dollars)." In the first fiscal quarter of 2023, revenue in the Microsoft Intelligent Cloud segment, which includes the Azure public cloud, Windows Server, SQL Server, Nuance, and Enterprise Services, was $20 . We recorded over $200 million in adjusted EBITDA for the quarter, an improvement of . Our products include operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools, and video games. Growth depends on our ability to reach new users, add value to our core product set, and continue to expand our product and service offerings into new markets. Microsoft Corporation, Sandra E. Peterson 2,3 Actual results and outcomes may differ from managements estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to COVID-19. We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. Lease expense for lease payments is recognized on a straight-line basis over the lease term. A Reporting Pricing Level is the established level for Budget/Forecast to Actual revenue comparisons possible. The gamer remains at the heart of the Xbox ecosystem. Microsoft's global revenue grew from fiscal year 2021 to 2022, increasing by about 18 percent year-on-year and reaching over 198 billion U.S. . Press releases on quarterly earnings, product and service announcements, legal developments, and international news. Partnering with organizations on their digital transformation during this period is one of our largest opportunities and we are uniquely positioned to become the strategic digital transformation platform and partner of choice; their success is our success. We are building a Planetary Computer to help manage and protect Earths natural systems. Over the past year, we introduced hundreds of new features, from new presenter modes to new inclusive meeting experiences, that make it easy for everyone to be full participants in meetings, whether theyre joining from home, the office, a conference room, or a factory floor. Microsoft's gaming revenue matched analysts' forecasts. Microsoft Teams is enabling rapid digital transformation by giving people a single tool to chat, call, meet, and collaborate. The estimated fair values are based on Level 2 inputs. Shares of our common stock may be purchased by employees at three-month intervals at 90% of the fair market value on the last trading day of each three-month period. To date, weve committed cash, technology, and other resources with a value of more than $410 million to support ongoing COVID-19 response efforts. Machine Translation Market 2023 Structure Along With Size, Trends, Revenue, Market segments, Forecast to 2029 Published: Feb. 16, 2023 at 12:44 a.m. The markets for software, devices, and cloud-based services are dynamic and highly competitive. Deferred tax assets are reported net of a valuation allowance when it is more likely than not that a tax benefit will not be realized. We record a receivable related to revenue recognized for multi-year on-premises licenses as we have an unconditional right to invoice and receive payment in the future related to those licenses. If our review indicates a reduction in utility below carrying value, we reduce our inventory to a new cost basis through a charge to cost of revenue. With Dynamics 365, were building a new generation of business applications to meet this challenge. We must continue to evolve and adapt over an extended time in pace with this changing environment. Our fixed-income investments are exposed to interest rate risk and credit risk. We have committed $9.5 billion for the construction of new buildings, building improvements, and leasehold improvements as of June 30, 2021. However, some of our products contain certain components for which there are very few qualified suppliers. The following table reconciles our financial results reported in accordance with GAAP to non-GAAP financial results: Cash, cash equivalents, and short-term investments totaled $130.3 billion and $136.5 billion as of June 30, 2021 and 2020. Executive Vice President, Human Resources. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. At Microsoft, were providing technology and resources to help our customers navigate a remote environment. Revenue is recognized net of allowances for returns and any taxes collected from customers, which are subsequently remitted to governmental authorities. Employer-funded retirement benefits for all plans were $1.2 billion, $1.0 billion, and $877 million in fiscal years 2021, 2020, and 2019, respectively, and were expensed as contributed. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. Li Auto's pure EV lineup, which will come later, will also be priced in a range of 200,000 yuan to 500,000 yuan, Li added. We test goodwill for impairment annually on May 1 at the reporting unit level, primarily using a discounted cash flow methodology with a peer-based, risk-adjusted weighted average cost of capital. We operate our business and report our financial performance using three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. Its personal computing segment was an eyesore, impacted by the broader decline in PC sales, as revenue in the category fell 19% to $14.2 billion. We manage credit exposures relative to broad-based indices and to facilitate portfolio diversification. GlaxoSmithKline, Hugh F. Johnston 1 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. The rise of hybrid work will be one of the most profound changes to the way people work in more than a century. Server software is integrated server infrastructure and middleware designed to support software applications built on the Windows Server operating system. Microsoft reported $51.7 billion in revenue for the second fiscal quarter, a 20 percent increase year over year. We also have an ESPP for all eligible employees. It is impracticable for us to separately identify the amount of amortization and depreciation by segment that is included in the measure of segment profit or loss. Nine of these cases were filed in 2002 and are consolidated for certain pre-trial proceedings; the remaining cases are stayed. We may also purchase or license technology that we incorporate into our products and services. Cash paid for interest on our debt for fiscal years 2021, 2020, and 2019 was $2.0 billion, $2.4 billion, and $2.4 