- Microsoft achieved a net income of $88 billion during its 2024 financial year
- Following the positive results, the company has set its sights on “leading the AI era”
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In its 2024 financial year, Microsoft reported a revenue of $245.1 billion and net profits of $88.1 billion, marking a 16% and 22% increase respectively.
The tech giant’s fiscal year closed on June 30th, 2024 with a strong final quarter contributing $64.7 billion in revenue and $22 billion in net income.
While Office 365 products, Xbox products and services, cloud services, and LinkedIn revenues experienced growth, Microsoft did not mention mobile revenues in its report.
Acquisition Milestones
After a lengthy approval process, Microsoft’s $69 billion acquisition of Activision Blizzard was finalized in October, uniting two video game industry giants. The acquisition boosted Xbox content and services revenue by 61% in Microsoft’s Q4, with 58% of the impact attributed to the acquisition.
Xbox revenue increased by 3% independently of the deal, shedding light on the upcoming Game Pass price adjustment.
In Q4, Office products and cloud services saw significant revenue growth, up by 12% on the commercial side and 3% with consumers, reaching a subscriber base of 82.5 million.
Intelligent Cloud revenue totaled $28.5 billion in Q4 with a 19% year-on-year increase. Microsoft Cloud reached $36.8 billion, growing by 21%.
Total revenue for all Microsoft divisions rose from $56.2 billion in Q4 2023 to $64.7 billion in Q4 2024, a 15% increase year-on-year. Net income increased from $20.1 billion to $22 billion, a 10% rise.
“We concluded our fiscal year with a strong quarter, marked by record bookings and Microsoft Cloud quarterly revenue of $36.8 billion, up 21% (22% in constant currency) year-over-year,” said Microsoft executive VP and CFO Amy Hood.
Trends to Watch
The absence of a mobile breakdown in Microsoft’s report reflects its limited presence in the mobile sector. Despite being late to the mobile market and facing fierce competition from Apple and Android, the Activision Blizzard deal was a strategic move to regain ground. However, Microsoft’s investment in mobile has yet to yield substantial results.
While Office 365 subscriptions allow access to Microsoft suite apps, the company’s focus remains predominantly on PC. There is still no Xbox store on mobile, but that may change in the future.
“Our strong performance this fiscal year underscores both our innovation and the trust customers have in Microsoft. As a platform company, we are committed to meeting the critical needs of our customers across our scalable platforms today, while also leading the AI era,” added Microsoft chairman and CEO Satya Nadella.
At King’s headquarters, maker of Candy Crush, we discussed the Microsoft acquisition and the AI “opportunities” with head of AI and machine learning Luka Crnkovic-Friis.
