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1 {{box cssClass="floatinginfobox" title="**Contents**"}}
2 {{toc/}}
3 {{/box}}
4
5 = Summary =
6
7 * Founded in 1975, Microsoft Corporation develop and support software, services, devices, and solutions.
8 * Microsoft offer services, including cloud-based solutions that provide customers with software, services, platforms, and content
9 * As of June 30, 2022, Microsoft employed approximately 221,000 people on a full-time basis, 122,000 in the U.S. and 99,000 internationally
10
11 [[image:MSFT0.png||height="208" width="721"]]
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13
14 Microsoft Corporation (Nasdaq:MSFT) is a technology company founded in 1975. the company develops and supports software, services, devices, and solutions that deliver. The company offers an array of services, including cloud-based solutions that provide customers with software, services, platforms, and content, and the company provides solution support and consulting services. The company also delivers relevant online advertising to a global audience.
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16
17 = Recent developments =
18
19 **Mercedes-Benz and Microsoft collaborate to boost efficiency, resilience and sustainability in car production**{{footnote}}https://news.microsoft.com/2022/10/12/mercedes-benz-and-microsoft-collaborate-to-boost-efficiency-resilience-and-sustainability-in-car-production/{{/footnote}}
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21
22 October 12, 2022; Mercedes-Benz and Microsoft Corp. collaborate to make vehicle production more efficient, resilient and sustainable. With the new MO360 Data Platform, Mercedes-Benz is connecting its around 30 passenger car plants worldwide to the Microsoft Cloud, enhancing transparency and predictability across its digital production and supply chain. The MO360 Data Platform is the evolution of Mercedes-Benz’ digital production ecosystem MO360 and allows teams to identify potential supply chain bottlenecks faster and enable a dynamic prioritization of production resources toward electric and Top-End vehicles. This unified data platform is standardized on Microsoft Azure, providing Mercedes-Benz with flexibility and cloud computing power to run artificial intelligence (AI) and analytics at global scale while addressing cybersecurity and compliance standards across regions. The platform is already available to teams in EMEA and will be deployed in the United States and China.
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24
25 **Microsoft Corporation to Activision Blizzard**{{footnote}}https://news.microsoft.com/2022/01/18/microsoft-to-acquire-activision-blizzard-to-bring-the-joy-and-community-of-gaming-to-everyone-across-every-device/{{/footnote}}
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27 On January 18, 2022, the company entered into a definitive agreement to acquire Activision Blizzard, Inc. for $95.00 per share in an all-cash transaction valued at $68.7 billion, inclusive of Activision Blizzard’s net cash. The acquisition has been approved by Activision Blizzard’s shareholders, and the company expects it to close in the fiscal year 2023, subject to the satisfaction of certain regulatory approvals and other customary closing conditions.
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29
30 [[image:MSFT1.jpg]]
31
32
33 = Financial Highlights =
34
35 **FY22 Q4 Results**
36
37 July 26, 2022; Microsoft Corp. announced the following results for the quarter ended June 30, 2022{{footnote}}https://www.microsoft.com/en-us/investor/earnings/fy-2022-q4/press-release-webcast{{/footnote}}
38
39 * Revenue was $51.9 billion and increased 12% (up 16% in constant currency)
40 * Operating income was $20.5 billion and increased 8% (up 14% in constant currency)
41 * Net income was $16.7 billion and increased 2% (up 7% in constant currency)
42 * Diluted earnings per share was $2.23 and increased 3% (up 8% in constant currency)
43
44 Revenue increased $5.7 billion or 12% driven by growth in Intelligent Cloud and Productivity and Business Processes. Intelligent Cloud revenue increased driven by Azure and other cloud services. Productivity and Business Processes revenue increased driven by Office 365 Commercial and LinkedIn. More Personal Computing revenue increased driven by Search and news advertising.
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47 Cost of revenue increased $2.4 billion or 17% driven by growth in Microsoft Cloud.
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49
50 Gross margin increased $3.3 billion or 10% driven by growth in Intelligent Cloud and Productivity and Business Processes.
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52
53 Operating expenses increased $1.8 billion or 14% driven by investments in cloud engineering, LinkedIn, and Nuance.
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55
56 Operating income increased $1.4 billion or 8% driven by growth in Intelligent Cloud and Productivity and Business Processes.
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58
59 Revenue, gross margin, and operating income included an unfavorable foreign currency impact of 4%, 5%, and 6%, respectively. Cost of revenue and operating expenses both included a favorable foreign currency impact of 2%.
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61
62 **Fiscal Year 2022 Results**
63
64 * Revenue was $198.3 billion and increased 18% (up 19% in constant currency)
65 * Operating income was $83.4 billion and increased 19% (up 21% in constant currency)
66 * Net income was $72.7 billion GAAP and increased 19%, and $69.4 billion non-GAAP and increased 15% (up 16% in constant currency)
67 * Diluted earnings per share was $9.65 GAAP and increased 20%, and $9.21 non-GAAP and increased 16% (up 17% in constant currency)
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69 Revenue increased $30.2 billion or 18% driven by growth across each of its segments. Intelligent Cloud revenue increased driven by Azure and other cloud services. Productivity and Business Processes revenue increased driven by Office 365 Commercial and LinkedIn. More Personal Computing revenue increased driven by Search and news advertising and Windows.
