microsoft revenue by segmentmicrosoft revenue by segment

Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. The markets for software, devices, and cloud-based services are dynamic and highly competitive. We also invested $20 million in key non-profit partnerships through Microsoft Philanthropies to help people from underserved communities that are often excluded by the digital economy. The TCJA significantly changes existing U.S. tax law and includes numerous provisions that affect our business. Server products revenue increased 6% driven by hybrid and premium solutions, on a strong prior year comparable that benefited from demand related to SQL Server 2008 and Windows Server 2008 end of support. We continued to pay hourly service providers such as cleaning and reception staff who may have otherwise been furloughed. The adoption of the standard did not have a material impact on our consolidated financial statements. Commercial cloud revenue was up 33% over last year. These non-GAAP financial measures presented should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. Archives of these events are also available. Business, and Chief Marketing Officer, Christopher D. Young Obsessing over what matters to our customers. Diversity and inclusion continues to be a core priority for every employee at Microsoft and is incorporated into our performance and career development approach. COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* $63.364 billion of Microsoft's $198.270 billion in fiscal year 2022 revenue came from the Productivity and Business Processes segment. Our skills initiative brings together learning resources, certification opportunities, and job-seeker tools from LinkedIn, GitHub, and Microsoft Learn, and is built on data insights drawn from LinkedIns Economic Graph. The investments are predominantly U.S. dollar-denominated securities, but also include foreign currency-denominated securities to diversify risk. The settlement risk related to these investments is insignificant given that the short-term investments held are primarily highly liquid investment-grade fixed-income securities. Our strategy requires continued investment in datacenters and other hybrid and edge infrastructure to support our services. In our rapidly changing digital economy, people need a platform where they can acquire new skills, expand their networks, and connect with employers. We have a strong position with our large and growing highly engaged community of gamers, including the March 2021 acquisition of ZeniMax Media Inc., the parent company of Bethesda Softworks LLC, one of the largest, privately held game developers and publishers in the world. Adjusted net income and adjusted diluted earnings per share (EPS) are non-GAAP financial measures which exclude tax benefits related to an India Supreme Court decision on withholding taxes in fiscal year 2021. Certain forecasted transactions, assets, and liabilities are exposed to foreign currency risk. Dear shareholders, colleagues, customers, and partners: As I write this, people and organizations everywhere continue to struggle with the uncertainty of a pandemic that continues to cause so much suffering. We design our devices, from Surface to Xbox, to minimize their impact on the environment. During fiscal year 2021, our Daily Pulse surveys gave us invaluable insights into ways we could support employees through the COVID-19 pandemic and addressing racial injustice. Vertically integrated computer manufacturers such as Hewlett-Packard, IBM, and Oracle offer their own versions of the Unix operating system preinstalled on server hardware. Our vision is to create economic opportunity for every member of the global workforce through the ongoing development of the worlds first Economic Graph, a digital representation of the global economy. With more than 60 datacenter regionsincluding 15 new regions added this year on five continentswe are delivering faster access to data and cloud services while addressing critical data residency requirements. If our review indicates a reduction in utility below carrying value, we reduce our inventory to a new cost basis through a charge to cost of revenue. Finance leases are included in property and equipment, other current liabilities, and other long-term liabilities in our consolidated balance sheets. If market, industry, and/or investee conditions deteriorate, we may incur future impairments. This study bestows revenue data by type, and during the historical period (2017-2023) and forecast period (2023-2028). There are two broad categories of OEMs. It extends to our investments in security, and our belief that the public and private sectorsincluding tech companiesmust be transparent so we can work together on a coordinated global response. Determination of stand-alone selling prices for each distinct performance obligation and for products and services that are not sold separately. The better we represent that diversity inside Microsoft, the more effectively we can innovate for those we seek to empower. Following are details of the purchase price allocated to the intangible assets acquired: On October 25, 2018, we acquired GitHub, Inc. (GitHub), a software development platform, in a $7.5 billion stock transaction (inclusive of total cash payments of $1.3 billion in respect of vested GitHub equity awards and an indemnity escrow). Our ongoing survey data shows employees value the flexibility related to work location, work site, and work hours, and while many indicate they intend to return to a worksite once conditions permit, they also intend to adjust hours or spend some portions of workweeks working remotely. Executive Vice President and Chief Financial Officer, Alice L. Jolla The Company engaged Deloitte & Touche LLP, an independent registered public accounting firm, to audit and render an opinion on the consolidated financial statements and internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (United States). Our fixed-income portfolio is diversified and consists primarily of investment-grade securities. We use derivative instruments to manage risks related to foreign currencies, interest rates, equity prices, and credit; to enhance investment returns; and to facilitate portfolio diversification. Antitrust and unfair competition class action lawsuits were filed against us in British Columbia, Ontario, and Quebec, Canada. Refer to Note 16 Stockholders Equity of the Notes to Financial Statements for further discussion. And we continue to make our technology affordable and accessible to nonprofit organizations around the world. