Microsoft reported fourth quarter results: revenue of $38 billion, net profit down 15%

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Sina science and technology news in the early morning of July 23, Beijing time, Microsoft released the fourth quarter of fiscal year 2020 and annual financial report today. According to the report, Microsoft’s fourth quarter revenue was $38.033 billion, up 13% from $33.717 billion in the same period last year; net profit was $11.202 billion, down 15% from $13.387 billion in the same period last year. Microsoft’s fourth quarter adjusted earnings per share and revenue exceeded Wall Street analysts’ expectations, but its share price still fell nearly 3% after hours.
Key results in the fourth quarter:
In the quarter ended June 30, Microsoft’s net profit was $11.202 billion, or $1.46 per share, a performance lower than the same period last year. In the fourth quarter of fiscal year 2019, Microsoft’s net profit was $13.387 billion, with earnings per share of $1.71.
Excluding some one-off items (not in accordance with US GAAP), the adjusted net profit of Microsoft in the fourth quarter was still $11.202 billion, up 5% from $10.620 billion in the same period of last year, 8% higher than that in the same period of last year, and the adjusted earnings per share was still $1.46, 7% higher than that of $1.37 in the same period of last year 9% longer than the average analyst expected. According to data provided by Yahoo Finance Channel, 29 analysts had expected Microsoft’s earnings per share to reach $1.37 in the fourth quarter.
Microsoft’s fourth quarter revenue was $38.033 billion, up 13% from $33.717 billion in the same period last year. Excluding some one-off items (not in accordance with US GAAP), Microsoft’s adjusted revenue in the fourth quarter was also $38.033 billion, up 13% from $33.717 billion in the same period of last year. Excluding the impact of exchange rate changes, it increased by 15% year-on-year, which also exceeded analysts’ expectations. According to data provided by Yahoo Finance Channel, 26 analysts had expected Microsoft’s fourth quarter revenue to reach $36.5 billion.
Microsoft’s fourth quarter operating profit was $13.407 billion, up 8% from $12.405 billion in the same period last year. Excluding some one-off items (not in accordance with US GAAP), the adjusted operating profit of Microsoft in the fourth quarter was also 13.307 billion US dollars, an increase of 8% compared with 12.405 billion US dollars in the same period of last year. Excluding the impact of exchange rate changes, it increased by 12% year-on-year.
Results of all departments in the fourth quarter:
Microsoft’s fourth quarter revenue from products was $18.147 billion, compared with $17.103 billion in the same period last year; revenue from services and other businesses was $19.886 billion, compared with $16.614 billion in the same period last year.
In the fourth quarter of fiscal year 2020, Microsoft’s productivity and business process division’s revenue was $11.752 billion, up from $11.047 billion in the same period last year; operating profit was $3.972 billion, down from $4.344 billion in the same period last year. In the fourth quarter, revenue of Microsoft’s intelligent cloud division was $13.371 billion, up from $11.391 billion in the same period of last year; operating profit was $5.344 billion, up from $4.502 billion in the same period last year. In the fourth quarter, Microsoft’s revenue from more personal computing businesses was $12.977 billion, up from $11.279 billion in the same period last year; operating profit was $4.091 billion, up from $3.559 billion in the same period last year.
Other financial information for the fourth quarter:
Microsoft’s total revenue cost in the fourth quarter was $12.339 billion, compared with $10.412 billion in the same period last year. Among them, the cost of product revenue was $4.370 billion, compared with $3298 billion in the same period last year; the cost of service and other revenue was $7969 billion, compared with $7.114 billion in the same period last year. Microsoft’s fourth quarter gross profit was $25.694 billion, compared with $23.305 billion in the same period last year.
Microsoft spent $5.214 billion on R & D in the fourth quarter, compared with $4.513 billion in the same period last year; sales and marketing spending was $5.417 billion, compared with $4.962 billion in the same period last year; and general and administrative expenditure was $1.656 billion, compared with $1.425 billion in the same period last year.
In the fourth quarter, Microsoft returned $8.9 billion in cash to shareholders through share buybacks and dividends, up 16% from the same period last year.
Fy2020 annual results:
For the entire fiscal year 2020, Microsoft’s revenue was $143.015 billion, up 14% from $125.843 billion in fiscal year 2019. Excluding some one-off items (not in accordance with US GAAP), Microsoft’s revenue in fiscal year 2020 was also $143.015 billion, up 14% from $125.843 billion in fiscal year 2019. Excluding the impact of exchange rate changes, it increased by 15% year-on-year.
Microsoft’s operating profit in fiscal year 2020 was $52.959 billion, up 23% from $42.959 billion in fiscal year 2019. Excluding certain one-off items (not in accordance with the US GAAP), Microsoft’s operating profit in fiscal year 2020 was also $52.959 billion, an increase of 23% compared with $42.959 billion in fiscal year 2019, and 27% higher than that in fiscal year 2019, excluding the impact of exchange rate changes.

Microsoft’s net profit in fiscal year 2020 was $44.281 billion, up 13% from $39.240 billion in fiscal year 2019. Excluding certain one-off items (not in accordance with US GAAP), Microsoft’s net profit in fiscal year 2020 was also $44.281 billion, 20% higher than that of $36.830 billion in fiscal year 2019. Excluding the impact of exchange rate changes, it increased by 24% year-on-year. Microsoft’s diluted earnings per share in fiscal year 2020 was $5.76, up 14% from $5.06 in fiscal year 2019. Excluding certain one-off items (not in accordance with US GAAP), the diluted earnings per share of Microsoft in fiscal year 2020 was also $5.76, up 21% from $4.75 in fiscal year 2019, and 25% year-on-year growth excluding the impact of exchange rate changes.
Performance Outlook:
Microsoft said it would provide performance outlook data in a subsequent earnings call.
Top management comments:
“The past five months have clearly shown that technology intensity is the key to business resilience,” said Satya NADELLA, Microsoft’s CEO. Organizations that build their own digital capabilities will recover faster and become stronger as they emerge from this crisis. We are the only company with an integrated modern technology stack – supported by the cloud and AI, and based on security and compliance – will help each organization transform and re imagine how they can meet customer needs. ”
Stock price reaction:
Microsoft shares rose $3.00, or 1.44%, to $211.75 in regular NASDAQ trading. Microsoft shares fell $5.73, or 2.71%, to $206.02 in after hours trading through 4:57 p.m. EST on Wednesday (4:57 a.m. Beijing time). In the past 52 weeks, Microsoft’s highest price was $216.38 and its lowest price was $130.78. (Tang Feng)