Microsoft Ditches Complex Reporting Structure for Simplified Azure Disclosure
Microsoft is following in the footsteps of Amazon and Alphabet by disclosing its Azure revenue on a quarterly basis. The company will report Azure revenue in dollars every quarter, marking a significant change from its previous reporting structure.
The new disclosure comes as part of a broader overhaul that simplifies Microsoft's operating segments from three to two. This revised structure replaces the one that has been in place since 2015 and strips out various cloud services, including GitHub cloud services and developer cloud services.
Under the new structure, Azure revenue grew 42% to $29.42 billion in the June quarter, compared to 43% under the old measure. Chief executive Satya Nadella wrote that Azure 'becomes more purely our consumption-based platform and infrastructure business.'
Microsoft will provide two years of recast results and adjusted guidance, but will stop showing costs and operating margins for the three former segments. The new reporting lines are Agents and Infra, guided to $75.15 billion to $75.75 billion, and Devices and Consumer, guided to $14.7 billion to $15.2 billion.