Microsoft CEO Nadella said last year goal is to reach $500 billion in sales by 2030, court filing shows
POINTS TO REMEMBER
The court filing revealed that Microsoft CEO Satya Nadella set a 2030 financial goal for his company last year.
In his presentation to fellow executives and board members, Nadella predicted that the software company would generate annual growth of at least 10%.
By 2030, the company would have revenue of $500 billion, more than doubling its current level.
In a statement last year, Microsoft CEO Satya Nadella stated that the company aims to double its revenue by the 2030 fiscal year to $500 billion.
During a hearing on Monday in federal court over Microsoft’s pending acquisition of Activision Blizzard, a memo pointing to revenue growth of at least 10% was made public.
One of the world’s most valuable companies doesn’t tend to issue long-term financial projections. According to the company, it only provided guidance for the current quarter in its most recent earnings call.
Microsoft aims to achieve its 2030 goal “by implementing an evolving strategy that is growth-oriented and consistent with our enduring mission and culture,” according to a 15-page memo and accompanying 21-page document.
A forecast for dividends and buybacks was also presented by Nadella.
As Nadella wrote in the document dated June 7, 2022, weeks before the fiscal year end, “we believe this ambition will enable us to deliver excess of 10% annual returns to our shareholders.”
According to Nadella, the company aims to grow its revenues by 20% year-over-year, as well as operating income by 20% for the fiscal year 2022 and subsequent years. Microsoft reached $198.27 billion in revenue and 19% growth in operating income in 2022.