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71
72 Cost of revenue increased $10.4 billion or 20% driven by growth in Microsoft Cloud. Gross margin increased $19.8 billion or 17% driven by growth across each of its segments. Operating income increased $13.5 billion or 19%.
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74
75 (% style="width:802px" %)
76 (% class="info" %)|(% style="width:414px" %)(In millions, except percentages and per share amounts)|(% style="width:35px" %) |(% style="width:82px" %)2022|(% style="width:36px" %) |(% style="width:85px" %)2021|(% style="width:142px" %)(((
77 Percentage Change
78 )))
79 |(% style="width:414px" %)Revenue|(% style="width:35px" %)$|(% style="text-align:right; width:82px" %)198,270|(% style="text-align:right; width:36px" %)$|(% style="text-align:right; width:85px" %)168,088|(% style="width:142px" %)18%
80 |(% style="width:414px" %)Gross margin|(% style="width:35px" %) |(% style="text-align:right; width:82px" %)135,620|(% style="text-align:right; width:36px" %) |(% style="text-align:right; width:85px" %)115,856|(% style="width:142px" %)17%
81 |(% style="width:414px" %)Operating income|(% style="width:35px" %) |(% style="text-align:right; width:82px" %)83,383|(% style="text-align:right; width:36px" %) |(% style="text-align:right; width:85px" %)69,916|(% style="width:142px" %)19%
82 |(% style="width:414px" %)Net income|(% style="width:35px" %) |(% style="text-align:right; width:82px" %)72,738|(% style="text-align:right; width:36px" %) |(% style="text-align:right; width:85px" %)61,271|(% style="width:142px" %)19%
83 |(% style="width:414px" %)Diluted earnings per share|(% style="width:35px" %) |(% style="text-align:right; width:82px" %)9.65|(% style="text-align:right; width:36px" %) |(% style="text-align:right; width:85px" %)8.05|(% style="width:142px" %)20%
84 |(% style="width:414px" %)Adjusted net income (non-GAAP)|(% style="width:35px" %) |(% style="text-align:right; width:82px" %)69,447|(% style="text-align:right; width:36px" %) |(% style="text-align:right; width:85px" %)60,651|(% style="width:142px" %)15%
85 |(% style="width:414px" %)Adjusted diluted earnings per share (non-GAAP)|(% style="width:35px" %) |(% style="text-align:right; width:82px" %)9.21|(% style="text-align:right; width:36px" %) |(% style="text-align:right; width:85px" %)7.97|(% style="width:142px" %)16%
86
87 [[image:MSFT2.jpg]]
88
89
90 = Business Overview =
91
92 The company operate its business in three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing.{{footnote}}https://fintel.io/doc/sec-microsoft-corp-789019-10k-2022-july-28-19201-7787{{/footnote}}
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94
95 == Productivity and Business Processes ==
96
97 The company's Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. This segment primarily comprises:
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99 * Office Commercial (Office 365 subscriptions, the Office 365 portion of Microsoft 365 Commercial subscriptions, and Office licensed on-premises), comprising Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Microsoft Viva.
100 * Office Consumer, including Microsoft 365 Consumer subscriptions, Office licensed on-premises, and other Office services.
101 * LinkedIn, including Talent Solutions, Marketing Solutions, Premium Subscriptions, and Sales Solutions.
102 * Dynamics business solutions, including Dynamics 365, comprising a set of intelligent, cloud-based applications across ERP, CRM, Customer Insights, Power Apps, and Power Automate; and on-premises ERP and CRM applications.
103
104 == Intelligent Cloud ==
105
106 The company's Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services that can power modern business and developers. This segment primarily comprises:
107
108 * Server products and cloud services, including Azure and other cloud services; SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (“CALs”); and Nuance and GitHub.
109 * Enterprise Services, including Enterprise Support Services, Microsoft Consulting Services, and Nuance professional services.
110
111 == More Personal Computing ==
112
113 The company's More Personal Computing segment consists of products and services that put customers at the center of the experience with its technology. This segment primarily comprises:
114
115 * Windows, including Windows OEM licensing (“Windows OEM”) and other non-volume licensing of the Windows operating system; Windows Commercial, comprising volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings; patent licensing; and Windows Internet of Things.
116 * Devices, including Surface and PC accessories.
117 * Gaming, including Xbox hardware and Xbox content and services, comprising first- and third-party content (including games and in-game content), Xbox Game Pass and other subscriptions, Xbox Cloud Gaming, third-party disc royalties, advertising, and other cloud services.
118 * Search and news advertising.
