微軟3q18財年財務數(shù)據(jù)transcriptfy18q3

1、<h2>　　Microsoft Third Quarter Earnings Conference Call</h2><p>　　Michael Spencer, Satya Nadella, Amy Hood</p><p>　　Thursday, April 26, 2018</p><p>　　(Operator Direction.)</

2、p><p>　　MICHAEL SPENCER: Good afternoon and thank you for joining us today.</p><p>　　On the call with me are Satya Nadella, Chief Executive Officer; Amy Hood, Chief Financial Officer; Frank Brod,

3、Chief Accounting Officer; and Carolyn Frantz, Deputy General Counsel and Corporate Secretary.</p><p>　　On the Microsoft Investor Relations website, you can find our earnings press release and financial summa

4、ry slide deck, which is intended to supplement our prepared remarks during today's call and provides the reconciliation of differences between the GAAP and non-GAAP financial measures.</p><p>　　Unless ot

5、herwise specified we refer to non-GAAP metrics on the call. The non-GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial performance prepared in accordan

6、ce with the GAAP. They're included as additional clarifying items to aid investors in further understanding the company's third quarter performance in addition to the impact that these items and events had on th

7、e financial results.</p><p>　　All growth comparisons we make on the call today relate to the corresponding period of last year unless otherwise noted. We will also provide growth rates in constant currency

8、when available as a framework for assessing how our underlying businesses performed excluding the effect of foreign currency rate fluctuations. Where growth rates are the same in constant currency we will refer to the g

9、rowth rate only.</p><p>　　We will post our prepared remarks to our website immediately following the call until the complete transcript is available. Today's call is being webcast live and recorded. If

10、 you ask a question, it will be included in our live transmission, in the transcript, and in any future use of the recording. You can replay the call and view the transcript on the Microsoft Investor Relations website.&

11、lt;/p><p>　　During this call, we will make forward-looking statements which are predictions, projections or other statements about future events. These statements are based on current expectations and assumpti

12、ons that are subject to risks and uncertainties. Actual results could materially differ because of factors discussed in today's earnings press release, in the comments made during the conference call, and in the ris

13、k-factor section of our Form 10-K, Forms 10-Q, and other reports and filings with the </p><p>　　And with that, I'll turn the call over to Satya.</p><p>　　SATYA NADELLA: Thank you, Mike. An

14、d thanks to everyone on the phone for joining.</p><p>　　It was another strong quarter, the result of picking the right secular trends, delivering differentiated innovation, and focused execution that results

15、 in increased engagement and usage. The intelligent cloud and the intelligent edge era is already upon us. It represents a tremendous opportunity. We took significant steps this quarter to put this at the forefront of

16、 everything we do. We're realigning our entire engineering organization to accelerate innovation and better serve the needs of c</p><p>　　With that as the backdrop, I want to highlight key areas of inno

17、vation and growth across our customer solutions. Creating a modern workplace where people can do their best work requires the right culture and the right technology. Microsoft 365 helps every organization empower their

18、 employees with AI-backed tools that unlock creativity, increase teamwork, and fuel innovation, all the while ensuring compliance and protecting data from new cyber threats.</p><p>　　Microsoft is a clear lea

19、der in cloud security. Advanced AI reasons over hundreds of billions of signals each month to identify anomalies, automate detection, and help customers respond to cyber threats. Just last week we announced new value f

20、or customers, Microsoft Secure Score attack simulator, and Windows Defender ATP automatic detection and remediation capabilities, as well as a new open API for the intelligent security graph.</p><p>　　We als

21、o built compliance capability directly into our cloud services, thousands of organizations are using the recently launched Compliance Manager with new information protection scanner, and built-in classification capabilit

22、y to help prepare for GDPR. Our comprehensive approach and proactive protection are one reason Coca-Cola chose Microsoft Cloud for their digital transformation.</p><p>　　One year in, Teams has rapidly becom

23、e the hub for teamwork. More than 200,000 organizations in 181 markets use Teams, from Maersk to General Motors. Teams is now enabled for a broad spectrum of calling and meeting room devices. We're also building AI

24、-powered services into Teams. We've integrated Microsoft Stream, our enterprise video service, into Teams for transcription and time-coding of recorded meetings. We've added new facial recognition capabilities

25、which will attribute remarks to spec</p><p>　　All this innovation is driving customer usage. Windows 10 continues to gain traction in the enterprise with Windows 10 commercial monthly active devices up 79 p

