Microsoft closed its fiscal fourth quarter with higher revenue and profit. The announcement separates company-wide results, cloud-segment revenue and growth measures adjusted for exchange-rate movements; these figures describe different parts of the business.
Quarterly revenue and the cloud segment
Reuters reported on July 30, 2024 that Microsoft's revenue rose 15% to US$64.7 billion in the quarter ended June 30. Intelligent Cloud revenue increased 19% to US$28.5 billion. The reporting distinguishes that segment from the company's overall sales.
Profit and the basis of comparison
The company's July 30 release records operating income of US$27.9 billion, net income of US$22.0 billion and diluted earnings per share of US$2.95. Reported revenue growth was 15%, compared with 16% on a constant-currency basis. Azure and other cloud services revenue grew 29% as reported.
Separate the reporting levels
- Total company revenue covers more than the cloud segment.
- A segment's revenue is not identical to the revenue of one service within it.
- A constant-currency comparison is not an additional stream of sales.
The release explains that constant-currency information removes the effect of exchange-rate changes for comparison. It is therefore useful to identify the basis whenever a growth percentage is cited. Moving between reported and constant-currency percentages without saying so can make two descriptions of the same period appear inconsistent.
Quarterly results are not full-year results
The fiscal-year close also brings annual figures into the same reporting package. A quarterly total should not be compared directly with an annual total as though both covered the same duration. The period label belongs beside the amount, especially when results are reused in a company overview or a presentation.
Similarly, an increase in revenue does not by itself establish the return on a particular infrastructure investment. Company sales, operating profit and capital commitments answer different questions. This update retains the quarterly financial record without turning broad growth into a claim that every product or investment produced the same outcome.
Company: Microsoft Corporation. Investor contact published with the release: Brett Iversen, Vice President, Investor Relations, +1 425 706 4400. Investor website: https://www.microsoft.com/en-us/investor.
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