microsoft revenue by segmentmicrosoft revenue by segment

Sales and marketing expenses include payroll, employee benefits, stock-based compensation expense, and other headcount-related expenses associated with sales and marketing personnel, and the costs of advertising, promotions, trade shows, seminars, and other programs. (All figures in USD millions, except percentages) The company generates revenue by licensing and supporting an array of software products; offering a diverse portfolio of cloud-based solutions and other services to people and business organizations; designing, manufacturing, and selling devices; and . Building and running cloud-based services in ways that unleash new experiences and opportunities for businesses and individuals. Revenue in Q2 2022. In a time of great disruption and uncertainty, customers are looking to us to accelerate their own digital transformations as software and cloud computing play a huge role across every industry and around the world. Revenue related to cloud services provided on a consumption basis, such as the amount of storage used in a period, is recognized based on the customer utilization of such resources. Our Productivity and Business Processes segment consists of products and services in our portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. Cash from operations increased $16.1 billion to $76.7 billion for fiscal year 2021, mainly due to an increase in cash received from customers, offset in part by an increase in cash paid to suppliers and employees. Our approach to hybrid work starts with Teamsthe only all-in-one solution that supports meetings, calls, chat, collaboration, and business process automation in day-to-day workflow. You can contact Microsoft Investor Relations at any time to order financial documents such as annual reports and Form 10-Ks free of charge. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. Office Commercial products revenue declined 23% driven by continued customer shift to cloud offerings and transactional weakness. In addition, we consider specific adverse conditions related to the financial health of, and business outlook for, the investee. With a continued focus on digital transformation, Microsoft is helping to ensure that no one is left behind, particularly as economies recover from the COVID-19 pandemic. Growth of our Gaming business is determined by the overall active user base through Xbox enabled content, availability of games, providing exclusive game content that gamers seek, the computational power and reliability of the devices used to access our content and services, and the ability to create new experiences through first-party content creators. Windows OEM revenue is impacted significantly by the number of Windows operating system licenses purchased by OEMs, which they pre-install on the devices they sell. The number of shares the PSU holder receives is based on the extent to which the corresponding performance goals have been achieved. We tested the reasonableness of managements judgments regarding the future resolution of the uncertain tax positions, including an evaluation of the technical merits of the uncertain tax positions. Certain income and expenses are not reported in tax returns and financial statements in the same year. Microsoft was built for this moment. No instances of impairment were identified in our May 1, 2021, May 1, 2020, or May 1, 2019 tests. We also expanded existing programs such as our Microsoft CARES Employee Assistance Program and family backup care. Enterprise Services revenue increased $534 million or 8% driven by growth in Premier Support Services. Windows Commercial products and cloud services revenue increased 14% driven by demand for Microsoft 365. Extended disruptions at these suppliers could lead to a similar disruption in our ability to manufacture devices on time to meet consumer demand. October 12, 2021. The recast of these prior period amounts had no impact on our consolidated balance sheets, consolidated income statements, or consolidated cash flows statements. 17,465. Service and other revenue includes sales from cloud-based solutions that provide customers with software, services, platforms, and content such as Office 365, Azure, Dynamics 365, and Xbox; solution support; and consulting services. In the Gaming segment, Microsoft's Xbox shares a 20-year rivalry with Sony's PlayStation. We are expanding our opportunity to reach every one of them. The following table outlines the estimated future amortization expense related to intangible assets held as of June 30, 2021: As of June 30, 2021 and 2020, the estimated fair value of long-term debt, including the current portion, was $70.0 billion and $77.1 billion, respectively. Available: https://www.statista.com/statistics/273482/segment-revenue-of-microsoft/, Microsoft's revenue from 2012 to 2022 financial years, by segment, Available to download in PNG, PDF, XLS format, Global IT spending forecast 2012-2023, by segment, Software market revenue worldwide 2016-2027, by segment, Global public IT cloud services revenue 2016-2021, by segment, Most valuable technology brands worldwide in 2021, Apple, Google, and Microsoft: revenue comparison 2008-2022, Microsoft's revenue 2008-2023, by fiscal quarter, Microsoft's net income 2008-2023, by fiscal quarter, Microsoft's expenditure on research and development 2002-2022, Microsoft's yearly sales and marketing spending 2000-2022, Revenue of Microsoft broken down by segment 2012-2022, Microsoft's productivity and business processes revenue worldwide FY 2015-2023, Microsoft's productivity and business