26、ercent year over year. Office 365 commercial now has more than 135 million monthly active users, and Office 365 consumer subscriber increased to 30.6 million.</p><p>　　Now I'll turn to LinkedIn and busi

27、ness applications. From the start, we recognized the opportunity for LinkedIn and Microsoft to combine forces to create economic opportunity for every member of the global workforce and enable professionals to be more p

28、roductive and successful. A little over one year in, we feel great about the value we're delivering for members, customers and shareholders. Our integration model has enabled LinkedIn to accelerate growth while ret

29、aining its member-first ethos.</p><p>　　Results are ahead of expectations across all lines of business with revenue growth of 37 percent year over year. We saw record levels of engagement again this quarter

30、 with sessions growth of more than 30 percent year over year driven by innovation across the platform. This increased engagement is driving strong demand for sponsored content and marketing solutions and record levels o

31、f job postings and job visitors again this quarter in Talent Solutions.</p><p>　　Shifting to business applications, Dynamics 365 is gaining traction as our third commercial cloud growth engine up 65 percent

32、this quarter. We unleashed a wave of AI innovation in Dynamics with hundreds of new capabilities to transform sales and automate marketing with Office 365 embedded inside Dynamics for productivity. Relationship analyti

33、cs for sales and marketing leveraged the Microsoft Graph and data from social networks to improve customer relationships and predictive lead scoring helps</p><p>　　We're investing in our business applica

34、tions platform capabilities across Power BI, Power Apps, Flow, and a common data model. Now customers can extend Dynamics 365 and Office 365 and quickly build applications using data from across the organization, as wel

35、l as third party data with minimal custom code. The new power platform enables customers like Inter Cars, a leading European auto parts company, to go from paper to digitized workflows within days versus months. With t

36、he rapid growth of Po</p><p>　　Now I'll turn to infrastructure and AI platforms. Our architectural advantage of a consistent stack from the cloud to the edge is resonating with customers, with Azure rev

37、enue growth of 93 percent this quarter. Recent CIO surveys affirm our leadership position in hybrid, developer productivity, trusted security and compliance and new workloads such as IoT and AI at the edge.</p>&

38、lt;p>　　We have made the right investment decisions and they're having an impact increasing our overall share in an expanding market. Our recent data center expansion, including the United States Arab Emirates and

39、 Switzerland brings our total number of regions to 50, more than any other cloud provider. And the additional availability zones provide the most comprehensive resiliency in the industry.</p><p>　　We also c

40、ontinue to see strong customer demand for Azure stack across industries and it's unlocking new workload scenarios across hybrid and edge. Industrial IoT is transforming the rules of manufacturing, fueling cloud and

41、edge innovation, accelerating the evolution of digital factories and enhancing supply chain performance.</p><p>　　Azure IoT and Azure stack enable customers and partners to build industrial IoT solutions tha

42、t run at the edge, so operators on the factory floor can manage devices and analyze data in real time. And HoloLens is quickly becoming an indispensable tool as we take digital twin technology to the next level. We'

43、;re also innovating in silicon to help customers realize the promise of a connected world of devices and things.</p><p>　　Our just announced Azure Sphere is the first of its kind highly secure edge solution

44、that combines chip design and IoT operating system and a cloud service to secure more than nine billion microcontroller-powered devices entering the markets each year.</p><p>　　And we are already seeing rapi

45、d customer adoption of IoT scenarios. Toyota material handling in Europe is using Azure, as well as HoloLens, to create a factory of the future. Using AI drones learn complex processes to automate the flow of a factory

46、, increasing supply chain and warehouse efficiency. And Microsoft and ABB are partnering to push the boundaries of smart manufacturing for industry automation.</p><p>　　We're investing to make Azure the

47、 best cloud for enterprise data estates. In less than a year Azure Cosmos DB, the first globally distributed, multi-modal, and multi-model database exceeded $100 million in annualized revenue. Azure Database for MySQL

48、and Postgre SQL makes it even easier to bring open source powered applications to Azure, expanding our opportunity in this space.</p><p>　　We have seen rapid adoption of Azure Databricks for data preparation

49、, advanced analytics, and machine learning scenarios. We continue to innovate, to democratize AI. More than 1 million developers have already used cognitive services to quickly and easily create AI applications and we

