and Business Processes

  

 

$11,826 

 

  

 

$10,100 

 

  

 

$22,903 

 

  

 

$19,871 

 

 Intelligent Cloud

  

 

11,869 

 

  

 

9,378 

 

  

 

22,714 

 

  

 

17,945 

 

 More Personal Computing

  

 

13,211 

 

  

 

12,993 

 

     24,344      

 

23,739 

 

 

    

 

 

    

 

 

    

 

 

 

 Total

  

 

$36,906 

 

  

 

$32,471 

 

  

 

$69,961 

 

  

 

$61,555 

 

  

 

 

    

 

 

    

 

 

    

 

 

 

 Operating Income

           

 Productivity and Business Processes

  

 

$5,182 

 

  

 

$4,015 

 

  

 

$9,964 

 

  

 

$7,896 

 

 Intelligent Cloud

  

 

4,531 

 

  

 

3,279 

 

  

 

8,420 

 

  

 

6,210 

 

 More Personal Computing

  

 

4,178 

 

  

 

2,964 

 

  

 

8,193 

 

  

 

6,107 

 

 

    

 

 

    

 

 

    

 

 

 

 Total

  

 

$13,891 

 

  

 

$10,258 

 

  

 

$26,577 

 

  

 

$20,213