Microsoft CEO Nadella said revenue would reach 0 billion by 2030
Microsoft CEO Nadella said revenue would reach 0 billion by 2030

Microsoft Corp CEO Satya Nadella speaks with senior officials and CEOs in the East Room of the White House in Washington, DC, U.S., Thursday, June 22, 2023.

Chris Klaibornes | China National Petroleum Corporation | Bloomberg | Getty Images

Microsoft Chief Executive Satya Nadella told other executives and board members last year that the software company aims to generate $500 billion in revenue by fiscal 2030, more than doubling its current size.

The comments emerged in a memo made public on Monday that pointed to annual revenue growth of at least 10 percent as part of Microsoft’s pending hearing in federal court. Activision Blizzard get.

Microsoft, one of the most valuable companies in the world, doesn’t tend to issue forward financial forecasts. In its latest earnings call, the company only provided guidance for the current period, or fiscal fourth quarter.

In the newly disclosed 15-page memo and accompanying 21-page document, Nadella said Microsoft aims to achieve “by implementing an evolving strategy that is growth-oriented and consistent with our enduring mission and culture.” 2030 goals.

Nadella also made projections for shareholder returns in the form of dividends and buybacks.

Nadella wrote in the June 7, 2022 filing, a few weeks before the end of the fiscal year: “We believe this ambition and approach will help us deliver more than 10% to our shareholders over this period.” annual rate of return.”

Nadella described “20/20” goals, including 20% ​​year-over-year revenue growth and 20% operating income growth for fiscal 2022 and subsequent years. In 2022, Microsoft’s revenue will grow 18% to $198.27 billion, with operating income up 19%.

In the memo, Nadella used the term “Microsoft Plus” to describe the product aimed at consumers. But he said the main driver of growth was Microsoft Cloud, a term that refers to a broad set of offerings for business customers, including the Azure public cloud (which competes with other cloud services). amazon web services and Google Cloud), part of Microsoft 365 productivity software, and part of LinkedIn.

“Our top priority is to sustain above-market growth to widen our lead over GCP and close the gap over AWS,” Nadella wrote in an accompanying document.

The US Federal Trade Commission is trying to block Microsoft’s $68.7 billion acquisition of game publisher Activision Blizzard (Activision).

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