50、have more services than any other cloud provider.</p><p>　　Our Azure Bot Service has nearly 300,000 developers, up more than 150 percent year-over-year. Microsoft Translator brings AI-powered translation to

51、 developers where their data is, whether it's in the cloud, or on the edge. And just last month we reached human parity in language translation, a new milestone, in addition to our previous human parity achievements

52、 in object recognition, speech recognition and machine reading comprehension. We're also gaining traction in machine learning tools ado</p><p>　　Finally, we're innovating with new GPU and FPGA-based

53、 offerings to lead in AI infrastructure for both training and inference. I'm excited to share more about our cloud and AI innovation at our developer conference next month at Build.</p><p>　　Now to gami

54、ng, we continue to pursue our expansive opportunity in gaming from the way games are created and distributed to how they are played and viewed. We had one of the best quarters in gaming, with strong revenue performance

55、and record levels of engagement.</p><p>　　Software and services revenue grew 24 percent, as we continued to attract, retain, and deepen user relationships across Xbox Live, Game Pass and Mixer. Xbox Live mo

56、nthly active users grew to 59 million up 13 percent. Our new first party game, Sea of Thieves, drove game play across Windows 10 and Xbox One, in addition to nearly 10 million hours of viewing on services like Mixer in

57、its very first week.</p><p>　　Our results speak to the strength of our platform and services for both first party and third-party experiences. And we'll continue to invest in our platform, enhancing our

58、 cloud services with AI capabilities for developers to quickly build and monetize games across PC, console and mobile.</p><p>　　In closing, intelligent cloud and intelligent edge represents a tremendous oppo

59、rtunity for us customers. It comes with a responsibility to ensure trust in technology. We are working to instill this trust in three key areas. The first is privacy. We recognize that privacy is a fundamental human

60、right and we have consistently acted accordingly.</p><p>　　Our success is grounded in our customer's success. We have been working towards the May 25th GDPR implementation date since 2016, with hundreds

61、 of engineers across the company working on end-to-end privacy architecture and we'll ensure that all our products and services are GDPR compliant. For customers we will provide robust tools backed by contractual co

62、mmitments to help them comply with GDPR. In fact, for most customers it will be more effective and less costly to host their data in Micros</p><p>　　Second, cybersecurity, in response to escalating cyber-at

63、tacks around the world we are leading a bold initiative to defend and protect our customers. We recently led a coalition of 34 global technology and security companies in signing the Cyber Security Tech Accord. The acc

64、ord is an important first step by the industry to help create a safer and more security online environment for everyone.</p><p>　　Finally, we recently established the AI Ethics in Engineering and Research Co

65、mmittee at Microsoft to ensure we always advance AI in an ethical and responsible way, to benefit our customers and the broader society. This includes new investments in technology to detect and address bias in AI syste

66、ms. Microsoft stands for trust and this will continue to be a differentiating focus for us moving forward.</p><p>　　With that I'll hand it over to Amy to cover our financial results in more detail and s

67、hare our outlook. And I look forward to rejoining for your questions.</p><p>　　AMY HOOD: Thank you, Satya, and good afternoon, everyone.</p><p>　　Our third quarter revenue was $26.8 billion, u

68、p 16 percent and 13 percent in constant currency, with better than expected performance across all segments. Gross margin increased 16 and 13 percent in constant currency, operating income increased 23 percent and 20 in

69、 constant currency. Earnings per share was 95 cents, increasing 36 percent and 31 percent in constant currency.</p><p>　　From a geographic perspective, we saw broad-based strength across markets of all size

70、s benefiting from the positive global corporate IT spend environment. Growth in cloud services increased our commercial annuity mix up 2 points year over year to 89 percent. Along with healthy renewals, our sales teams

71、 and partner drove a higher volume of new business, leading to commercial bookings growth of 26 percent and 18 percent in constant currency.</p><p>　　Commercial unearned came in slightly above our expectatio

72、ns due to FX growing 20 percent and 17 percent in constant currency. Commercial cloud revenue was $6 billion, increasing 58 percent and 55 percent in constant currency, highlighted by healthy growth in the U.S., Western

73、 Europe, and the UK. We again improved commercial cloud gross margin now at 57 percent, up 6 points, with improvement in each cloud service, most notably Azure.</p><p>　　We outperformed our expectation on c

74、ompany gross margin, finishing the quarter at 65 percent. We are up slightly year over year with improvement in our productivity and business processes segment from Office 365 commercial and LinkedIn. Offset by a decli