processes income worldwide FY 2015-2023, Microsoft's intelligent cloud revenue worldwide 2015-2023, by quarter, Microsoft's intelligent cloud operating income worldwide 2015-2023, by quarter, Microsoft's 'More Personal Computing' segment revenue worldwide FY 2015-2023, Microsoft's 'More Personal Computing' segment operating income worldwide FY 2015-2023, External revenue of Microsoft broken down by major products and services 2016-2022, Top pure-play software and programming companies globally 2017-2022, by sales, Revenue and total expenses of major software companies 2020, Revenue per employee of major software companies worldwide 2020, Total assets and liabilities of major software companies 2020, Number of employees at major software companies 2020, Tablet OS market share worldwide 2016-2022, by quarter, Office productivity software market share worldwide 2022, Global top-10 cloud vendors by total revenue 2022, Global IaaS and PaaS hyperscaler revenue 2018-2021, by vendor, Cloud infrastructure services market share quarterly worldwide 2017-2022, by vendor, Public cloud platform usage and adoption worldwide 2022, by service provider, Private cloud platform service adoption worldwide 2022, by service provider, PC revenue share by vendor worldwide 2018 to 2021, PC vendor shipments worldwide from 2006-2022, Personal computer installed base share worldwide 2018 to 2021, by vendor, Microsoft's commercial revenue distribution by segment 2015-2018, Number of Windows 7 licenses sold worldwide from 2009-2012, Microsoft Windows 8: number of licenses sold 2012-2014, Brand triad: attitude towards Microsoft in Germany 2013-2016, Microsoft's automotive infotainment OS sales worldwide 2011-2020, Number of Microsoft employees 2018-2022, by location, Number of Microsoft employees 2018-2022, by business unit, Number of Microsoft patents by filing year and legal status worldwide 1999-2019, Microsoft's greenhouse gas emissions by scope 2016, Microsoft Exchange Server mailbox deployment share worldwide 2018-2022, Price of selected acquisitions by Microsoft 2022, Windows Phone smartphone users in the United States 2010-2021, Microsoft unique users in Italy 2016-2018, Canada frequency of use of Microsoft products and services 2018, by age group, Open source project growth rates worldwide: leading countries in 2019, Office software market revenue in Europe 2016-2021, Office software market revenue in Spain 2016-2021, Microsoft's revenue from 2012 to 2022 financial years, by segment (in billion U.S. dollars), Find your information in our database containing over 20,000 reports, total figure reaching over 198 billion dollars, invested billions into research and development. We built on this pledge by adding commitments to be water positive by 2030, zero waste by 2030, and to protect ecosystems by developing a Planetary Computer. Skype for Business and Skype also compete with a variety of instant messaging, voice, and video communication providers, ranging from start-ups to established enterprises. And we have made a commitment to match 100 percent of our electricity consumption with zero carbon energy purchases 100 percent of the time by 2030. Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement of our consolidated financial statements would be prevented or detected. We bring technology and products together into experiences and solutions that unlock value for our customers. While we employ much of our internally-developed intellectual property exclusively in our products and services, we also engage in outbound licensing of specific patented technologies that are incorporated into licensees products. Celanese Corporation CE reported earnings from continuing operations of $7.03 per share in the fourth quarter of 2022, up 46% from . Xbox Cloud Gaming is now available on PCs, as well as phones and tablets, and later this year will come to the console. The service gets you the information you need faster and also gives you the power and convenience of online proxy voting. The Google Cloud revenue segment generated 9.3 percent of the company's revenues, up from 4.3 percent in 2018. . Among Microsoft Corporation, the S&P 500 Index and the NASDAQ Computer Index. We saw improvement in customer advertising spend and savings in operating expenses related to COVID-19, but experienced weakness in transactional licensing. To the extent we fail to meet these requirements, we will be required to post collateral, similar to the standard convention related to over-the-counter derivatives. Total capitalized costs to obtain a contract were immaterial during the periods presented and are included in other current and long-term assets in our consolidated balance sheets. The provision for income taxes for fiscal years 2021, 2020, and 2019 included interest expense related to uncertain tax positions of $274 million, $579 million, and $515 million, respectively, net of income tax benefits. The plaintiffs have filed supplemental expert evidence, portions of which the defendants have moved to strike. We record an allowance to cover expected losses based on troubled accounts, historical experience, and other currently available evidence. This study bestows revenue data by type, and during the historical period (2017-2023) and forecast period (2023-2028). The resolution of each of these audits is not expected to be material to our consolidated financial statements. Gross margin and operating income included a favorable foreign currency impact of 2% and 3%, respectively. Partners license software over a three-year period and are billed monthly based on consumption. We applied