MSFT Q1 2017 Earnings Report — Microsoft Corporation Revenue & Financial Results | Market Cap Arena

Microsoft CorporationMSFT

Q1 2017 Earnings

Reported October 20, 2016

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q1 2017	Q4 2016	Q1 2016	QoQ Change	YoY Change
Revenue	$21.9B	$20.6B	—	6.4%	—
Op. Income	$6.7B	$3.1B	—	118.0%	—
Gross Margin	64.2%	61.3%	—	2.9pp	—
Net Margin	25.8%	15.1%	—	10.7pp	—
EPS (Diluted)	$0.72	$0.39	—	84.6%	—
Free Cash Flow	$9.4B	$5.8B	—	61.6%	—

Revenue Flow

Item	Amount
REVENUE	$21.9B
Cost of Revenue	$7.8B
GROSS PROFIT	$14.1B
R&D Expenses	$3.1B
Selling & Marketing	$3.2B
General & Administrative	$1.0B
SG&A Expenses	$4.3B
Other Expenses	$0
Operating Expenses	$7.4B
Cost & Expenses	$15.2B
OPERATING INCOME	$6.7B
Interest Income	$0
Interest Expense	$437M
Other Income/Expenses	$112M
INCOME BEFORE TAX	$6.8B
Income Tax Expense	$1.2B
Net Income from Continuing Ops	$5.7B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$5.7B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$5.7B
D&A	$1.8B
EBIT	$7.3B
EBITDA	$9.1B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$21.9B
Cost of Revenue	$7.8B
GROSS PROFIT	$14.1B
R&D Expenses	$3.1B
Selling & Marketing	$3.2B
General & Administrative	$1.0B
SG&A Expenses	$4.3B
Other Expenses	$0
Operating Expenses	$7.4B
Cost & Expenses	$15.2B
OPERATING INCOME	$6.7B
Interest Income	$0
Interest Expense	$437M
Other Income/Expenses	$112M
INCOME BEFORE TAX	$6.8B
Income Tax Expense	$1.2B
Net Income from Continuing Ops	$5.7B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$5.7B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$5.7B
D&A	$1.8B
EBIT	$7.3B
EBITDA	$9.1B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$5.7B
Depreciation & Amortization	$1.8B
Stock-Based Compensation	$703M
Deferred Income Tax	$540M
Other Non-Cash Items	-$311M
Change in Working Capital	$3.1B
OPERATING CASH FLOW	$11.5B
Capital Expenditure	-$2.2B
Acquisitions (Net)	-$24M
Purchases of Investments	-$57.2B
Sales/Maturities of Investments	$41.0B
Other Investing Activities	-$84M
NET CASH FROM INVESTING	-$18.5B
Net Debt Issuance	$21.4B
Common Stock Repurchased	-$4.4B
Common Dividends Paid	-$2.8B
Other Financing Activities	-$112M
NET CASH FROM FINANCING	$14.3B
FREE CASH FLOW	$9.4B
Net Change in Cash	$7.4B

Balance Sheet

Item	Amount
Cash & Equivalents	$13.9B
Short-Term Investments	$123.0B
Net Receivables	$11.1B
Inventory	$3.1B
Other Current Assets	$6.7B
TOTAL CURRENT ASSETS	$157.9B
PP&E (Net)	$19.2B
Goodwill	$17.9B
Intangible Assets	$3.5B
Long-Term Investments	$10.5B
Tax Assets	$0
Other Non-Current Assets	$3.5B
TOTAL NON-CURRENT ASSETS	$54.6B
TOTAL ASSETS	$212.5B
Account Payables	$6.3B
Short-Term Debt	$14.5B
Deferred Revenue	$26.3B
Other Current Liabilities	$10.7B
TOTAL CURRENT LIABILITIES	$58.8B
Long-Term Debt	$60.2B
Deferred Revenue NC	$7.3B
Deferred Tax Liabilities	$1.6B
Other Non-Current Liabilities	$14.3B
TOTAL NON-CURRENT LIABILITIES	$83.3B
TOTAL LIABILITIES	$142.2B
Common Stock	$67.7B
Additional Paid-In Capital	$0
Retained Earnings	$944M
Treasury Stock	$0
Accum. Other Comp. Income	$1.7B
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$70.4B
Minority Interest	$0
TOTAL EQUITY	$70.4B
TOTAL LIABILITIES & EQUITY	$212.5B
Total Debt	$74.7B
Net Debt	$60.8B