Microsoft Corporation Q4 FY2022 Earnings Call

· Earnings call transcript and AI-powered summary

Overview

  • Microsoft reported quarterly revenue of $51.9B, up 12% year-over-year (16% in constant currency).
  • EPS was $2.23, up 3% year-over-year (8% in constant currency).
  • Microsoft Cloud revenue surpassed $25B for the first time, growing 28% year-over-year (33% in constant currency).
  • Macro headwinds included FX pressure ($595M impact on revenue), PC market deterioration, and reduced advertising spend.

Key Business Segment Performance

Productivity & Business Processes

  • Revenue: $16.6B, up 13% year-over-year (17% in constant currency).
  • Office 365 Commercial revenue: up 15% (19% in constant currency). Paid seats up 14%.
  • E5 seats grew more than 60% year-over-year; now 12% of Office 365 installed base.
  • Dynamics revenue: up 19% (24% in constant currency). Dynamics 365 grew 31% (36% in constant currency).
  • LinkedIn revenue: up 26% (29% in constant currency) but below expectations due to weaker advertising and hiring trends.

Intelligent Cloud

  • Revenue: $20.9B, up 20% year-over-year (25% in constant currency).
  • Azure and other cloud services: up 40% (46% in constant currency), about 1 point lower than expected due to slight consumption moderation.
  • Server products and cloud services: up 22% year-over-year (26% in constant currency).
  • Enterprise Mobility & Security seats: grew 21% to 230M.

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Operator: Greetings, and welcome to the Microsoft Fiscal Year 2022 Fourth Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brett Iversen, Vice President of Investor Relations. Thank you. You may begin. Brett Iversen: Good afternoon, and thank you for joining us today. On the call with me are Satya Nadella, Chairman and Chief Executive Officer; Amy Hood, Chief Financial Officer; Alice Jolla, Chief Accounting Officer; and Keith Dolliver, Deputy General Counsel. On the Microsoft Investor Relations website, you can find our earnings press release and financial summary slide deck, which is intended to supplement our prepared remarks during today's call and provides a reconciliation of differences between GAAP and non-GAAP financial measures. Unless otherwise specified, we will refer to non-GAAP metrics on the call. The non-GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. They are included as additional clarifying items to aid investors in further understanding the company's fourth quarter performance in addition to the impact these items and events have on the financial results. All growth comparisons we make on the call today relate to the

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