Cisco Systems, Inc. · NASDAQ:CSCO
Cisco Systems — Q4 FY2022 Earnings Presentation
21 slides from Cisco Systems's earnings presentation, Aug 17, 2022
Slide 1: Q4 Fiscal Year 2022 Conference Call
Q4 Fiscal Year 2022 Conference Call August 17, 2022 © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains projections and other forward-looking statements regarding future events or the future financial performance of Cisco, including future operating results. These projections and statements are only predictions. Actual events or results may differ
Slide 3: Business Momentum & Key Trends
Business Momentum & Key Trends © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Slide 4: Q4 FY 2022 Highlights
Q4 FY 2022 Highlights • Strong demand reflected by record full year product orders and backlog o Q4 product orders up greater than 15% sequentially • Delivered revenue above our guidance range and non-GAAP EPS at the high end, resulting in record EPS for the full year • Continued progress on busines
Slide 5: Financial Overview
Financial Overview © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Slide 6: Revenue and Total Gross Margin
Q4 FY 2022 Revenue and Total Gross Margin Revenue Total Gross Margin % Q4 FY'21 Q3 FY’22 Q4 FY’22 Q4 FY'21 Q3 FY’22 Q4 FY’22 $M (except percentages) Americas $7,731 $7,638 $7,470 66.2% 64.8% 62.6% EMEA 3,297 3,271 3,577 65.0% 65.9% 64.4% APJC 2,098 1,926 2,055 64.4% 66.4% 63.6% Geographic Total $13,
Slide 7: Revenue Highlights
Q4 FY 2022 Revenue Highlights Product Category $M Y/Y Secure, Agile Networks $6,094 (1%) Internet for the Future 1,257 (10%) Collaboration 1,164 2% End-to-End Security 984 20% Optimized Application Experiences 185 8% Other Products 3 (22%) Services 3,414 0% Total Cisco $13,102 0% Amounts may not sum
Slide 8: Software Revenue
Q4 FY 2022 Software Revenue $B (except percentages) 81% 83% 83% + 6% Y/Y - 2% Y/Y - 3% Y/Y + 9% Y/Y + 1% Y/Y - 1% Y/Y $4.0 $3.9 $3.7 $3.2 $3.3 $3.0 Q4 FY 2021 Q3 FY 2022 Q4 FY 2022 Software Subscription Revenue Total Software Revenue Software Subscription Revenue as a % of Total Software Revenue © 2
Slide 9: Subscriptions as a % of Total Revenue
Q4 FY 2022 Subscriptions as a % of Total Revenue $B (except percentages) 8.0 44% 44% 43% 45% 7.0 40% $5.7 $5.8 + 2% Y/Y 6.0 $5.5 35% 5.0 30% $2.5 $2.5 + 2% Y/Y $2.5 25% 4.0 20% 3.0 15% 2.0 $3.2 $3.0 $3.3 10% + 1% Y/Y 1.0 5% - 0% Q4 FY 2021 Q3 FY 2022 Q4 FY 2022 Software Subscription Revenue Service
Slide 10: Annualized Recurring Revenue (ARR)
Q4 FY 2022 Annualized Recurring Revenue (ARR) $B (except percentages) $22.4 $22.9 + 8% Y/Y $21.2 $12.7 $13.0 $12.4 + 4% Y/Y $8.8 $9.7 $10.0 + 13% Y/Y Q4 FY 2021 Q3 FY 2022 Q4 FY 2022 Product Service Amounts may not sum and percentages may not recalculate due to rounding. Annualized Recurring Revenue
Slide 11: Remaining Performance Obligations
Q4 FY 2022 Remaining Performance Obligations $B (except percentages) $30.9 $31.5 + 2% Y/Y $30.2 Short term RPO of $16.9B, up 4% year over year, represents 54% of total RPO $14.6 $14.0 $14.6 0% Y/Y Remaining Performance Obligations (RPO) RPO is an indicator of future revenue Future Revenue Represents
Slide 12: Product Orders
Q4 FY 2022 Product Orders Total Cisco: (6%) Y/Y Geographic Segment Y/Y Customer Market Y/Y Americas (9%) Enterprise (15%) Public Sector (3%) EMEA (4%) Commercial 1% APJC 1% Service Provider (7%) © 2022 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
Slide 13: GAAP Income Statement Highlights
Q4 FY 2022 GAAP Income Statement Highlights $M (except per-share amounts and percentages) Q4 FY 2021 Q3 FY 2022 Q4 FY 2022 Revenue $13,126 $12,835 $13,102 Year/Year Change 8% 0% 0% Product $9,716 $9,448 $9,688 Service $3,410 $3,387 $3,414 Gross Margin 63.6% 63.3% 61.3% Product Gross Margin 62.7% 61.
Slide 14: Non-GAAP Income Statement Highlights
Q4 FY 2022 Non-GAAP Income Statement Highlights $M (except per-share amounts and percentages) Q4 FY 2021 Q3 FY 2022 Q4 FY 2022 Revenue $13,126 $12,835 $13,102 Year/Year Change 8% 0% 0% Product $9,716 $9,448 $9,688 Service $3,410 $3,387 $3,414 Gross Margin 65.6% 65.3% 63.3% Product Gross Margin 65.0%
Slide 15: Key Financial Measures
Q4 FY 2022 Key Financial Measures $M Q4 FY 2021 Q3 FY 2022 Q4 FY 2022 Cash, Cash Equivalents and Investments $24,518 $20,108 $19,267 Operating Cash Flow $4,504 $3,661 $3,677 Accounts Receivable $5,766 $5,783 $6,622 Inventory $1,559 $2,231 $2,568 Deferred Revenue: $22,164 $22,293 $23,264 Product Defe
Slide 16: Capital Allocation
Q4 FY 2022 Capital Allocation Total Capital Allocation Share Repurchases ($M) $2,402 Dividends Paid ($M) 1,567 Total ($M) $3,969 Quarterly Dividends Per Share $0.38 Share Repurchases Amount Purchased ($M) $2,402 Number of Shares (M) 54 Avg. Price Per Share $44.02 Approximately $15.2B remaining autho
Slide 17: FY 2022 GAAP Income Statement Highlights
FY 2022 GAAP Income Statement Highlights $M (except per-share amounts and percentages) FY 2021 FY 2022 Revenue $49,818 $51,557 Year/Year Change 1% 3% Product $36,014 $38,018 Service $13,804 $13,539 Gross Margin 64.0% 62.5% Product Gross Margin 63.1% 61.0% Service Gross Margin 66.5% 66.8% Operating E
Slide 18: FY 2022 Non-GAAP Income Statement Highlights
FY 2022 Non-GAAP Income Statement Highlights $M (except per-share amounts and percentages) FY 2021 FY 2022 Revenue $49,818 $51,557 Year/Year Change 1% 3% Product $36,014 $38,018 Service $13,804 $13,539 Gross Margin 66.1% 64.6% Product Gross Margin 65.4% 63.3% Service Gross Margin 67.8% 68.3% Operati
Slide 19: Q&A
Q&A © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Slide 20: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS These presentation slides and the related conference call contain forw ard-looking statements, w hich are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forw ard-looking statements include, among other things, statement
Slide 21: © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
© 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential