Slide 1: Keysight Technologies Q1 Fiscal Year 2024 Results
Keysight Technologies Q1 Fiscal Year 2024 Results February 20, 2024
Slide 2: Safe Harbor
Safe Harbor This communication contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created therein. Statements preceded by, followed by, or that
Slide 3: Q1'24 Highlights
Q1’24 Highlights • First quarter revenue and earnings per share exceeded the high end of guidance Q1 results demonstrate strong execution in a • Gross margin of 67% increased 200bps y/y; operating margin of 28% 1 challenging market environment and resilience of financial model • Core* operating ma
Slide 4: Q1'24 Non-GAAP Financial Highlights
Q1’24 Non-GAAP Financial Highlights Orders Revenue Operating Margin EPS $1.220B $1.259B 28.2% $1.63 -6%y/y (-12% core*) -9%y/y (-14% core*) -150 basis points y/y -19%y/y * Core growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months, reconciliations included
Slide 5: Revenue by Segment & by Region
Revenue by Segment & by Region Q1'24 Revenue: $1.259B 5
Slide 6: Revenue Trend by Region
Revenue Trend by Region -8% y/y (-10% core*): Revenue declines in -1% y/y (-21% core*): Revenue decline in -13% y/y (-14% core*): Revenue declines CC and EI, ADG flat. CC, partly offset by growth in EI and ADG. in CC, EI and ADG. Key: * Core revenue growth excludes the impact of currency, acquisitio
Slide 7: Q1'24 Communications Solutions Group Highlights
Q1’24 Communications Solutions Group Highlights Revenue • Record gross margin of 68.4% despite y/y revenue decline $839M • Commercial Communications: Investment grew in AI-driven network and data -11% y/y (-12% core*) center applications, while O-RAN, non-terrestrial networks, and 5G RedCap activit
Slide 8: Q1'24 Electronic Industrial Solutions Group Highlights
Q1’24 Electronic Industrial Solutions Group Highlights Revenue • Automotive: Revenue declined vs. strong prior year compare. EV solutions $420M demand grew, while production-related investment was muted. -5% y/y (-19% core*) • Semiconductor: New fab projects further delayed, while demand for memory,
Slide 9: Q1'24 Revenue By End Market
Q1’24 Revenue By End Market End Market Revenue YoY % Commercial $544M -14% Communications Aerospace, Defense & $295M -5% Government Electronic Industrial $420M -5% Solutions Total $1,259M -9% 9
Slide 10: FY23 Non-GAAP Highlights & Annual Trend
FY23 Non-GAAP Highlights & Annual Trend Orders Revenue Operating Margin EPS $5.190B $5.464B 30.2% $8.33 4% CAGR 6% CAGR +620 basis points 15% CAGR 4-year CAGR from 2019 to 2023. Reconciliations to closest GAAP equivalent provided for all non-GAAP measures. Non-GAAP revenue excludes the impact of 10
Slide 11: Guidance and Financial Considerations
Guidance and Financial Considerations Q2'24 Guidance Revenue $1.190B – $1.210B Non-GAAP Earnings per share $1.34 – $1.40 Q2'24 Financial Considerations • Interest Income, Interest Expense and Other Income/Expense: ~$4-6M net income per quarter • Non-GAAP tax rate of 17% • Guidance assumes Q2 weighte
Slide 12: Investor Resources
Investor Resources CSR Reports Quick Links 2022 CSR Report 2022 DEI Report 2023 TCFD Report Why Keysight Recent Investor Presentations and Webcasts The Keysight Leadership Model Corporate Social Responsibility Investor Day March 2023 Videos (single-click access to each executive’s presentation) Comp
Slide 13: Reconciliations
WW KEYSIGHT Reconciliations
Slide 14: Operating Margin Reconciliation
OPERATING MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended January 31, 2024 2023 Income from operations, as reported $ 221 $ 322 Amortization of acquisition-related balances 38 23 Share-based compensation 50 55 Acquisition and integration costs 17 2
Slide 15: Gross Margin Reconciliation
GROSS MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended January 31, 2024 2023 Gross Profit, as reported $ 813 $ 883 Amortization of acquisition-related balances 17 9 Share-based compensation 8 9 Restructuring and others 8 — Non-GAAP Gross Profit $ 846
Slide 16: Net Income and Diluted EPS Reconciliation
NET INCOME AND DILUTED EPS RECONCILIATION (In millions, except per share data) (Unaudited) PRELIMINARY Three months ended January 31, 2024 2023 Net Diluted Net Diluted Income EPS Income EPS GAAP Net income $ 172 $ 0.98 $ 260 $ 1.45 Non-GAAP adjustments: Amortization of acquisition-related balances 3
Slide 17: Reconciliations of Core Revenue by Segment and Region
RECONCILIATIONS OF CORE REVENUE BY SEGMENT AND REGION (In millions) (Unaudited) PRELIMINARY Year-over-Year Revenue from acquisitions or Currency Revenue divestitures Adjustments Core Revenue Revenue by Segment Q1'24 Q1'23 YoY % Q1'24 Q1'24 Q1'24 Q1'23 YoY % Communications Solutions Group $ 839 $ 939
Slide 18: Revenue by End Markets
REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Q1'24 Q1'23 Inc/(Dec) Aerospace, Defense and Government $ 295 $ 310 (5)% Commercial Communications 544 629 (14)% Electronic Industrial 420 442 (5)% Total Revenue $ 1,259 $ 1,381 (9)% Refer to non-GAAP financial measures slide 18
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Management uses both GAAP and non-GAAP financial measures to analyze and assess the overall performance of the business, to make operating decisions and to forecast and plan for future periods. We believe that our investors benefit from seeing our results “through the eye