Thank you. This quarter, revenue was $37.2 billion, up 12% year over year. We launched our most significant redesign with a streamlined search and messaging experience as well as new ways for connecting and sharing with stories. In our consumer business, continued demand for PCs and productivity tools benefited Windows OEM non-Pro, Office Consumer and Surface, and improved advertising market benefited Search and LinkedIn. In sports, the NBA and NFL are reimagining the game day experience for fans. They can be impacted by an expiry base. So we have all three of these trends leading to more intense usage of infrastructure data and the application PaaS services. And our partnership with OpenAI brings leading-edge large-scale AI models such as GPT-3 to Azure. Thank you. In Surface, revenue grew 37% and 36% in constant currency, driven by year-over-year differences in product launch timing and channel purchasing as well as overall PC market demand. So that's what we are seeing, which is increasing adoption and use. We feel very good right now on how the supply is working to support the demand. And so these types of partnerships, it's really about making sure we make them successful far more than which quarter that they arrive in. Now I'll highlight examples of our momentum and impact, starting with Azure. Based on current rates, we expect FX to increase total company revenue and operating expense growth by approximately one point and have no impact on COGS growth. And finally, we expect our Q2 tax rate to be approximately 16%. Just one thing I'd add is, to Amy's earlier comment about our customer success motion, when we look at the app portfolio for any customer, we look to see, first of all, which apps do they want to just retire, which apps do they want to modernize and move to the cloud or new cloud starts. In More Personal Computing, we expect revenue between $13.2 billion and $13.6 billion. Wanted to talk a little bit about Intelligent Cloud and the trends that you're seeing there. With Power Platform in Teams, you can build custom productivity apps using Lists as a data source. You saw — we talked about the usage growth, but we're also seeing significant growth of usage across all these modalities inside of Teams. Enterprise services revenue grew 6% and 5% in constant currency, again driven by premier support services. We are innovating across the full modern tech stack to help customers in every industry improve time to value, increase agility and reduce costs. Employee health and well-being is a top concern for every CEO. December 8, 2020 10:55 AM - PT. As software developers become critical to value creation in every industry, their productivity is key to business performance. New code scanning capabilities in GitHub help developers find security vulnerabilities before they reach production. In education, nearly 270,000 institutions are using Teams to power remote learning and improve learning outcomes, including the University of Nottingham in the U.K., Morehouse College, the University of South Florida and some of the largest school districts in the United States like Miami-Dade County Public Schools. The one thing also that I sometimes think gets missed when we talk about Office 365 is one of the other key motions that's important around this group and business is the ability for us to continue to add the Microsoft 365 components, whether that's EMS or Windows security value. So maybe I can start, Amy, and then you can add to it. I'd be curious to hear kind of the plans for GPT-3 license and how you plan to democratize that across the platform. Just yesterday, we announced a partnership with and Adobe to bring to market a new class of industry-specific CRM solutions powered by Dynamics 365. So even if you look at the holiday lineup of devices, it's great to see that, large screens, small screens, mobile, different chip architectures that make it pretty attractive to have a Windows device with you always. With that, Mike, let's go to Q&A. For more information, financial analysts and investors only: Investor Relations, Microsoft, (425) 706-4400, Microsoft Media Relations, WE Communications, (425) 638-7777, [email protected]. Next, the Intelligent Cloud segment. December 9, 2020 9:30 AM - PT. And Morgan Stanley, PricewaterhouseCoopers and Prudential Financial all chose Microsoft 365 E5 this quarter for differentiated security, compliance, voice and analytics. And organizations continue to tap into the combination of LinkedIn Sales Navigator and Dynamics 365 to ensure salespeople have the context they need to sell remotely. We think it will double in the next 10 years. Note to editors: For more information, news and perspectives from Microsoft, please visit the Microsoft News Center at Consistent execution by our sales teams and partners drove a strong start to the fiscal year. Stock Advisor launched in February of 2002. Just last week, Verizon chose Azure to offer private 5G mobile edge computing to their business customers. H&R Block, for example, used our tools to implement zero trust principles in just two weeks, enabling thousands of tax professionals to securely work from home. And then it hurts more both in this macro environment but more so just because of some tough comparables. It's very important. So if you look at where our growth is coming from for the all up number in Intelligent Cloud, it's coming from the infrastructure layer, the flexibility that we have around hybrid deployment, things like Azure Arc, very differentiated. With Arc, customers can extend Azure management and deploy Azure data services on-premise, at the edge or in multi-cloud environments. Teams is the only solution with meetings, calls, chat, content collaboration as well as business process workflow in a secure, integrated user experience. Please proceed with your question. For Intelligent Cloud, we expect revenue between $13.55 billion and $13.8 billion. But the other interesting thing is what I would call