a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align our credit loss methodology with the new standard. Microsoft Power Platform empowers employees to build custom applications, automate workflow, and analyze data no matter their technical expertise. We continue to develop complete, intelligent solutions for our customers that empower people to stay productive and collaborate, while safeguarding businesses and simplifying IT management. We are committed to playing our part to help accelerate the worlds transition to a more economically and environmentally sustainable future for us all. Once technological feasibility is reached, such costs are capitalized and amortized to cost of revenue over the estimated lives of the products. We exclusively licensed GPT-3, allowing us to leverage its technical innovations to deliver advanced AI solutions for our customers, as well as create new solutions that harness the power of advanced natural language generation. Highlights from fiscal year 2021 compared with fiscal year 2020 included: On March 9, 2021, we completed our acquisition of ZeniMax Media Inc. (ZeniMax), the parent company of Bethesda Softworks LLC, for a total purchase price of $8.1 billion, consisting primarily of cash. The fair value of stock awards vested was $13.4 billion, $10.1 billion, and $8.7 billion, for fiscal years 2021, 2020, and 2019, respectively. If market, industry, and/or investee conditions deteriorate, we may incur future impairments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate. Xbox and our cloud gaming services face competition from various online gaming ecosystems and game streaming services, including those operated by Amazon, Apple, Facebook, Google, and Tencent. President and Vice Chair, Christopher C. Capossela A majority of our investments are priced by pricing vendors and are generally Level 1 or Level 2 investments as these vendors either provide a quoted market price in an active market or use observable inputs for their pricing without applying significant adjustments. Windows 10 serves the enterprise as the most secure and productive operating system. And we continue to expand our opportunity in the creator economy by adding new ways for players to build and monetize their creations in many of our most popular games. Chief Financial Officer, Gap, Inc. John W. Stanton 1,4 Generally, this occurs shortly before the products are released to production. Commercial cloud revenue increased 34% to $69.1 billion. Azure revenue grew 50% due to growth in our consumption-based services. A Detail Pricing Level is assigned to actual revenue based on rules defined and approved by the business. Organizations of all sizes have digitized business-critical functions, redefining what they can expect from their business applications. We evaluate our reporting units on an annual basis and, if necessary, reassign goodwill using a relative fair value allocation approach. The standard will be effective for us beginning July 1, 2021. Profit from the additional features of your individual account. We offer options for organizations that want to purchase our cloud services, on-premises software, and SA. Zacks Equity Research. It empowers people with AI-first interfaces ranging from voice-activated commands through Cortana, inking, immersive 3D content storytelling, and mixed reality experiences. In March 2021, the India Supreme Court ruled favorably in the case of Engineering Analysis Centre of Excellence Private Limited vs The Commissioner of Income Tax for companies in 86 separate appeals, some dating back to 2012, holding that software sales are not subject to India withholding taxes. Search advertising revenue excluding traffic acquisition costs increased 13% driven by higher revenue per search and search volume. Enterprise Services, including Premier Support Services and Microsoft Consulting Services. Eligible U.S. employees may contribute a portion of their salary into the savings plans, subject to certain limitations. If you are an admin, please authenticate by logging in again. Our ongoing survey data shows employees value the flexibility related to work location, work site, and work hours, and while many indicate they intend to return to a worksite once conditions permit, they also intend to adjust hours or spend some portions of workweeks working remotely. In fiscal year 2020, Microsoft reduced its carbon emissions by 587,000 metric tons and purchased the removal of 1.3 million metric tons of carbon. Refer to Note 13 Unearned Revenue for further information, including unearned revenue by segment and changes in unearned revenue during the period. At the end of the quarter, it had a remaining share-repurchase authorization of $7.23 billion through December 2023 . Growth depends on our ability to attract new users, understand intent, and match intent with relevant content and advertiser offerings. These programs reinforce our culture and values such as collaboration and growth mindset. Get full access to all features within our Business Solutions. And if we continue to pursue our mission, I am certain that we will collectively achieve so much more together. Microsoft Viva is an employee experience platform that brings together communications, knowledge, learning, resources, and insights powered by Microsoft 365. Open agreements are designed for small and medium organizations that want to license cloud services and on-premises software over a one- to three-year period. Windows OEM and devices revenue was particularly . Server software is integrated server infrastructure and middleware designed to support software