75、ne in our Intelligent Cloud segment, driven by a greater mix of Azure revenue.</p><p>　　FX positively impacted revenue growth by 1 point more than expected, 3 points at the company in Productivity and Busine

76、ss Processes level, and 2 points on both Intelligent Cloud and more personal computing. FX added 2 points of growth to COGS and operating expenses, 1 point more than expected.</p><p>　　Operating expenses gr

77、ew 10 percent and 8 percent in constant currency as we continue to invest in commercial sales capacity, cloud engineering and LinkedIn. Even with this accelerated pace of spend, we increased operating margin 2 points ye

78、ar over year, a direct result of our focused investments to drive top line growth.</p><p>　　Now to the segment results. Revenue from Productivity and Business Processes was approximately $9 billion, increas

79、ing 17 percent and 14 percent in constant currency, with better than expected results from Office 365 commercial and LinkedIn.</p><p>　　Office commercial revenue grew double digits again this quarter up 14 p

80、ercent and 12 percent in constant currency including a couple points from a greater mix of contracts with higher in period recognition.</p><p>　　Office 365 commercial revenue grew 42 percent and 40 percent i

81、n constant currency with continued install base growth and RPU expansion driven by customer migration to our premium workloads in E3 and E5. Office 365 commercial seats grew 28 percent in line with the expected trend gi

82、ven the increasing size of the install base.</p><p>　　Office consumer revenue increased 12 percent and 9 percent in constant currency driven by recurring subscription revenue and a growing overall install ba

83、se.</p><p>　　Our Dynamics business accelerated this quarter growing 17 percent and 14 percent in constant currency driven by Dynamics 365 growth of 65 percent, 62 percent in constant currency.</p><

84、;p>　　LinkedIn revenue grew 37 percent and 33 percent in constant currency with more than $1.3 billion in revenue.</p><p>　　We continue to see outperformance across all segments with record levels of engag

85、ement. Segment gross margin dollars increased 18 percent and 15 percent in constant currency. Gross margin percentage increased with margin improvements in Office 365 commercial and LinkedIn offsetting the increased mi

86、x of cloud revenue.</p><p>　　Operating expenses grew 14 percent and 12 percent in constant currency as we continue to strategically invest in LinkedIn, commercial sales capacity and cloud engineering. Opera

87、ting income increased 23 percent and 19 percent in constant currency.</p><p>　　The Intelligent Cloud segment delivered $7.9 billion of revenue, increasing 17 percent and 15 in constant currency, exceeding ex

88、pectations due to our on-premises server business.</p><p>　　Server products and cloud services revenue grew 20 percent and 17 percent in constant currency to $6.3 billion driven by continued strong Azure rev

89、enue growth of 93 percent, 89 percent in constant currency on a significant revenue base.</p><p>　　Our on-premises server business grew 3 percent and 1 percent in constant currency driven by customer demand

90、for hybrid solution as well as increasing virtualization needs resulting in the uptake of premium versions. Enterprise services revenue increased 8 percent and 5 percent in constant currency with growth in premium suppo

91、rt services and Microsoft Consulting Services more than offsetting the continued decline in custom support agreements for Windows Server 2003.</p><p>　　Segment gross margin dollars grew 16 percent and 14 per

92、cent in constant currency, and gross margin percentage declined with the growing mix of Azure, IaaS and PaaS revenue mostly offset by another quarter of material improvement in Azure gross margin.</p><p>　　O

93、perating expenses increased 9 percent and 7 percent in constant currency driven by our continued investment in sales capacity and cloud engineering. Operating income increased 24 percent, up 21 percent in constant curre

94、ncy.</p><p>　　Now to the results of More Personal Computing. Revenue from this segment was $9.9 billion, up 13 percent and 11 percent in constant currency with significantly better than expected results in

95、gaming, Windows commercial, and Surface. Windows OEM revenue increased 4 percent this quarter. OEM Pro revenue grew 11 percent in line with a strong commercial PC market. We continue to see healthy enterprise demand f

96、or Windows 10 benefiting our OEM partners. OEM non-Pro revenue declined this quarter b</p><p>　　Windows commercial products and cloud services increased 21 percent and 17 in constant currency from strong do

97、uble-digit billings as well as a higher mix of in-quarter recognition from multi-year agreements. The fundamentals of this business remained health with install base growth and adoption of our security solutions.</p&