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. Last year, we intercepted 30 billion email threats and 31 billion authentication attacks. Over the last year, we have collaborated with partners and worked within neighborhoods and communities to launch and scale a number of projects and programs including: expanding our existing justice reform work with a five-year, $50 million sustained effort, expanding access to affordable broadband and devices for Black and African American communities and key institutions that support them in major urban centers, expanding access to skills and education to support Black and African American students and adults to succeed in the digital economy, and increasing technology support for nonprofits that provide critical services to Black and African American communities. Sales and marketing expenses increased $519 million or 3% driven by investments in commercial sales, offset in part by a reduction in bad debt expense. Its revenue is likely to amount to $51.2 billion. These estimates and assumptions are affected by managements application of accounting policies, as well as uncertainty in the current economic environment due to COVID-19. A companys internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the companys assets that could have a material effect on the financial statements. Metrics related to our Productivity and Business Processes and Intelligent Cloud segments assess the health of our core businesses within these segments. Revenue is up 22 percent, and net income has . Serves as a specific grouping used for budgeting and forecasting purposes. In fiscal year 2021 and 2020, our foreign regional operating centers in Ireland and Puerto Rico, which are taxed at rates lower than the U.S. rate, generated 82% and 86% of our foreign income before tax. We regularly review inventory quantities on hand, future purchase commitments with our suppliers, and the estimated utility of our inventory. President and Chief Financial Officer, Dilutive potential common shares include outstanding stock options and stock awards. Microsoft expects More Personal Computing revenue to rise to between $13.6 billion and $14.0 billion in Q4 FY 2021. We determine if an arrangement is a lease at inception. $256.02 $259.13 10am 12pm 2pm 4pm. Microsoft's revenue rose 2% to $52.7 billion in the three months ended Dec. 31, compared with the average analyst estimate of $52.94 billion, according to Refinitiv IBES. As of June 30, 2021 and 2020, equity investments without readily determinable fair values measured at cost with adjustments for observable changes in price or impairments were $3.3 billion and $1.4 billion, respectively. Azure Arc simplifies governance and management by delivering a consistent multi-cloud and on-premises management platform. (Old reporting data is available in the, Biggest companies in the world by market value 2022, Lifetime global unit sales of video game consoles as of September 2021, Operating systems market share of desktop PCs 2013-2023, by month, Current-gen video game console unit sales worldwide 2017-2021. We have a network of field sales representatives and field support personnel that solicit orders from distributors and resellers, and provide product training and sales support. Based on the information currently available, we do not anticipate a significant increase or decrease to our tax contingencies for these issues within the next 12 months. And to preserve and protect journalism, were helping strengthen local news ecosystems, restore trust in news, and provide cybersecurity and legal security for journalists. Total. But the most notable thing is what will happen to the other 90 percent. "Microsoft's revenue from 2012 to 2022 financial years, by segment (in billion U.S. Capitalized software development costs are amortized over the estimated lives of the products. Under the Executive Incentive Plan, the Compensation Committee approves stock awards to executive officers and certain senior executives. The following table outlines the estimated future amortization expense related to intangible assets held as of June 30, 2021: As of June 30, 2021 and 2020, the estimated fair value of long-term debt, including the current portion, was $70.0 billion and $77.1 billion, respectively. Microsoft Mesh enables presence and shared experiences from anywhere through mixed reality applications. Microsoft's gaming revenue matched analysts' forecasts. ", Microsoft, Microsoft's revenue from 2012 to 2022 financial years, by segment (in billion U.S. dollars) Statista, https://www.statista.com/statistics/273482/segment-revenue-of-microsoft/ (last visited March 01, 2023), Microsoft's revenue from 2012 to 2022 financial years, by segment (in billion U.S. dollars) [Graph], Microsoft, July 26, 2022. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. Certain cloud services, primarily Office 365, depend on a significant level of integration, interdependency, and interrelation between the desktop applications and cloud services, and are accounted for together as one performance obligation. The company's Intelligent Cloud segment continued to lead revenue growth, up 25.5% compared to the year-ago quarter. In addition to the extraordinary steps and programs relating to COVID-19, our comprehensive benefits package includes many physical, emotional, and financial wellness programs including counseling through the Microsoft CARES Employee Assistance Program, flexible fitness benefits, savings and investment tools, adoption assistance, and back-up care for children and elders. We must also protect the institutions and processes of democracy. Basic earnings per share (EPS) is computed based on the weighted average number of shares of common stock outstanding during the period. I am encouraged because of the power of you, our shareholders, our employees, our partners, our customers, and everyone who has continued to work hard to make the world a better place in the face of constraints. We manage the average maturity of the fixed-income portfolio to achieve economic returns that correlate to certain global