Exhibit 99.1

Microsoft Cloud Strength Drives Fourth Quarter Results

REDMOND, Wash. — July 22, 2020 — Microsoft Corp. today announced the following results for the quarter ended June 30, 2020, as compared to the corresponding period of last fiscal year:

 

   

Revenue was $38.0 billion and increased 13%

   

Operating income was $13.4 billion and increased 8%

   

Net income was $11.2 billion and decreased 15% GAAP (up 5% non-GAAP)

   

Diluted earnings per share was $1.46 and decreased 15% GAAP (up 7% non-GAAP)

“The last five months have made it clear that tech intensity is the key to business resilience. Organizations that build their own digital capability will recover faster and emerge from this crisis stronger,” said Satya Nadella, chief executive officer of Microsoft. “We are the only company with an integrated, modern technology stack — powered by cloud and AI and underpinned by security and compliance — to help every organization transform and reimagine how they meet customer needs.”

“Our commercial cloud surpassed $50 billion in annual revenue for the first time this year. And this quarter our Commercial bookings were better than expected, growing 12% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft. “As we drive growth across the company, we remain committed to investing in long-term strategic opportunities.”

The following table reconciles our financial results reported in accordance with generally accepted accounting principles (GAAP) to non-GAAP financial results. Additional information regarding our non-GAAP definition is provided below. All growth comparisons relate to the corresponding period in the last fiscal year.

 

     

Three Months Ended June 30,

 

 

   ($ in millions, except per share amounts)

 

  

  Revenue  

 

    

  Operating  
  Income  

 

    

  Net Income  

 

    

  Diluted  
  Earnings per  
  Share  

 

 

  2019 As Reported (GAAP)

  

 

$33,717

 

  

 

$12,405

 

  

 

$13,187

 

  

 

$1.71

 

  Net Tax Impact of Transfer of Intangible Properties

  

 

-

 

  

 

-

 

  

 

(2,567)

 

  

 

(0.34)

 

  2019 As Adjusted (non-GAAP)

  

 

$33,717

 

  

 

$12,405

 

  

 

$10,620

 

  

 

$1.37

 

  2020 As Reported (GAAP)

  

 

$38,033

 

  

 

$13,407

 

  

 

$11,202

 

  

 

$1.46

 

  Percentage Change Y/Y (GAAP)

  

 

13%

 

  

 

8%

 

  

 

(15%)

 

  

 

(15%)

 

  Percentage Change Y/Y (non-GAAP)

  

 

13%

 

  

 

8%

 

  

 

5%

 

  

 

7%

 

  Percentage Change Y/Y (non-GAAP) Constant Currency

  

 

15%

 

  

 

12%

 

  

 

8%

 

  

 

9%

 

GAAP results include a $450 million charge for the closure of the Microsoft Store physical locations in the fourth quarter of fiscal year 2020. GAAP results also include a net income tax benefit of $2.6 billion for the fourth quarter of fiscal year 2019, which is excluded from our non-GAAP results and explained in the non-GAAP definition section below.

COVID-19 Impact

In the fourth quarter of fiscal year 2020, similar business trends to the previous quarter continued.

In the Productivity and Business Processes and Intelligent Cloud segments, cloud usage and demand increased as customers continued to work and learn from home. Transactional license purchasing continued to slow, particularly in small and medium businesses, and LinkedIn was negatively impacted by the weak job market and reductions in advertising spend.


The following information was filed by Microsoft Corp (MSFT) on Wednesday, July 22, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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