Microsoft's third-quarter net profit of 4.8 billion US dollars increased by 28%

Electronic enthusiasts eight o'clock: On April 28, Microsoft today released its third-quarter earnings report for the fiscal year ending March 31. The financial report showed that Microsoft's third-quarter revenue was $22.1 billion, an increase of 8% from $20.5 billion in the same period last year; net profit measured in accordance with US GAAP was $4.8 billion, compared to $3.756 billion in the same period last year. Increased by 28%.

Performance summary

Microsoft's third-quarter revenue measured in accordance with US GAAP was $22.1 billion, up 8% year-on-year; revenues not measured in accordance with US GAAP were $23.557 billion, up 6% from $22.156 billion in the same period last year. .

Microsoft’s third-quarter operating profit under US GAAP was $5.594 billion, up 6% from $5.283 billion in the same period last year; operating profit not measured in accordance with US GAAP was $7.061 billion, compared to the same period last year. $6.908 billion increased by 2%.

Microsoft’s third-quarter net profit under US GAAP was $4.8 billion, an increase of 28% from $3.756 billion in the same period last year; net income not measured in accordance with US GAAP was $5.715 billion, compared to the same period last year. The US$5.038 billion increased by 13%.

Microsoft's third-quarter diluted earnings per share measured in accordance with US GAAP was $0.61, and diluted earnings per share not measured in accordance with US GAAP were $0.73.

Compare with analyst expectations

The financial report showed that Microsoft's third-quarter profit exceeded the expectations of Wall Street analysts, but the revenue did not meet analysts' expectations. Due to the weak revenue, Microsoft's share price also suffered a decline after the close.

Microsoft’s third-quarter net income, which was not measured in accordance with US GAAP, was $23.557 billion, less than the $21.62 billion expected by Thomson Reuters analysts; and the diluted earnings per share not measured in accordance with US GAAP was $0.73. Analysts surveyed by Thomson Reuters reported an average of $0.70.

Microsoft's third-quarter smart cloud revenue was $6.76 billion, higher than the average estimate of $6.6 billion for analysts surveyed by StreetAccount; more personal computing revenue was $8.84 billion, less than the estimated 9.22 billion analysts surveyed by StreetAccount Dollar.

Executive review

Satya Nadella, CEO of Microsoft, said, "Our third-quarter results reflect customers' trust in Microsoft's cloud business. From large global multinationals to small and medium-sized companies to non-profit companies And organizations, etc., are using Microsoft's cloud platform to support their digital conversion business."

Amy Hood, Microsoft's executive vice president and chief financial officer, said, "Strong execution and strong user demand for cloud-based services have driven our business cloud business to $15.2 billion in annual revenue. ."

financial analysis

Microsoft’s third-quarter net revenues measured in accordance with US GAAP were $22.1 billion, an increase of 8% from $20.531 billion in the same period last year; revenues not measured in accordance with US GAAP were $23.557 billion, compared to last year. The same period of 22.156 billion US dollars increased by 6%.

Microsoft's third-quarter product revenue was $13.391 billion, compared to $14.321 billion in the same period last year; services and other revenues were $8.699 billion, compared to $6.210 billion in the same period last year.

Microsoft's third-quarter total revenue was $8.06 billion, compared to $7.722 billion in the same period last year. The cost of the product was $3,075 million, down from $3.801 billion in the same period last year; the cost of services and other services was $4.985 billion, up from $3.921 billion in the same period last year.

Microsoft's third-quarter R&D spending was $3.355 billion, compared to $2.98 billion in the same period last year; sales and marketing expenses were $3.879 billion, compared to $3.46 billion in the same period last year; general and administrative expenses were $1.202 billion, compared to $1.14 billion in the same period last year. .

Microsoft's third-quarter operating profit was $5.594 billion, up from $5.283 billion in the same period last year, an increase of 6% year-on-year; not in accordance with US GAAP, Microsoft's direct fiscal operating profit was $7.061 billion, compared to the same period last year. 69.08 billion US dollars.

Microsoft’s third-quarter net profit under US GAAP was $4.8 billion, up 28% from $3.756 billion in the same period last year. Not in accordance with US GAAP, Microsoft's third-quarter net profit was $5.715 billion, an increase of 13% from $5.038 billion in the same period last year.

Microsoft's third-quarter diluted earnings per share measured in accordance with US GAAP was $0.61, up from $0.47 in the same period last year. Not in accordance with US GAAP, Microsoft's third-quarter diluted earnings per share were $0.73, up from $0.63 in the same period last year.

In the third quarter, Microsoft returned $4.6 billion in cash to shareholders in the form of dividends and share repurchases.

According to the division of business, Microsoft's production and business process division's third-quarter revenue was $8 billion, up 22% from the same period last year and 23% year-on-year at constant exchange rates. Among them, thanks to the 45% increase in revenue from Office 365, the revenue of Office commercial products and cloud services increased by 7% year-on-year (8% at constant exchange rate); Office consumer products and cloud service revenues year-on-year With a 15% increase (up 14% at constant exchange rates), the total number of Office 365 subscribers has reached 26.2 million. Microsoft's third-quarter Dynamics product and cloud services revenue increased 10% year-on-year (11% at constant exchange rates), which was mainly due to a 81% increase in Dynamics 365 revenue (an increase of 82 at constant exchange rates) %).

LinkedIn contributed $975 million in revenue.

Microsoft Smart Cloud's third-quarter revenue was $6.8 billion, up 11% from the same period last year and 12% year-on-year at constant exchange rates. Among them, server products and cloud services revenue increased by 15% year-on-year (up 16% at constant exchange rates), mainly due to Azure revenue growth of 93% year-on-year (94% increase at constant exchange rates); corporate service revenue It fell by 1% year-on-year and remained unchanged at constant exchange rates.

Microsoft's more personal computing business revenue for the third quarter was $8.8 billion, down 7% from the same period last year and also down 7% year-on-year at constant exchange rates. Among them, Windows OEM revenue increased by 5% year-on-year (according to fixed exchange rate, also increased by 5%); Windows commercial products and cloud services revenue increased by 6% (according to fixed exchange rate also increased by 6%); Surface revenue declined year-on-year 26%, according to the fixed exchange rate, fell 25% year-on-year; search advertising revenue excluding traffic M&A costs increased by 8% year-on-year (by 9% at constant exchange rates); game business revenue increased by 4%% (according to Fixed exchange rate calculations increased by 6% year-on-year).

Balance sheet

As of March 31, 2017, Microsoft held cash and cash equivalents totaling $6.713 billion, as of June 30, 2016, $6.51 billion; holding short-term investments totaling $119.305 billion, as of 2016 On the 30th of the month, it was 106.73 billion US dollars.

In Thursday's Nasdaq stock market regular trading, Microsoft shares rose 0.44 US dollars to close at 68.27 US dollars, or 0.65%; in subsequent after-hours trading (as of press time), Microsoft shares fell 1.06 US dollars It reached US$67.18, a decrease of 1.54%. In the past 52 weeks, Microsoft's lowest share price was $48.04, and the highest share price was $68.38.

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