In the second quarter of fiscal year 2021, we settled an additional portion of the IRS audits for tax years 2004 to 2013 and made a payment of $1.7 billion, including tax and interest. We design our devices, from Surface to Xbox, to minimize their impact on the environment. Deloitte & Touche LLP has audited our internal control over financial reporting as of June 30, 2021; their report follows. We also have an ESPP for all eligible employees. The PC has been mission-critical across work, school, and life to sustain productivity in a remote everything world. A Reporting Pricing Level is the established level for Budget/Forecast to Actual revenue comparisons possible. ", Microsoft, Microsoft's revenue from 2012 to 2022 financial years, by segment (in billion U.S. dollars) Statista, https://www.statista.com/statistics/273482/segment-revenue-of-microsoft/ (last visited March 01, 2023), Microsoft's revenue from 2012 to 2022 financial years, by segment (in billion U.S. dollars) [Graph], Microsoft, July 26, 2022. At Microsoft, we believe that the economic growth we help drive must reach every person, community, and country. In the five years since Microsoft acquired LinkedIn, revenue has nearly tripled and growth has accelerated. Gross unrecognized tax benefits related to uncertain tax positions as of June 30, 2021, 2020, and 2019, were $14.6 billion, $13.8 billion, and $13.1 billion, respectively, which were primarily included in long-term income taxes in our consolidated balance sheets. We believe potential can be nurtured and is not pre-determined, and we should always be learning and curious trying new things without fear of failure. We license software to organizations under volume licensing agreements to allow the customer to acquire multiple licenses of products and services instead of having to acquire separate licenses through retail channels. We evaluated the reasonableness of managements estimate of stand-alone selling prices for products and services that are not sold separately. Cloud usage and demand benefited as customers accelerate their digital transformation priorities. The guidance eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition of deferred tax liabilities for outside basis differences related to changes in ownership of equity method investments and foreign subsidiaries. and cloud services revenue. SA is optional for customers that purchase perpetual licenses. Revenue growth was led by its search segment . To address this, we provide a complete chain of software development tools across every cloud and client platform. Enterprise Services, including Premier Support Services and Microsoft Consulting Services. Awards that expire or are canceled without delivery of shares generally become available for issuance under the plans. Reinvent productivity and business processes. LinkedIn, including Talent Solutions, Marketing Solutions, Premium Subscriptions, Sales Solutions, and Learning Solutions. Segment. Access to this and all other statistics on 80,000 topics from, Show sources information This starts with access to broadband. We review debt investments quarterly for credit losses and impairment. We believe our allowances for income tax contingencies are adequate. We settled a portion of the Internal Revenue Service (IRS) audit for tax years 2004 to 2006 in fiscal year 2011. If the cost of an investment exceeds its fair value, we evaluate, among other factors, general market conditions, credit quality of debt instrument issuers, and the extent to which the fair value is less than cost. Our Search business, including Bing and Microsoft Advertising, is designed to deliver relevant online advertising to a global audience. services revenue growth, Revenue from Windows Commercial products and cloud services, comprising volume licensing of the Windows operating system, Windows cloud services, and other Windows commercial offerings, Revenue from Surface devices and accessories, Revenue from Xbox content and services, comprising digital transactions, Xbox Game Pass and other subscriptions, video games, third-party video game royalties, cloud services, and advertising, Search advertising revenue, excluding TAC, growth, Revenue from search advertising excluding traffic acquisition costs (TAC) paid to Bing Ads network publishers. In Q2 FY 2022, productivity and business processes generated $15.9 billion in revenue, comprising 31% of Microsoft's total revenue. In our rapidly changing digital economy, people need a platform where they can acquire new skills, expand their networks, and connect with employers. This pricing methodology applies to our Level 1 investments, such as U.S. government securities, common and preferred stock, and mutual funds. 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. Yet the fashion and leather goods segment (comprising brands like Fendi and Louis Vuitton) is the major one, generating over 39 billion in . Were helping companies make 250,000 skills-based hires this yearensuring those who learn digital skills can convert them into jobs and opportunity. Azures competitive advantage includes enabling a hybrid cloud, allowing deployment of existing datacenters with our public cloud into a single, cohesive infrastructure, and the ability to run at a scale that meets the needs of businesses of all sizes and complexities. Under the TCJA, the transition tax is payable in interest-free installments over eight years, with 8% due in each of the first five years, 15% in year six, 20% in year seven, and 25% in year eight. Microsoft Viva is an employee experience platform that brings together communications, knowledge, learning, resources, and insights powered by Microsoft 365. Through our Democracy Forward Program, were working across sectors to safeguard electoral processes and defend against disinformation. Xbox content and services revenue increased $2.3 billion or 23% driven by growth in third-party titles, Xbox Game Pass subscriptions, and first-party titles. 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. 4 min read. 