Microsoft’s fourth-quarter net profit was $11.202 billion, down 15% year-on-year

Beijing time, July 23, Microsoft today announced the fourth quarter and full-year financial results for the fiscal year ending June 30. Microsoft’s fourth-quarter revenue was $38.033 billion, up 13 percent from $33.717 billion a year earlier, and net profit was $11.202 billion, down 15 percent from $13.187 billion a year earlier, according to the results.

Microsoft's fourth-quarter net profit was $11.202 billion, down 15% year-on-year

In U.S. trading Wednesday, Microsoft shares rose $3.00, or 1.44 percent, to $211.75 in regular trading on the Nasdaq. Microsoft shares were down $5.91, or 2.79 percent, at $205.84 in after-hours trading as of 4:11 p.m. Est Of the Time on Wednesday (4:11 a.m. Local time on Thursday). Microsoft’s shares have peaked at $216.38 and are at $130.78 in the past 52 weeks.

Microsoft’s fourth-quarter results are key.

Total revenue: Microsoft’s fourth-quarter revenue was $38.033 billion, up 13 percent from $33.717 billion a year earlier, according to U.S. general accounting standards (GAAP).

Net profit: Net profit was $11.202 billion, down 15 percent from $13.187 billion a year earlier. Diluted earnings per share were $1.46, down 15 percent from $1.71 a year earlier, and net income, based on non-U.S. GAAP, rose 5 percent from $10.62 billion a year earlier and diluted earnings per share rose 7 percent from $1.37 a year earlier.

Total revenue cost: $12.339 billion, up 18.5 percent from $10.412 billion a year earlier;

Gross profit: $25.694 billion, up 10% from $23.305 billion a year earlier;

Research and development spending was $5.214 billion, up 15.5 percent from $4.513 billion a year earlier; sales and marketing spending was $5.417 billion, up 9 percent from $4.962 billion a year earlier; and general and administrative spending was $1.656 billion, up 16 percent from $1.425 billion a year earlier.

Operating profit: $13.407 billion, up 8% from $12.405 billion a year earlier, and operating profit was up 8% year-on-year from $12.405 billion, up 12% year-on-year at constant exchange rates, compared with $12.405 billion in the same period a year earlier.

Performance highlights:

Microsoft's fourth-quarter net profit was $11.202 billion, down 15% year-on-year

Revenue in the productivity and business process division was $11.8 billion, up 6% year-on-year and 8% year-on-year at constant exchange rates.

Office business products and cloud services revenue increased 5% year-on-year and 7% year-on-year at constant exchange rates, driven by Office 365 business revenue up 19% year-on-year (22% increase at constant exchange rate).

Office consumer products and cloud services revenue increased 6% year-on-year, 7% year-on-year, and Office 365 consumer subscribers grew to 42.7 million;

Microsoft's fourth-quarter net profit was $11.202 billion, down 15% year-on-year

Microsoft's fourth-quarter net profit was $11.202 billion, down 15% year-on-year

LinkedIn revenue increased by 10% year-on-year and 11% year-on-year at constant exchange rates;

Dynamics product and cloud services revenue grew 13% year-on-year and 15% year-on-year at constant exchange rates, driven by a 38% increase in Dynamics 365 revenue (40% at a constant exchange rate).

Revenue in the smart cloud division was $13.4 billion, up 17% year-on-year and up 19% year-on-year at constant exchange rates.

Server products and cloud services revenue increased by 19% (21% at constant exchange rate), driven by a 47% increase in Azure cloud services revenue (50% on a constant exchange rate).

Enterprise service revenue unchanged, at fixed exchange rate, 2% year-on-year;

Revenue in the more individual computing division was $12.9 billion, up 14% year-on-year and up 16% year-on-year at constant exchange rates.

Microsoft's fourth-quarter net profit was $11.202 billion, down 15% year-on-year

Windows OEM revenue up 7% year-on-year;

Revenue from Windows commercial products and cloud services increased by 9% year-on-year and 11% year-on-year at constant exchange rates.

Xbox content and services revenue grew 65%, up 68% year-on-year at constant exchange rates.

Surface revenue sits up 28% year-on-year and 30% year-on-year at constant exchange rates.

Excluding traffic acquisition costs, search advertising revenue decreased by 18% yoY and 17% yoY at fixed exchange rates.

Operating expenses were $12.3 billion, up 13 percent, including $450 million for the closure of Microsoft’s brick-and-mortar stores.

Microsoft returned $8.9 billion to shareholders in the fourth quarter of fiscal 2020 in the form of share buybacks and dividends, up 16 percent from the fourth quarter of fiscal 2019.

Microsoft’s full-year results for fiscal 2020.

Total revenue: Microsoft’s total revenue for fiscal 2020 was $143.015 billion, up 14 percent from $125.843 billion in fiscal 2019. Excluding certain one-time items (based on non-U.S. GAAP), Microsoft’s fiscal 2020 revenue increased 14 percent year-on-year, excluding exchange rate movements, up 15 percent year-on-year.

Net profit: Microsoft’s net profit for fiscal 2020 was $44.281 billion, up 13 percent from $39.240 billion in fiscal 2019, and net profit for fiscal 2019 was up 20 percent from $36.830 billion in fiscal 2019, excluding exchange rate changes. Microsoft’s fY20 diluted earnings per share were $5.76, up 14 percent from $5.06 in fiscal 2019, and without U.S. GAAP, Microsoft’s diluted earnings per share in fiscal 2020 were up 21 percent from $4.75 a year earlier, excluding exchange rate changes.

Operating profit: Microsoft’s operating profit for fiscal 2020 was $52.959 billion, up 23% from $42.959 billion in fiscal 2019, and Microsoft’s operating profit for fiscal 2020 was up 23% from $36.83 0 billion in fiscal 2020, excluding exchange rate changes.

Executive reviews.

“The past five months have clearly shown that technological intensity is a key factor in a company’s resilience. Organizations that can build their digital capabilities will recover more quickly and become stronger from this crisis,” said Satya Nadella, Microsoft’s CEO. “

“For the first time this fiscal year, our business cloud business has annual revenue of more than $50 billion. This quarter, our business bookings were better than expected, up 12% year-on-year. Amy Hood, Microsoft’s executive vice president and chief financial officer, said, “We remain committed to investing in long-term strategic opportunities while driving growth across the company.” ”