Microsoft announces fourth-quarter 2024 financial results, with sales up 15% year-on-year to 9.86 trillion yen
Microsoft has announced its financial results for the fourth quarter of 2024 (April to June). Although both sales and profits exceeded analyst expectations, the cloud business fell short of sales expectations, causing Microsoft's stock price to temporarily fall despite the strong performance.
FY24 Q4 - Press Releases - Investor Relations - Microsoft
Microsoft (MSFT) Q4 earnings report 2024
https://www.cnbc.com/2024/07/30/microsoft-msft-q4-earnings-report-2024.html
Xbox Hardware Revenue Down 42% From Last Year as Activision Acquisition Continues to Boost Content Sales - IGN
https://www.ign.com/articles/xbox-hardware-revenue-down-42-from-last-year-as-activision-acquisition-continues-to-boost-content-sales
Microsoft's total revenue for the fourth quarter of 2024 is $64.73 billion (approximately 9.86 trillion yen), up 15% year-on-year, and net income is $22.04 billion (approximately 3.36 trillion yen), up 10% year-on-year. Microsoft's revenue for the same period exceeded analyst expectations.
Microsoft's core business, Intelligent Cloud, recorded sales of $28.52 billion (approximately 4.34 trillion yen), up 19% year-on-year. Sales in the Intelligent Cloud division include sales of Azure public cloud, Windows server, Nuance , GitHub, etc. Microsoft CEO Satya Nadella revealed that GitHub's sales will reach $2 billion (approximately 304 billion yen) per year.
Revenue from Azure and other cloud services grew 29% year over year. Despite this, investors sold off the cloud division after it reported weaker-than-expected revenue, sending Microsoft shares down as much as 7% at one point. However, Microsoft has signaled optimism by predicting that cloud growth will accelerate in the first half of 2025.
Of Microsoft's revenue growth of 29% for Azure and other cloud services, 8% is due to AI services. CEO Nadella said, 'This year, our share growth has accelerated with AI.' However, Microsoft's Chief Financial Officer Amy Hood said that demand for Azure's AI services still exceeds available capacity, suggesting that more revenue is expected once capital investments are in place. Microsoft made a similar statement in April 2024.
Microsoft's Productivity and Business Processes division, which includes Office products and LinkedIn, saw revenues of $20.32 billion (approximately 3.1 trillion yen), up 11% year-on-year, while More Personal Computing, which handles Windows, games, search advertising, and more, saw revenues of $15.9 billion (approximately 2.42 trillion yen), up 14% year-on-year. Sales of Windows licenses to OEM manufacturers increased 4% year-on-year. CEO Nadella also revealed that the number of monthly active users in Microsoft's gaming division exceeds 500 million.
While the gaming division as a whole is doing better than the same period last year, it has been revealed that hardware sales have fallen by 42% compared to the same period last year. However, Microsoft is not the only one whose hardware sales are declining. Nintendo also revealed that sales of Nintendo Switch units are on a downward trend when announcing its financial results for the third quarter of fiscal year 2024. Regarding the decline in hardware sales for all of the Nintendo Switch, Xbox Series X/S, and PlayStation 5, game media IGN pointed out that 'it is inevitable as we are approaching the latter half of the product life cycle.'
Nintendo announces third quarter results for fiscal 2024, with sales of 598.6 billion yen and Nintendo Switch sales of 6.9 million units, with OLED models doing well - GIGAZINE
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