MSFT 8-K — Smart Summary

Microsoft Corporation reported fiscal Q1 2024 results (quarter ended September 30, 2023) on October 24, 2023, via an 8-K filing under Item 2.02. Revenue grew 13% YoY to $56.5 billion, driven by Microsoft Cloud revenue of $31.8 billion (up 24% YoY), with strong growth across all three business segments. The company returned $9.1 billion to shareholders through share repurchases and dividends in the quarter.

• Revenue: $56.5 billion, up 13% YoY (up 12% in constant currency) vs. $50.1 billion in Q1 FY2023
• Operating income: $26.9 billion, up 25% YoY (up 24% in constant currency) vs. $21.5 billion
• Net income: $22.3 billion, up 27% YoY (up 26% in constant currency) vs. $17.6 billion
• Diluted EPS: $2.99, up 27% YoY (up 26% in constant currency) vs. $2.35
• Gross margin: $40.2 billion vs. $34.7 billion in the prior-year period
• Cash flow from operations: $30.6 billion vs. $23.2 billion in Q1 FY2023
• Microsoft Cloud revenue: $31.8 billion, up 24% YoY (up 23% in constant currency)

• Productivity and Business Processes: revenue $18.6 billion, up 13% YoY (up 12% in constant currency); operating income $9.97 billion vs. $8.32 billion
• Office Commercial products and cloud services revenue up 15% (up 14% in constant currency); Office 365 Commercial up 18% (up 17% in constant currency)
• Office Consumer products and cloud services up 3% (up 4% in constant currency); Microsoft 365 Consumer subscribers grew to 76.7 million
• LinkedIn revenue up 8%; Dynamics products and cloud services up 22% (up 21% in constant currency); Dynamics 365 up 28% (up 26% in constant currency)
• Intelligent Cloud: revenue $24.3 billion, up 19% YoY; operating income $11.8 billion vs. $9.0 billion; Server products and cloud services up 21%; Azure and other cloud services up 29% (up 28% in constant currency)
• More Personal Computing: revenue $13.7 billion, up 3% YoY (up 2% in constant currency); operating income $5.17 billion vs. $4.22 billion; Windows revenue up 5%, Devices down 22%, Xbox content and services up 13% (up 12% in constant currency), Search and news advertising ex-TAC up 10% (up 9% in constant currency)

• Microsoft returned $9.1 billion to shareholders in the form of share repurchases and dividends in Q1 FY2024
• Common stock repurchased: $4.831 billion in the quarter
• Common stock cash dividends paid: $5.051 billion in the quarter
• Short-term debt: $25.808 billion as of September 30, 2023 (vs. $0 as of June 30, 2023)
• Long-term debt: $41.946 billion as of September 30, 2023 (vs. $41.990 billion as of June 30, 2023)
• Total cash, cash equivalents, and short-term investments: $143.951 billion as of September 30, 2023 (vs. $111.262 billion as of June 30, 2023)
• Proceeds from issuance of debt (maturities of 90 days or less, net): $18.692 billion; proceeds from issuance of debt: $7.073 billion; repayments of debt: $1.500 billion

• "With copilots, we are making the age of AI real for people and businesses everywhere. We are rapidly infusing AI across every layer of the tech stack and for every role and business process to drive productivity gains for our customers." — Satya Nadella, chairman and chief executive officer of Microsoft
• "Consistent execution by our sales teams and partners drove a strong start to the fiscal year with Microsoft Cloud revenue of $31.8 billion, up 24% (up 23% in constant currency) year-over-year." — Amy Hood, executive vice president and chief financial officer of Microsoft

• Microsoft stated it will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast; no specific quantitative guidance figures were included in the press release text.