Dxc Technology Company · NYSE:DXC
Dxc Technology — Q1 2025 Earnings Presentation
24 slides from Dxc Technology's earnings presentation, Aug 8, 2024
Slide 1: 1st Quarter Fiscal Year 2025 Earnings Presentation
1st Quarter Fiscal Year 2025 Earnings Presentation August 8, 2024
Slide 2: Non-GAAP Financial Measures
Non-GAAP Financial Measures We present Non-GAAP financial measures which are derived from the statements of operations, cash flow and balance sheets of DXC. These Non-GAAP financial measures include earnings before interest and taxes ("EBIT"), adjusted EBIT, adjusted EBIT excluding pension income, a
Slide 3: Forward-Looking Statements
Forward-Looking Statements All statements and assumptions contained in this earnings presentation that do not directly and exclusively relate to historical facts constitute “forward-looking statements.” Forward-looking statements often include words such as “anticipates,” “believes,” “estimates,” “e
Slide 4: Agenda for Today
Agenda for Today 1 Overview of Results and Update on Strategic Initiatives 2 Q1 Fiscal Year 2025 Financial Results Review and Guidance Update 3 Q&A 4
Slide 5: CEO Update
CEO Update Q1 Performance Strategic Initiatives DXC’s Commitment Highlights Update to Customers 5
Slide 6: CFO Update: Q1 Organic Revenue
CFO Update: Q1 Fiscal Year 2025 Organic Revenue* DXC Global Business Global Infrastructure YoY Growth Services (GBS) Services (GIS) YoY Growth YoY Growth (4%) 1% (9%) * Reconciliation of GAAP to Non-GAAP measures provided in appendix 6
Slide 7: CFO Update: Q1 Profit and Free Cash Flow
CFO Update: Q1 Fiscal Year 2025 Profit and Free Cash Flow* Adjusted EBIT Margin Adjusted EPS Free Cash Flow 6.9% $0.74 $45M +40 bps YoY +17% YoY vs. ($75M) in Q1 FY24 * Reconciliation of GAAP to Non-GAAP measures provided in appendix 7
Slide 8: CFO Update: Q1 GBS Results
CFO Update: Q1 Fiscal Year 2025 GBS Results GBS YoY Organic Segment Profit Revenue Book-to-Bill Ratio Revenue Growth* Margin $1,673M 1% 10.8% 0.83x * Reconciliation of GAAP to Non-GAAP measures provided in appendix 8
Slide 9: CFO Update: Q1 GBS Results by Offering
CFO Update: Q1 Fiscal Year 2025 GBS Results by Offering Revenue YoY Organic Revenue Growth* Book-to-Bill Ratio Consulting & Engineering $1,284M (1%) 0.88x Services Insurance Software & BPS $389M 5% 0.65x GBS $1,673M 1% 0.83x * Reconciliation of GAAP to Non-GAAP measures provided in appendix 9
Slide 10: CFO Update: Q1 GIS Results
CFO Update: Q1 Fiscal Year 2025 GIS Results GIS YoY Organic Revenue Segment Profit Revenue Book-to-Bill Ratio Growth* Margin $1,563M (9%) 7.3% 0.70x * Reconciliation of GAAP to Non-GAAP measures provided in appendix 10
Slide 11: CFO Update: Q1 GIS Results by Offering
CFO Update: Q1 Fiscal Year 2025 GIS Results by Offering Revenue YoY Organic Revenue Growth* Book-to-Bill Ratio Cloud, ITO & $1,206M (8%) 0.67x Security Modern Workplace $357M (14%) 0.80x GIS $1,563M (9%) 0.70x * Reconciliation of GAAP to Non-GAAP measures provided in appendix 11
Slide 12: CFO Update: Q1 Balance Sheet & Free Cash Flow
CFO Update: Q1 Fiscal Year 2025 Balance Sheet & Free Cash Flow Capex + Originations Total Debt as % of Revenue Free Cash Flow* $4.1B 6.1% $45M ($438M) YoY Capex $193M vs. ($75M) in Q1 FY24 Lease Originations $7M * Reconciliation of GAAP to Non-GAAP measures provided in appendix 12
Slide 13: CFO Update: Full Year Fiscal 2025 & Fiscal Q2 2025 Outlook