the domain experts who are using Power Apps, being able to tap into AI and these COGS services to build these workflow assisted with AI. [Operator instructions] As a reminder, this conference is being recorded. More companies are turning to our mixed reality solutions to keep employees connected with experts even when they're apart. On a strong prior year comparable, Office Commercial revenue grew 9% with continued impact from the transactional weakness noted earlier. And should we interpret your comments that obviously growth remains really strong and we're investing for growth but there's an eye on profitability as well? Search revenue ex TAC declined 10% and 11% in constant currency. So while the funnel and the conversion is absolutely how we think about seeing strong bookings and a strong especially longer than 12-month RPO balance, we certainly also sort of work that meticulously at the customer level to get projects to success. So then what you're left with is a small component of the business, which is that non-annuity/what we call transactional business, which is onetime purchases all recognized in-quarter. A live webcast of the earnings conference call will be made available at 2:30 p.m. Pacific Time. The next question comes from Phil Winslow with Wells Fargo. As always, large long-term Azure contracts are more unpredictable in their timing, and increasing mix of these long-term agreements drives more quarterly volatility in bookings. I just wanted to focus in on the Office 365 Commercial, and Amy, thank you for that update that you announced, 70% penetrated. There's analytics value. NEW YORK, NY / ACCESSWIRE / July 22, 2020 / Microsoft Corp. (NASDAQ:MSFT) will … And if anything, this pandemic perhaps has accelerated that doubling. Power Platform now has more than 10 million monthly active users at more than 500,000 organizations from IKEA to Toyota. And Heather, congratulations. Unless otherwise specified, we will refer to non-GAAP metrics on the call. Good afternoon. We also expect negative gross margin impact from console sales this quarter as we invest against the growing lifetime value of the platform. We saw record levels of engagement again this quarter. OEM non-Pro revenue grew 31%, benefiting from demand for larger screens for productivity. Office Consumer revenue grew 13% with better-than-expected sales of Office 2019 and accelerating growth in Microsoft 365 subscriptions, up 27% year over year to 45.3 million. Are you going to be able to meet all the demands? From Electrolux, GE Aviation and Rockwell Automation in manufacturing to Marks & Spencers and Myntra in retail, businesses are choosing Synapse to accelerate time to insight across their organization. And in Dynamics, continued Dynamics 365 momentum will drive revenue growth, though at a slightly lower rate than last quarter in line with the historic seasonality in that business. I mean, overall, what we have learned over, whatever, the last nine months or so, is the best way for any business to ensure both resilience as well as pivot and transform and reimagine how to work with some of the constraints is digital tech. LinkedIn revenue increased 16%, significantly ahead of expectations, primarily driven by a stronger advertising market that benefited our marketing solutions business. Let me start, and Keith, thanks for the question, and Amy, you can add to it. A live webcast of the earnings conference call will be made available at 2:30 p.m. Pacific Time. And then as a follow-up to that, one of the things you mentioned too is obviously the continued migration to E5. Thank you very much for taking the question. With GitHub, more than 70% of the Fortune 50 build software together. And operating margins expanded four points year over year to 43%, including roughly two points of favorable impact from the change in accounting estimate. It's a great observation because there are two sort of things that we are seeing. Morgan Stanley Technology, Media & Telecom Conference; Dave O'Hara, CVP, Cloud and Enterprise, Office, Dynamics, Artificial Intelligence and Research, CFO. Let me start, and Amy, you can add to it. Finally, we are delighted by early reviews and excitement in the Xbox Series S and Xbox Series X, which will be the most affordable and the most powerful consoles available. Now to Microsoft 365. At the PaaS layer, we are innovating to help developers build modern applications. Moving to our overall results. We will post our prepared remarks to our website immediately following the call until the complete transcript is available. And so in our commercial segments, where we're seeing consistent annuity execution, we're seeing increasing usage, we're seeing good deployment. The non-GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. We are focused on innovating and differentiating to meet these needs and growing opportunity. And we again saw strong demand for our differentiated, high-value hybrid and cloud offerings, resulting in increased commitment to our platform and higher usage. February 12, 2019 11:00 AM - … If you take a step back, the comments are really about the consistency and the opportunity in front of us. Now to our segment results. I guess the last question for me is really on AI. And so of course, we're always thoughtful about how we invest. On the Microsoft Investor Relations website, you can find our earnings press release and financial summary slide deck, which is intended to supplement our prepared remarks during today's call … Now to FX. On the strong prior year comparable and relatively small expiration base, commercial bookings growth was ahead of expectations, increasing 23% and 18% in constant currency, driven by our core annuity sales motions and an increase in the number of large long-term Azure contracts. And in gaming, revenue increased 22% and 21% in constant currency, driven by continued strong engagement and monetization across the platform, though at a slightly lower rate than last