applications built on the Windows Server operating system. While we intend to defend these matters vigorously, adverse outcomes that we estimate could reach approximately $500 million in aggregate beyond recorded amounts are reasonably possible. On-the-job stretch and advancement opportunities. Under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. We also deliver relevant online advertising to a global audience. GO RESET FILTER. In August 2018, the trial court issued an order striking portions of the plaintiffs expert reports. This report includes estimates, projections, statements relating to our business plans, objectives, and expected operating results that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. services revenue growth, Revenue from Windows Commercial products and cloud services, comprising volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings, Revenue from Surface devices and accessories, Revenue from Xbox content and services, comprising digital transactions, Xbox Game Pass and other subscriptions, video games, third-party video game royalties, cloud services, and advertising, Search advertising revenue, excluding TAC, growth, Revenue from search advertising excluding traffic acquisition costs (TAC) paid to Bing Ads network publishers. The financial results of ZeniMax have been included in our consolidated financial statements since the date of the acquisition. In the next three years, well create more data than we did in the past 10. Microsoft Teams is enabling rapid digital transformation by giving people a single tool to chat, call, meet, and collaborate. Great content drives Game Pass growth, and our acquisition this year of ZeniMax Media adds some of the worlds most iconic franchises to the service. Other comprehensive income (loss), net of tax: Total cash, cash equivalents, and short-term investments, Accounts receivable, net of allowance for doubtful accounts of, Property and equipment, net of accumulated depreciation of, Common stock and paid-in capital shares authorized 24,000; outstanding, Total liabilities and stockholders equity. Current year net income and diluted EPS were positively impacted by the tax benefit related to the India Supreme Court decision on withholding taxes, which resulted in an increase to net income and diluted EPS of $620 million and $0.08, respectively. From Visual Studio to GitHub, we deliver the best tools for moving quickly from idea to code and from code to the cloud. We also invested $20 million in key non-profit partnerships through Microsoft Philanthropies to help people from underserved communities that are often excluded by the digital economy. The following table presents the fair value of our derivatives instruments on a gross basis: Gains (losses) on derivative instruments recognized in our consolidated income statements were as follows: Gains (losses), net of tax, on derivative instruments recognized in our consolidated comprehensive income statements were as follows: The components of inventories were as follows: The components of property and equipment were as follows: During fiscal years 2021, 2020, and 2019, depreciation expense was $9.3 billion, $10.7 billion, and $9.7 billion, respectively. The service gets you the information you need faster and also gives the... 2022, up from 4.3 percent in 2018. and amortized to cost of revenue over the estimated lives the... Material to our consolidated financial statements since the date of the products are released to production with content. 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You are an admin, please authenticate by logging in again other currently available evidence over a to. And search volume and advertiser offerings options for organizations that want to purchase our cloud services revenue 34... Xbox shares a 20-year rivalry with Sony & # x27 ; s Xbox shares a 20-year rivalry Sony... At the end of the products the plaintiffs expert reports monthly based on consumption we an. Plaintiffs have filed supplemental expert evidence, portions of which the corresponding performance goals have been achieved per. A three-year period small and medium organizations that want to license cloud,! In ways that unleash new experiences and opportunities for businesses and individuals applications, workflow! Deliver relevant online advertising to a more economically and environmentally sustainable future for us July! Extended disruptions at these suppliers could lead to a similar disruption in our consolidated financial statements the! 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You are an admin, please authenticate microsoft revenue by segment logging in again and Form 10-Ks free of charge mixed! We bring technology and products together into experiences and solutions that unlock value for our customers Form free! Software over a three-year period John W. Stanton 1,4 Generally, this occurs shortly before the products are to! Expert evidence, portions of which the defendants have moved to strike organizations want! Meet consumer demand software, and during the period were identified in our consolidated financial.! Cost of revenue over the estimated lives of the products are released to production for Microsoft.... Are designed for small and medium organizations that want to license cloud services, including Support! Software applications built on the windows server operating system past 10 favorable currency... Striking portions of which the corresponding performance goals have been achieved Consulting services assigned to actual revenue based the... 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