Microsoft Corp. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Microsoft Corp. filed its Q2 2024 10-Q report, detailing financial activities and asset/liability information for the period ending December 31, 2023.</b>

AI Summary

MICROSOFT CORP (MSFT) filed a Quarterly Report (10-Q) with the SEC on January 30, 2024. Filing is a 10-Q for Microsoft Corp. for the period ending December 31, 2023. The filing includes data related to various financial instruments and assets, including derivative assets and liabilities. Specific dates mentioned range from July 1, 2023, to December 31, 2023, and also include prior periods for comparison. The company's fiscal year ends on June 30. Key segments and products mentioned include Search and News Advertising, More Personal Computing, Windows, Devices, and Dynamics Products and Cloud Services.

Why It Matters

For investors and stakeholders tracking MICROSOFT CORP, this filing contains several important signals. This 10-Q filing provides a detailed look into Microsoft's financial health and operational segments for the second quarter of fiscal year 2024. The inclusion of specific financial instruments and their fair value levels offers insight into the company's risk management strategies and market exposure.

Risk Assessment

Risk Level: medium — MICROSOFT CORP shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which inherently contains a medium level of risk due to the dynamic nature of financial markets and business operations, as evidenced by the detailed financial instrument data and segment reporting.

Analyst Insight

Review the detailed segment performance and financial instrument disclosures to understand revenue drivers and risk exposures for Q2 2024.

Revenue Breakdown

Key Numbers

• 20231231 — Report Period End Date (Conformed Period of Report)
• 20240130 — Filing Date (Filed As Of Date)
• 2023-07-01 — Period Start Date (Reporting Period Start)
• 2023-12-31 — Period End Date (Reporting Period End)

Key Players & Entities

• MICROSOFT CORP (company) — Filer Name
• 7372 (dollar_amount) — Standard Industrial Classification Code for SERVICES-PREPACKAGED SOFTWARE
• 911144442 (dollar_amount) — IRS Number
• WA (company) — State of Incorporation
• 0630 (dollar_amount) — Fiscal Year End
• 001-37845 (dollar_amount) — SEC File Number
• REDMOND (company) — Business Address City
• 98052-6399 (dollar_amount) — Business Address ZIP

Forward-Looking Statements

• Microsoft's gaming revenue will see a significant increase in future reports due to the Activision Blizzard acquisition. (Microsoft Corp) — high confidence, target: 2024-06-30
• Microsoft will continue its share repurchase program, signaling ongoing confidence in its stock value. (Microsoft Corp) — medium confidence, target: 2024-12-31

FAQ

Risk Factors

• Derivative Assets and Liabilities [medium — financial]: The filing references derivative assets and liabilities, including interest rate contracts and foreign exchange contracts, indicating potential market risks.
• Fair Value Inputs [medium — financial]: The company reports fair value inputs for debt securities categorized as Level 2 and Level 3, suggesting reliance on observable and unobservable market data.
• Share Repurchase Program [low — financial]: The filing mentions the 'Share Repurchase Program Twenty Twenty One' for periods in 2022, indicating capital allocation strategies.

Key Financial Figures

• $0.00000625 — nge on which registered Common stock, $0.00000625 par value per share MSFT Nasdaq 3

Filing Documents

• msft-20231231.htm (10-Q) — 5540KB
• msft-ex15_1.htm (EX-15.1) — 5KB
• msft-ex31_1.htm (EX-31.1) — 11KB
• msft-ex31_2.htm (EX-31.2) — 11KB
• msft-ex32_1.htm (EX-32.1) — 7KB
• msft-ex32_2.htm (EX-32.2) — 7KB
• 0000950170-24-008814.txt (&nbsp;) — 23454KB
• msft-20231231.xsd (EX-101.SCH) — 1518KB
• msft-20231231_htm.xml (XML) — 7079KB

Financial Statements

Financial Statements a) Income Statements for the Three and Six Months Ended December 31, 2023 and 2022 3 b) Comprehensive Income Statements for the Three and Six Months Ended December 31, 2023 and 2022 4 c) Balance Sheets as of December 31, 2023 and June 30, 2023 5 d) Cash Flows Statements for the Three and Six Months Ended December 31, 2023 and 2022 6 e) Stockholders' Equity Statements for the Three and Six Months Ended December 31, 2023 and 2022 7 f)

Notes to Financial Statements

Notes to Financial Statements 8 g) Report of Independent Registered Public Accounting Firm 30 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 48 Item 4.

Controls and Procedures

Controls and Procedures 48 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 49 Item 1A.

Risk Factors

Risk Factors 49 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 63 Item 5. Other Information 64 Item 6. Exhibits 65 SIGNATURE 67 2 PART I Item 1

FINANCI AL INFORMATION

PART I. FINANCI AL INFORMATION

FINANCI AL STATEMENTS

ITEM 1. FINANCI AL STATEMENTS INCOME STA TEMENTS (In millions, except per share amounts) (Unaudited) Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 Revenue: Product $ 18,941 $ 16,517 $ 34,476 $ 32,258 Service and other 43,079 36,230 84,061 70,611 Total revenue 62,020 52,747 118,537 102,869 Cost of revenue: Product 5,964 5,690 9,495 9,992 Service and other 13,659 11,798 26,430 22,948 Total cost of revenue 19,623 17,488 35,925 32,940 Gross margin 42,397 35,259 82,612 69,929 Research and development 7,142 6,844 13,801 13,472 Sales and marketing 6,246 5,679 11,433 10,805 General and administrative 1,977 2,337 3,451 3,735 Operating income 27,032 20,399 53,927 41,917 Other expense, net ( 506 ) ( 60 ) ( 117 ) ( 6 ) Income before income taxes 26,526 20,339 53,810 41,911 Provision for income taxes 4,656 3,914 9,649 7,930 Net income $ 21,870 $ 16,425 $ 44,161 $ 33,981 Earnings per share: Basic $ 2.94 $ 2.20 $ 5.94 $ 4.56 Diluted $ 2.93 $ 2.20 $ 5.92 $ 4.54 Weighted average shares outstanding: Basic 7,432 7,451 7,431 7,454 Diluted 7,468 7,473 7,465 7,479 Refer to accompanying notes. 3 PART I Item 1 COMPREHENSIVE IN COME STATEMENTS (In millions) (Unaudited) Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 Net income $ 21,870 $ 16,425 $ 44,161 $ 33,981 Other comprehensive income (loss), net of tax: Net change related to derivatives ( 3 ) ( 32 ) 18 ( 25 ) Net change related to investments 1,331 348 1,071 ( 1,549 ) Translation adjustments and other 660 570 305 ( 205 ) Other comprehensive income (loss) 1,988 886 1,394 ( 1,779 ) Comprehensive income $ 23,858 $

View Full Filing

View this 10-Q filing on SEC EDGAR