119
120 As of June 30, 2022, Microsoft employed approximately 221,000 people on a full-time basis, 122,000 in the U.S. and 99,000 internationally. Of the total employed people, 85,000 were in operations, including manufacturing, distribution, product support, and consulting services; 73,000 were in product research and development; 47,000 were in sales and marketing; and 16,000 were in general and administration.
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122
123 Summary of the square footage of office, datacenter, and other facilities owned and leased domestically and internationally as of June 30, 2022
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125
126 (% style="width:457px" %)
127 |(% style="width:196px" %)(Square feet in millions)|(% style="width:93px" %) |(% style="width:88px" %) |(% style="width:77px" %)
128 |(% style="width:196px" %)**Location**|(% style="width:93px" %)**Owned**|(% style="width:88px" %)**Leased**|(% style="width:77px" %)**Total**
129 |(% style="width:196px" %)U.S.|(% style="width:93px" %)25|(% style="width:88px" %)19|(% style="width:77px" %)44
130 |(% style="width:196px" %)International|(% style="width:93px" %)8|(% style="width:88px" %)21|(% style="width:77px" %)29
131 |(% style="width:196px" %)Total|(% style="width:93px" %)33|(% style="width:88px" %)40|(% style="width:77px" %)73
132
133
134 = Company History =
135
136 (% style="width:930px" %)
137 |**Year**|(% style="width:851px" %)**Event**
138 |1975|(% style="width:851px" %)Microsoft founded
139 |1981|(% style="width:851px" %)IBM introduces its personal computer with Microsoft’s 16-bit operating system, MS-DOS 1.0
140 |1986|(% style="width:851px" %)Microsoft stock goes public
141 |1989|(% style="width:851px" %)Microsoft introduces earliest version of Office suite of productivity applications
142 |1990|(% style="width:851px" %)Microsoft launches Windows 3.0
143 |1995|(% style="width:851px" %)Microsoft launches Windows 95
144 |1998|(% style="width:851px" %)Microsoft launches Windows 98
145 |2000|(% style="width:851px" %)Microsoft launches Windows 2000
146 |2001|(% style="width:851px" %)Microsoft launches Windows XP
147 |2001|(% style="width:851px" %)Microsoft launches Xbox
148 |2003|(% style="width:851px" %)Microsoft launches Windows Server 2003
149 |2003|(% style="width:851px" %)Microsoft launches Microsoft Office System
150 |2007|(% style="width:851px" %)Microsoft launches Windows Vista and the 2007 Microsoft Office System to consumers worldwide
151 |2009|(% style="width:851px" %)Microsoft launches Windows 7; opens first physical store in Scottsdale, Arizona
152 |2010|(% style="width:851px" %)Microsoft launches general availability of Office 2010
153 |2010|(% style="width:851px" %)Microsoft launches Windows Phone 7
154 |2011|(% style="width:851px" %)Microsoft launches Office 365
155 |2012|(% style="width:851px" %)Microsoft acquires Yammer
156 |2012|(% style="width:851px" %)Microsoft launches Visual Studio 2012
157 |2012|(% style="width:851px" %)Microsoft launches Windows 8 and Microsoft Surface
158 |2013|(% style="width:851px" %)Microsoft launches Outlook.com
159 |2013|(% style="width:851px" %)Microsoft unveils Xbox One
160 |2013|(% style="width:851px" %)Microsoft announces decision to acquire Nokia’s devices and services business, license Nokia’s patents and mapping services
161 |2013|(% style="width:851px" %)Microsoft launches Windows 8.1
162 |2014|(% style="width:851px" %)Microsoft completes acquisition of Nokia Devices and Services business
163 |2014|(% style="width:851px" %)Microsoft announces Office apps for Android tablets
164 |2015|(% style="width:851px" %)Microsoft launches Windows 10
165 |2015|(% style="width:851px" %)Microsoft launches Office 2016
166 |2016|(% style="width:851px" %)Microsoft launches SQL Server 2016
167 |2016|(% style="width:851px" %)Microsoft completes acquisition of LinkedIn
168 |2017|(% style="width:851px" %)Microsoft releases Visual Studio 2017
169 |2017|(% style="width:851px" %)Surface Laptop and new Surface Pro available in 25 markets worldwide
170 |2017|(% style="width:851px" %)Microsoft launches Xbox One X
171 |2018|(% style="width:851px" %)Microsoft completes GitHub acquisition
172 |2020|(% style="width:851px" %)Microsoft announces plans to acquire ZeniMax Media and its game publisher, Bethesda Softworks
173 |2020|(% style="width:851px" %)Microsoft introduces Surface Laptop Go
174 |2020|(% style="width:851px" %)Microsoft introduces Azure Space
175 |2021|(% style="width:851px" %)Microsoft introduces Windows 11
176 |2021|(% style="width:851px" %)Microsoft unveils Windows 365
177 |2022|(% style="width:851px" %)Microsoft announces plans to acquire Activision Blizzard
178 |2022|(% style="width:851px" %)Microsoft completes acquisition of Nuance
179
180
181 = References =
182
183 {{putFootnotes/}}
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