quarter. Its mission is to empower every person and every organization on the planet to achieve more. This represents an unprecedented expansion of our addressable market in every layer of the tech stack. Mark Moerdler -- Bernstein Research -- Analyst. Congrats on another great quarter. If you ask a question, it will be included in our live transmission, in the transcript and in any future use of the recording. They tend to be partnerships that we're really working through. Within the segments, FX should increase Productivity and Business Processes and Intelligent Cloud revenue growth by approximately one point and have no impact on More Personal Computing revenue growth. It brings together healthcare-specific capabilities from across Dynamics 365 as well as Microsoft 365, Power Platform and Azure to help providers like Cleveland Clinic and St. Luke's Health Network improve patient outcomes. And our on-premises server business decreased 1%, with impact from continued transactional weakness and a strong prior year comparable that benefited from the end of support for Windows Server and SQL Server 2008. Unless otherwise specified, we will refer to non-GAAP metrics on the call. On the Microsoft Investor Relations website, you can find our earnings press release and financial summary slide deck, which is intended to supplement our prepared remarks during today's call … I don't sort of look at each quarter what's happening on server plus cloud. Read or listen to the conference call. They are included as additional clarifying items to aid investors in further understanding the company's quarterly performance in addition to the impact these items and events have on the financial results. Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. And so one of the key components of that is we have, as you said, continued to see installed base growth. Office 365 Commercial now accounts for over 70% of our existing Office Commercial paid installed base. Now back to company guidance. And so when you think about that, think about the annuity on-prem business as well as these longer-term Azure contracts as being effectively a book of business to continue to work and convert into as you're talking about this consumption. Segment gross margin dollars increased 26% and 25% in constant currency, and gross margin percentage increased three points year over year, with nearly four points of favorable impact from the change in accounting estimate. And we saw continued strong engagement across our gaming platform. And I know everyone's talked about this acceleration in digital adoption about — across consumer and enterprise. We are building Azure as the world's computer with more data center regions than any other provider, now 66, including new regions in Austria, Brazil, Greece and Taiwan. Revenue was $11.8 billion, increasing 6%, with better than expected performance in Windows OEM non-Pro, Surface and Search. And I think as we've seen in the past nine months, I think the high and mission-critical value of a PC in the commercial environment, whether you're doing that from a remote situation or inside the walls of an office, I think we feel very good about the value that we're offering. Thanks. Sure. Thank you so much for the question. Absolutely. Microsoft Fiscal Year 2019 Third Quarter Earnings Conference Call; Satya Nadella, CEO and Amy Hood, EVP & CFO. If anything, again, the last nine months or so have proven that when it comes to Windows and PCs, they become mission-critical because when it comes to remote learning, remote work and any type of activity and productivity, in particular, depends on having PCs and applications on PCs. And so that aspect, Keith, because of the reasons Satya mentioned, we don't see nearly as much change in that. Most of it, obviously is it's used and it's recognized in-quarter. And then we use all of what is there on our stack to help them, right? More broadly, we are accelerating our innovation across Microsoft 365. Greetings, and welcome to the Microsoft fiscal-year 2021 first quarter earnings conference call. The earnings calendar allows you to sort earnings by market cap, deep dive on estimates and learn historical data for your favorite stocks. In security, new Microsoft Defender simplifies threat detection and response and now includes coverage for Android and iOS as well as multi-cloud and on-premise protection for SQL workloads. In marketing solutions, advertiser demand on LinkedIn returned to near pre-COVID levels, up 40% year over year as marketers use our tools to connect with professionals ready to do business. We expect very strong demand, following the launch of our next-generation Xbox Series X and S consoles, driving supply constrained hardware revenue growth of approximately 40%. In general, I think it's easier if you think about Azure plus the annuity business as being this durable, hybrid, edge, cloud value that Satya is talking about. Accessed Oct. 20, 2020. So that deployment drives application preference for our infrastructure. Shareholder and financial information is available at Microsoft will provide forward-looking guidance in connection with this quarterly earnings announcement on its earnings conference call and webcast. And as companies move online, they also want one unified platform from meetings to phone systems, which Teams delivers. Does it impact SaaS adoption going forward? I look at the holistic deployment options that our customers need for their increasingly distributed applications. And whether that's adding first-line worker scenarios, whether it's increasing in small business, there's so many ways for us to continue to add tremendous value, continue to grow the installed base. Amy? And that's where a lot of productivity gains for a lot of businesses and business process workflows is happening. We do not undertake any duty to update any forward-looking statement. Action items can automatically be assigned in Lists. New Microsoft Stream is the