Microsoft has announced financial results for its fiscal fourth-quarter 2017 (ended June 30, 2017) with revenues reaching US$23.3 billion GAAP, US$24.7 billion non-GAAP; operating income US$5.3 billion GAAP, US$7 billion non-GAAP; net income US$6.5 billion GAAP, US$7.7 billion non-GAAP; and diluted earnings per share US$0.83 GAAP, and US$0.98 non-GAAP
Microsoft returned US$4.6 billion to shareholders in the form of share repurchases and dividends.
Revenues in Productivity and Business Processes were US$8.4 billion and increased 21% (up 23% in constant currency), with the following business highlights: Office commercial products and cloud services revenues increased 5% (up 6% in constant currency) driven by Office 365 commercial revenue growth of 43% (up 44% in constant currency).
Office consumer products and cloud services revenues increased 13% (up 13% in constant currency) and Office 365 consumer subscribers increased to 27 million; Dynamics products and cloud services revenues increased 7% (up 9% in constant currency) driven by Dynamics 365 revenue growth of 74% (up 75% in constant currency); and LinkedIn contributed revenues of US$1.1 billion during the quarter.
Revenues in Intelligent Cloud were US$7.4 billion and increased 11% (up 12% in constant currency), with the following business highlights: Server products and cloud services revenues increased 15% (up 16% in constant currency) driven by Azure revenue growth of 97% (up 98% in constant currency), while Enterprise Services revenues decreased 3% (down 1% in constant currency) with declines in custom support agreements offset by growth in Premier Support Services.
Revenues in More Personal Computing were US$8.8 billion and decreased 2% (down 1% in constant currency) driven primarily by lower phone revenues, with the following business highlights: Windows OEM revenues increased 1% (up 1% in constant currency), slightly ahead of the overall PC market.
Windows commercial products and cloud services revenues increased 8% (up 8% in constant currency) driven by annuity revenue growth; Surface revenues decreased 2% (down 1% in constant currency) mainly due to product life-cycle transitions; search advertising revenues excluding traffic acquisition costs increased 10% (up 11% in constant currency) driven by higher revenues per search and search volume; and gaming revenues increased 3% (up 4% in constant currency) as strength in Xbox software and services offset lower hardware revenues.
Microsoft also announced revenues of US$90 billion GAAP, and $96.7 billion non-GAAP; operating incomes of US$22.3 billion GAAP, and US$29.3 billion non-GAAP; net incomes of US$21.2 billion GAAP, and US$25.9 billion non-GAAP and diluted earnings per share of US$2.71 GAAP, and US$3.31 non-GAAP for the fiscal year ended June 30, 2017.
Microsoft financial results, fiscal 4Q17 (US$m) | ||||
Revenues | Operating income | Net income | Diluted earnings per share (US$) | |
2016 as reported (GAAP) | 20,614 | 3,080 | 3,122 | 0.39 |
Net impact from Windows 10 revenue deferrals | 2,027 | 2,027 | 1,466 | 0.19 |
Impairment and restructuring expenses | – | 1,110 | 895 | 0.11 |
2016 as adjusted (non-GAAP) | 22,641 | 6,217 | 5,483 | 0.69 |
2017 as reported (GAAP) | 23,317 | 5,330 | 6,513 | 0.83 |
Net impact from Windows 10 revenue deferrals | 1,383 | 1,383 | 909 | 0.12 |
Impairment and restructuring expenses | – | 306 | 243 | 0.03 |
2017 as adjusted (non-GAAP) | 24,700 | 7,019 | 7,665 | 0.98 |
Y/Y (GAAP) | 13% | 73% | 109% | 112% |
Y/Y (non-GAAP) | 9% | 13% | 40% | 42% |
Y/Y (non-GAAP) constant currency | 10% | 16% | 42% | 43% |
Source: Company, compiled by Digitimes, July 2017