CFO Update: Full Year Fiscal 2025 & Fiscal Q2 2025 Outlook* Full Fiscal Year 2025 YoY Organic Adjusted EBIT Non-GAAP Free Cash Flow Revenue Growth Margin Diluted EPS (6.0%) – (4.0%) 6.5% – 7.0% $2.75 – $3.00 ~$450M Q2 FY25 YoY Organic Adjusted EBIT Non-GAAP Revenue Growth Margin Diluted EPS (6.5%) –
Slide 14: TECHNOLOGY
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Slide 15: Appendix
Appendix Non-GAAP Reconciliations Definitions 15
Slide 16: YoY Organic Revenue Growth
YoY Organic Revenue Growth ($M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Total FY24 Q1 FY25 GBS revenue 1,703 1,709 1,696 1,712 6,820 1,673 YoY GBS revenue growth (3.1%) (0.2%) (2.4%) (2.2%) (2.0%) (1.8%) Foreign currency 0.8% (1.6%) (1.4%) 0.6% (0.4%) 1.8% Acquisitions and divestitures 5.6% 4.2% 4.1% 1.3% 3
Slide 17: Non-GAAP Reconciliation Organic Revenue
Non-GAAP Reconciliation Organic Revenue Insurance Cloud ITO + Modern Acquisitions & (in $M) CES Total Software & BPS Security Workplace Divestitures Revenue 1,284 389 1,206 357 - 3,236 Prior-year revenue 1,316 378 1,320 423 9 3,446 YoY change $ (32) 11 (114) (66) (9) (210) YoY change % Revenue (2.4%
Slide 18: Reconciliation of Segment Profit to Pretax Income
Reconciliation of Segment Profit to Pretax Income GBS ($M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Total FY24 Q1 FY25 Segment revenue 1,703 1,709 1,696 1,712 6,820 1,673 Segment profit 192 213 202 228 835 181 GBS profit % 11.3% 12.5% 11.9% 13.3% 12.2% 10.8% GIS ($M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Total FY2
Slide 19: Adjusted EBIT and Adjusted EBITDA Reconciliation
Adjusted EBIT and Adjusted EBITDA Reconciliation EBIT to Adjusted EBIT ($M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Total FY24 Q1 FY25 Net income (loss) 42 99 140 (195) 86 25 Income tax expense (benefit) 36 29 72 (114) 23 43 Interest income (49) (53) (56) (56) (214) (51) Interest expense 66 78 78 76 298 72
Slide 20: Non-GAAP Reconciliation – EPS
Non-GAAP Reconciliation – EPS Non-GAAP EPS Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Total FY24 Q1 FY25 GAAP EPS (diluted) $0.17 $0.49 $0.81 ($1.10) $0.46 $0.14 Restructuring costs 0.07 0.13 0.16 0.08 0.44 0.17 TSI — 0.01 0.01 0.01 0.03 0.03 Amortization of acquired intangible assets 0.32 0.34 0.39 0.36 1.40
Slide 21: DXC Free Cash Flow
DXC Free Cash Flow Free Cash Flow (in $M) Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Total FY24 Q1 FY25 Cash flows from operating activities 127 248 706 280 1,361 238 Less capex Purchase of property & equipment (55) (53) (36) (38) (182) (48) Payments for transition & transformation contract costs (62) (48) (49
Slide 22: Non-GAAP and Other Definitions
Non-GAAP and Other Definitions Segment profit: Segment revenue less costs of services, segment selling, general and administrative, depreciation and amortization, and other income, excluding the movement in foreign currency exchange rates on our foreign currency denominated assets and liabilities an
Slide 23: Non-GAAP Adjustments
Non-GAAP Adjustments Our Non-GAAP adjustments include: • Restructuring costs: Includes costs, net of reversals, related to workforce and real estate optimization and other similar charges. • Transaction, separation and integration-related (“TSI”) costs: Includes costs related to integration, separat
Slide 24: TECHNOLOGY
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DXC Technology Company — Q1 2025 Earnings Presentation on 6ix