video platform for the enterprise, making it easy to create, share and discover videos at work. And finally, we returned $9.5 billion to shareholders through share repurchases and dividends, an increase of 21% year over year. It's frankly why you see bookings numbers that are very good. It offers voice. You collaborate on a PowerPoint presentation before a meeting and share it with participants in SharePoint. Thank you so much for taking the question. In Surface, revenue will be relatively unchanged, impacted by the year-over-year timing differences of product life cycle transitions noted earlier. Next, segment guidance. And we'll keep working even on the form function innovation as well. Please proceed with your question. The way I think about the computing landscape going forward is if you sort of said at the highest of levels today as a percentage of GDP, tech spend is 5%. And if I go back to the financial analyst briefing back in 2017, that was 50%. Thank you, Mike. Learn more about remote working, online schooling and community support during the COVID-19 outbreak,, Teacher’s vision turns village school into an educational powerhouse, SAP and Microsoft expand partnership and integrate Microsoft Teams across solutions, New feature safeguards passwords in Microsoft Edge, From BettFest 2021: How Microsoft partners help teachers make the most of digital classrooms, Deep dive into the Solorigate second-stage activation. At our first industry-specific call, the Microsoft Cloud for Healthcare will become generally available later this week. Commercial cloud revenue grew 31% to $15.2 billion, and commercial cloud gross margin percentage expanded five points year over year to 71%, driven by the change in accounting estimate for the useful life of server and network equipment assets discussed in our July earnings call. In Productivity and Business Processes, we expect revenue between $12.75 billion and $13 billion. Excellent. It's why you see RPO both less than 12 months, think about that as our core annuity motion, versus longer than 12 months, which are these Azure longer contracts all having very healthy growth. We are also leading in AI and in its enterprise applications. Xbox content and services revenue should grow in the low 20% range, with strong engagement and continued momentum in Game Pass subscribers. With the world's most popular code editing tools, Visual Studio as well as VS Code, developers are more productive than ever. Maybe if you can just walk us through your next chapter of the Teams story and where you see the biggest opportunity, and what other components you're seeing attached to the Teams rollout. Leading companies in every industry are taking advantage of this distributed computing fabric to address their biggest challenges. You'll see that number, as you know, jump around a little bit from quarter-to-quarter. And you can even connect Dynamics 365 to Teams so that you can see customer information and take action. And how important is voice, which is one of the things you mentioned on E5 just to Office 365 going forward? And so that's something that we look forward to. Microsoft Teams User Base Jumps 50 Percent to Reach 115 Million Daily Active Users. You can replay the call and view the transcript on the Microsoft investor relations website. In our consumer business, we expect some benefit from continued consumer PC market growth, though at a more moderated growth rate than last quarter given the traditionally high volume of PCs sold every Q2. Microsoft (NASDAQ:MSFT) Q4 2020 Earnings Call Jul 22, 2020, 5:30 p.m. Operating expense increased 3%, lower than anticipated, driven by greater-than-expected COVID-related savings and investments that shifted to future quarters. And congratulations on a really nice clean quarter. Its mission is to empower every person and every organization on the planet to achieve more. And new integrations between GitHub and Power Apps enables professional developers and domain experts to collaborate. And adding to that, how do you see your supply chain for the cloud components? However, a declining expiry base will impact the growth. ET. Or is there a potential for this to be coming back to the low to mid-single-digit growth that we've seen historically once we pass these tough comps? Today's call is being webcast live and recorded. Past Events. The term "earnings call" is a combination of a company's report of "earnings" (such as its net income or earnings per share) and the conference call to discuss results. The number of petabyte-scale workloads running on Azure has more than doubled year over year. They take longer for planning. During this call, we will be making forward-looking statements, which are predictions, projections or other statements about future events. Web links, telephone numbers, and titles were correct at time of publication, but may since have changed. Thank you for joining us today, and we look forward to speaking with all of you soon. Three billion consumers look to gaming for entertainment, community and achievement, and our ambition is to empower each of them wherever they play. However, growth will be impacted by the strong prior year comparable noted earlier as well as a decline of approximately 30% in our on-premises business, driven by continued transactional weakness and the ongoing customer shift to Office 365. And so we are seeing significant growth. And with that, I'll turn the call over to Satya. These connections generally reflect secular growth opportunities in a sector. Find Microsoft earnings date, updates and upcoming Microsoft earnings report Jan 18, 2021 as well as EPS Forecast and MSFT top analyst price target consensus for Microsoft Azure Cognitive Services make it easier for organizations from Airbus to Volkswagen to build applications that see, hear, speak, search, understand and accelerate decision-making. Yes. Our next question comes from Brent Thill with Jefferies. Please proceed with your question.