billion, respectively. In cases where we allocate revenue to software updates, primarily because the updates are provided at no additional charge, revenue is recognized as the updates are provided, which is generally ratably over the estimated life of the related device or license. We are required to estimate the fair value of the investment to determine the amount of the impairment loss. Microsoft is a technology company whose mission is to empower every person and every organization on the planet to achieve more. The decrease from the federal statutory rate in fiscal year 2021 is primarily due to earnings taxed at lower rates in foreign jurisdictions resulting from producing and distributing our products and services through our foreign regional operations centers in Ireland and Puerto Rico, tax benefits relating to stock-based compensation, and tax benefits from the India Supreme Court decision on withholding taxes. We have more than doubled our percentage share of transaction volume with Black- and African American-owned financial institutions and increased our deposits with Black- and African American-owned minority depository institutions, enabling increased funds into local communities. 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. Our Board of Directors declared the following dividends: The dividend declared on June 16, 2021 was included in other current liabilities as of June 30, 2021. The standard will be effective for us beginning July 1, 2021. In addition to the operations centers, we also operate datacenters throughout the Americas, Europe, Australia, and Asia, as well as in the Middle East and Africa. DIRECTORS AND EXECUTIVE OFFICERS OF MICROSOFT CORPORATION, Satya Nadella For certain equipment leases, such as vehicles, we account for the lease and non-lease components as a single lease component. Azure SQL Database makes it possible for customers to take SQL Server from their on-premises datacenter to a fully managed instance in the cloud to utilize built-in AI. Net Recognized Gains (Losses) on Investments. July 29, 2021. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Internal development allows us to maintain competitive advantages that come from product differentiation and closer technical control over our products and services. In middleware, we compete against Java vendors. In its 2022 financial year, Microsoft generated 63.4 billion U.S. dollars from its productivity and business processes segment and a further 75.3 billion . In these instances, we may use information such as the size of the customer and geographic region in determining the SSP. LinkedIn revenue is mainly affected by demand from enterprises and professional organizations for subscriptions to Talent Solutions, Learning Solutions, Sales Solutions, and Premium Subscriptions offerings, as well as member engagement and the quality of the sponsored content delivered to those members to drive Marketing Solutions. For derivative instruments that are not designated as hedges, gains and losses from changes in fair values are primarily recognized in other income (expense), net. Lead Independent Director, Get in touch with us now. We believe our allowances for income tax contingencies are adequate. Tackling security from all angles with our integrated, end-to-end solutions spanning security, compliance, identity, and management, across all clouds and platforms. But our ability to make sense of data is growing more difficult as the volume, velocity, and variety expand. We will include as many of your questions as possible during the Q&A session of the meeting and will provide answers to questions on the Microsoft Investor Relations website under the Annual Meeting page. We evaluate our reporting units on an annual basis and, if necessary, reassign goodwill using a relative fair value allocation approach. To build a more inclusive economy, we also have a responsibility to help close the Disability Divide, which impacts more than 1 billion people with disabilities around the world. . Returns and credits are estimated at contract inception and updated at the end of each reporting period if additional information becomes available. We review debt investments quarterly for credit losses and impairment. $ 42,485. In February 2012, the IRS withdrew its 2011 Revenue Agents Report related to unresolved issues for tax years 2004 to 2006 and reopened the audit phase of the examination. $ 33,773. Table Power BI. Xbox Cloud Gaming is Microsofts game streaming technology that is complementary to our console hardware and gives fans the ultimate choice to play the games they want, with the people they want, on the devices they want. Making a difference in the lives of each other, our customers, and the world around us. 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. While were proud of our progress, we know we have much more work to do to help our communities, increase representation, and strengthen our culture of inclusion to influence broader, systemic change. In January, we released our first annual sustainability report, sharing our progress toward becoming carbon negative, zero waste, and water positive by 2030. The pandemic has underscored that without it, people lack access to education, healthcare, economic opportunity, and more. Our most significant expenses are related to compensating employees; designing, manufacturing, marketing, and selling our products and services; datacenter costs in support of our cloud-based services; and income taxes. We determine if an arrangement is a lease at inception. The investments are predominantly U.S. dollar-denominated securities, but also include foreign currency-denominated securities to diversify risk. Assessed the terms in the customer agreement and evaluated the appropriateness of managements application of their accounting policies, along with their use of estimates, in the determination of revenue recognition conclusions. Executive Vice President, Chief Financial Officer, Judson Althoff And, finally, our comprehensive portfolio of AI tools, frameworks, and infrastructure enables developers to build solutions that comprehend speech, make predictions, provide insights, and support decision-making. 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