Microsoft 2Q24 Earnings, Ranking Big Tech’s 2Q24 Performance
For today’s update, we will examine Microsoft’s CY2Q24 earnings. This will wrap up our Big Tech 2Q24 earnings reviews. We will then recap Big Tech earnings season by ranking the companies from best to worst reports.
While there are 2Q24 earnings from a few additional companies worth checking out, we will do that after going over several Apple news items.
Just a few hours ago, Apple announced that CFO Luca Maestri will be stepping down as CFO on January 1st, 2025. He will be remaining at Apple to lead Apple’s IT, information security, and real estate portfolios. Kevan Parekh, who has been at Apple for 11 years and is currently VP - Financial Planning and Analysis, will become Apple's new CFO. There is more to say about this in the next update.
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Alphabet FY3Q23 Earnings, Microsoft FY1Q24 Earnings
Hello everyone. We conclude this week’s updates with Alphabet’s and Microsoft’s earnings.
Next week is shaping up to be a busy one with an Apple event on Monday evening followed by earnings a few days later. The current plan is to prepare for Apple’s earnings on Monday with the discussion possibly being continued on Wednesday. Let’s jump into today’s update.
Alphabet FY3Q23 Earnings
Alphabet’s earnings were fine with revenue up 11%. While that growth rate is up from the 6% reported last year, the difference is due to FX no longer being a headwind. Gross margins were up 300 basis points year over year. Operating income was up 25%. Free cash flow was $23B (which benefited from tax payment deferrals).
Diving deeper into the results, Google Search led the way with $4.5B revenue growth contribution (59% of total revenue growth). Revenue for Google – other, which includes everything from YouTube Premium and YouTube TV subscription revenue to Pixel, was up $1.4B (18% of the total), roughly the same as Google Cloud. YouTube proper (advertising) was up $0.9B.
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