MSFT 8-K — Smart Summary

Microsoft reported fiscal Q2 2024 results (quarter ended December 31, 2023) on January 30, 2024, with revenue of $62.0 billion, up 18% year-over-year, driven by strong cloud performance. Net income increased 33% to $21.9 billion and diluted EPS rose 33% to $2.93. The filing also notes the completed acquisition of Activision Blizzard on October 13, 2023, with results reported in the More Personal Computing segment.

• Revenue: $62.0 billion, up 18% YoY (up 16% in constant currency)
• Operating income: $27.0 billion, up 33% YoY GAAP (up 25% non-GAAP; up 23% non-GAAP constant currency)
• Net income: $21.9 billion, up 33% YoY GAAP (up 26% non-GAAP; up 23% non-GAAP constant currency)
• Diluted EPS: $2.93, up 33% YoY GAAP (up 26% non-GAAP; up 23% non-GAAP constant currency)
• Gross margin: $42.4 billion (Q2 2023) vs. $35.3 billion (Q2 2022)
• Cash flow from operations: $18.9 billion for the three months ended December 31, 2023, vs. $11.2 billion in the prior-year period
• Microsoft Cloud revenue: $33.7 billion, up 24% YoY (up 22% in constant currency)

• Productivity and Business Processes: revenue $19.2 billion, up 13% YoY (up 12% constant currency); operating income $10.3 billion vs. $8.2 billion prior year
• Intelligent Cloud: revenue $25.9 billion, up 20% YoY (up 19% constant currency); operating income $12.5 billion vs. $8.9 billion prior year; Azure and other cloud services revenue up 30% (up 28% constant currency)
• More Personal Computing: revenue $16.9 billion, up 19% YoY (up 18% constant currency); operating income $4.3 billion vs. $3.3 billion prior year; includes Activision results
• Within Productivity and Business Processes: Office Commercial products and cloud services up 15% (up 13% CC); Office 365 Commercial up 17% (up 16% CC); LinkedIn up 9% (up 8% CC); Dynamics 365 up 27% (up 24% CC)
• Within More Personal Computing: Xbox content and services up 61% (up 60% CC) driven by 55 points of net impact from Activision; Devices revenue down 9% (down 10% CC); Search and news advertising ex-TAC up 8% (up 7% CC)

• Microsoft returned $8.4 billion to shareholders in Q2 fiscal year 2024 in the form of share repurchases and dividends
• Common stock repurchased: $4.0 billion for the three months ended December 31, 2023
• Common stock cash dividends paid: $5.6 billion for the three months ended December 31, 2023
• Total cash, cash equivalents, and short-term investments: $81.0 billion as of December 31, 2023, vs. $111.3 billion as of June 30, 2023
• Short-term debt: $27.0 billion as of December 31, 2023 (vs. $0 as of June 30, 2023); long-term debt: $44.9 billion vs. $42.0 billion
• Proceeds from issuance of debt: $10.8 billion for the three months ended December 31, 2023; repayments of debt: $2.9 billion for the same period

• "We've moved from talking about AI to applying AI at scale. By infusing AI across every layer of our tech stack, we're winning new customers and helping drive new benefits and productivity gains across every sector." — Satya Nadella, chairman and chief executive officer
• "Strong execution by our sales teams and partners drove Microsoft Cloud revenue to $33.7 billion, up 24% (up 22% in constant currency) year-over-year." — Amy Hood, executive vice president and chief financial officer

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