Q4 2024 Microsoft Corp Earnings Call Transcript
Key Points
- Microsoft Corp (MSFT) reported annual revenue of over $245 billion, up 15% year over year.
- Microsoft Cloud revenue surpassed $135 billion, up 23% year over year.
- Azure AI customer base grew nearly 60% year over year, with over 60,000 customers.
- GitHub Copilot adoption increased by 180% year over year, contributing significantly to GitHub's $2 billion annual revenue run rate.
- LinkedIn saw accelerated member growth and record engagement, with premium sign-ups increasing by 51% this fiscal year.
- Azure growth was slightly lower than expected in some European regions due to economic softness.
- Operating expenses increased by 13%, partly due to the Activision acquisition.
- Microsoft Cloud gross margin percentage decreased by roughly 2 points year over year.
- Xbox hardware revenue decreased by 42%, reflecting challenges in the gaming hardware market.
- Capacity constraints in AI and Azure are expected to persist into the first half of the next fiscal year.
Greetings, and welcome to the Microsoft fiscal year 2024 fourth-quarter earnings conference Call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the conference over to your host, Brett Iversen, Vice President of Investor Relations.
Good afternoon and thank you for joining us today. On the call with me are Satya Nadella, Chairman and Chief Executive Officer; Amy Hood, Chief Financial Officer; Alice Jolla, Chief Accounting Officer; and Keith Dolliver, Corporate Secretary and Deputy General Counsel.
On the Microsoft Investor Relations website, you can find our earnings press release and financial summary slide deck, which is intended to supplement our prepared remarks during today's call and provides the reconciliation of differences between GAAP and non-GAAP financial measures. More detailed outlook slides will be available on the Microsoft Investor Relations website when we provide outlook commentary on today's call.
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