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 Company engaged Deloitte & Touche LLP, an independent registered public accounting firm, to audit and render an opinion on the consolidated financial statements and internal control over financial reporting in accordance with the standards of the Public Company Accounting Oversight Board (United States). This pricing methodology applies to our Level 2 investments, such as commercial paper, certificates of deposit, U.S. agency securities, foreign government bonds, mortgage- and asset-backed securities, corporate notes and bonds, and municipal securities. Extended disruptions at these suppliers could lead to a similar disruption in our ability to manufacture devices on time to meet consumer demand. The fair values of these investments are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. Building and running cloud-based services in ways that unleash new experiences and opportunities for businesses and individuals. Microsoft's other revenue segment, "Productivity and Business Processes," reported revenue of $16.5 billion, up from $15.04 billion a year ago and higher than the average analyst estimate of . In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using information that may include market conditions and other observable inputs. Our system management solutions compete with server management and server virtualization platform providers, such as BMC, CA Technologies, Hewlett-Packard, IBM, and VMware. Server products and cloud services revenue increased $11.2 billion or 27% driven by Azure. We issue debt to take advantage of favorable pricing and liquidity in the debt markets, reflecting our credit rating and the low interest rate environment. Our ongoing survey data shows employees value the flexibility related to work location, work site, and work hours, and while many indicate they intend to return to a worksite once conditions permit, they also intend to adjust hours or spend some portions of workweeks working remotely. Quarterly smartphone market share worldwide by vendor 2009-2022, Apple iPhone unit sales worldwide 2007-2018, by quarter, Global market share held by smartphone operating systems 2009-2018, by quarter, Virtual reality (VR) - statistics & facts, Research expert covering the consumer electronics industry, Profit from additional features with an Employee Account. Microsoft posted a total revenue of $52.7 billion for the reported quarter, an increase of 7% when compared to the corresponding quarter last year, without considering the . As we have diversity of target audiences and sales motions within the Windows business, we monitor metrics that are reflective of those varying motions. This is why we were the first major tech company to support GDPRthe EUs privacy law that is the standard for privacy legislation around the worldand why we are strong advocates for passage of comprehensive federal privacy legislation in the United States. Search advertising revenue excluding traffic acquisition costs increased 13% driven by higher revenue per search and search volume. Microsoft Teams is enabling rapid digital transformation by giving people a single tool to chat, call, meet, and collaborate. Clayton, Dubilier & Rice, John W. Thompson 3,4 The earnings provide a further lift to Microsoft after it agreed to acquire gaming giant Activision Blizzard in a $68.7 billion, all-cash deal. We work to ensure that technology is inclusive, trusted, and increases sustainability. Search advertising revenue, excluding traffic acquisition costs, increased 13%. The Zacks Consensus Estimate for revenues is pegged at $50.32 billion, implying growth of 16.82 . Date: Tuesday, November 30, 2021 Xbox Cloud Gaming is now available on PCs, as well as phones and tablets, and later this year will come to the console. Examples of estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, and determining the standalone selling price (SSP) of performance obligations, variable consideration, and other obligations such as product returns and refunds; loss contingencies; product warranties; the fair value of and/or potential impairment of goodwill and intangible assets for our reporting units; product life cycles; useful lives of our tangible and intangible assets; allowances for doubtful accounts; the market value of, and demand for, our inventory; stock-based compensation forfeiture rates; when technological feasibility is achieved for our products; the potential outcome of uncertain tax positions that have been recognized in our consolidated financial statements or tax returns; and determining the timing and amount of impairments for investments. A companys internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Detailed breakdowns of gender, racial, and ethnic minority representation in our employee population, with data by job types, levels, and segments of our business. 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 . The purchase price included $768 million of cash and cash equivalents acquired. Devices face competition from various computer, tablet, and hardware manufacturers who offer a unique combination of high-quality industrial design and innovative technologies across various price points. The estimated useful lives of our property and equipment are generally as follows: computer software developed or acquired for internal use, three to seven years; computer equipment, two to four years; buildings and improvements, five to 15 years; leasehold improvements, three to 20 years; and furniture and equipment, one to 10 years. These estimates and assumptions are affected by managements application of accounting policies, as well as uncertainty in the current economic environment due to COVID-19. The service gets you the information you need faster and also gives you the power and convenience of online proxy voting. Adjustments to reconcile net income to net cash from operations: Net recognized gains on investments and derivatives. We continue to invest in new gaming studios and content to expand our IP roadmap and leverage new content creators. 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