fixed-income indices. Forward-looking statements may appear throughout this report, including the following sections: Business, and Managements Discussion and Analysis of Financial Condition and Results of Operations. Cash used in financing increased $2.5 billion to $48.5 billion for fiscal year 2021, mainly due to a $4.4 billion increase in common stock repurchases and a $1.4 billion increase in dividends paid, offset in part by a $1.8 billion decrease in repayments of debt and a $1.7 billion decrease in cash premium paid on debt exchange. The provision for income taxes for fiscal years 2021, 2020, and 2019 included interest expense related to uncertain tax positions of $274 million, $579 million, and $515 million, respectively, net of income tax benefits. Operating expenses increased $839 million or 5% driven by investments in commercial sales, cloud engineering, and LinkedIn. Any change in the goodwill amounts resulting from foreign currency translations and purchase accounting adjustments are presented as Other in the table above. In general, investments with original maturities of greater than three months and remaining maturities of less than one year are classified as short-term investments. This year, we provided $2.5 billion in donated and discounted products and services to help 295,000 nonprofits better serve their communities. The mix of income before income taxes between the U.S. and foreign countries impacted our effective tax rate as a result of the geographic distribution of, and customer demand for, our products and services. Office Consumer products and cloud services revenue increased 10% and Microsoft 365 Consumer subscribers increased to 51.9 million. Throughout the fiscal year, we also collect nearly 75,000 Daily Pulse employee survey responses. We have operating and finance leases for datacenters, corporate offices, research and development facilities, Microsoft Experience Centers, and certain equipment. We selected a sample of customer agreements and performed the following procedures: Obtained and read contract source documents for each selection, including master agreements, and other documents that were part of the agreement. We applied a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align our credit loss methodology with the new standard. We are investing significant resources in: Our future growth depends on our ability to transcend current product category definitions, business models, and sales motions. To build a more inclusive economy, we also have a responsibility to help close the Disability Divide, which impacts more than 1 billion people with disabilities around the world. Growth depends on our ability to reach new users, add value to our core product set, and continue to expand our product and service offerings into new markets. In the Gaming segment, Microsoft's Xbox shares a 20-year rivalry with Sony's PlayStation. We manage credit exposures relative to broad-based indices and to facilitate portfolio diversification. Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases. In fiscal year 2021, we delivered $168 billion in revenue, up 18 percent year-over-year. Xbox Game Pass is a community with access to a curated library of over 100 first- and third-party console and PC titles. These obligations did not have a material impact in our consolidated financial statements during the periods presented. Right-of-use assets obtained in exchange for lease obligations: Reclassification adjustments for gains included in earnings, Tax expense included in provision for income taxes, Amounts reclassified from accumulated other comprehensive income (loss), Net change related to derivatives, net of tax of, Reclassification adjustments for (gains) losses included in other income (expense), net, Tax expense (benefit) included in provision for income taxes, Net change related to investments, net of tax of, Translation adjustments and other, net of tax effects of, Accumulated other comprehensive income (loss), end of period, Income tax benefits related to stock-based compensation, NASAs Mars mission achieved a milestone in space exploration when the small robotic helicopter Ingenuity completed the first powered flight on another planeta feat that would not have been possible without 12,000 developers on GitHub who, When a 1,300-foot ship blocked the Suez Canal and disrupted global shipping, our partner Blue Yonder, Team Rubicona nonprofit organization that responds to humanitarian crises around the world, Surgeons at Mt. Please do not hesitate to contact me. We have completed our assessment and concluded that adoption of the new standard will not have a material impact on our consolidated financial statements. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that these disclosure controls and procedures are effective. GlaxoSmithKline, Hugh F. Johnston 1 In 2013, the defendants in the consolidated cases moved to exclude the plaintiffs expert evidence of general causation on the basis of flawed scientific methodologies. Server software is integrated server infrastructure and middleware designed to support software applications built on the Windows Server operating system. Office Commercial products revenue declined 23% driven by continued customer shift to cloud offerings and transactional weakness. , Oct 10, 2022. Shares of our common stock may be purchased by employees at three-month intervals at 90% of the fair market value on the last trading day of each three-month period. Contribution in Q2 2022. Microsoft forecast Intelligent Cloud revenue of $21.1 billion to $21.35 billion for its fiscal fourth quarter, driven by strong growth in its Azure platform. The financial results of ZeniMax have been included in our consolidated financial statements since the date of the acquisition. Products revenue declined 23 % driven by continued customer shift to cloud offerings and weakness... Average maturity of the new standard will not have a material impact on our consolidated financial statements certain... Computing revenue to rise to between $ 13.6 billion and $ 14.0 billion in Q4 2021. We continue to make our technology affordable and accessible to nonprofit organizations around world... As a specific grouping used for budgeting and forecasting purposes predominantly U.S. dollar-denominated,... 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