Microsoft Corporation Q4 FY2024 Earnings Call
· Earnings call transcript and AI-powered summary
Overview
- Q4 revenue: $64.7B, up 15% YoY (16% constant currency).
- EPS: $2.95, up 10% YoY.
- Full-year revenue surpassed $245B, up 15% YoY.
- Microsoft Cloud revenue exceeded $135B for FY24, up 23% YoY.
- Commercial bookings grew 17% YoY; strong large-deal momentum.
- Activision contributed +3 points to revenue growth but reduced operating income growth by 2 points.
Business Segment Performance
Productivity & Business Processes (Revenue $20.3B, +11% YoY)
- Office 365 Commercial revenue +13% YoY; paid seats +7% YoY.
- Strong enterprise upgrades driven by E5 and Microsoft 365 Copilot adoption.
- Office Consumer revenue +3% YoY; Microsoft 365 subs reached 82.5M (+10%).
- LinkedIn revenue +10% YoY; accelerated member growth and strong ad demand.
- Dynamics revenue +16% YoY; Dynamics 365 +19% YoY and now ~90% of segment.
Intelligent Cloud (Revenue $28.5B, +19% YoY)
- Azure and other cloud services +29% YoY; AI services contributed 8 points.
- Azure growth consistent with Q3 when accounting for leap-year impact.
- AI demand exceeded available capacity; European regions saw slight softness.
- Server products and cloud services +21% YoY.
- Enterprise mobility and security seats +10% YoY to 281M.
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