Slide 1: Q1 Fiscal Year 2025 Conference Call
Q1 Fiscal Year 2025 Conference Call November 13, 2024
Slide 2: Forward-Looking Statements and GAAP Reconciliation
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 © 2024 Cisco and/or its affiliates. All rights reserved. Cisco Confidential -
Slide 4: Q1 FY 2025 Summary
Q1 FY 2025 Summary • Overall acceleration in product orders, indicating that the period of inventory digestion is fully behind us reflecting normalizing demand • Product order growth up 20% y/y; up 9% y/y excluding Splunk • Revenue and Non-GAAP EPS results at or above the high end of our guidance •
Slide 5: Cisco positioned for AI adoption
Cisco positioned for AI adoption AI Training Infrastructure AI Connectivity AI Inference Major hyperscaler AI network design win in Q1 Q1 FY25 saw more deals with customer Announced new technology geared for FY25. Q1 results demonstrate Cisco’s applications and use cases requiring network Enterprise
Slide 6: Financial Overview
Financial Overview © 2024 Cisco and/or its affiliates. All rights reserved. Cisco Confidential -
Slide 7: Revenue and Total Gross Margin
Q1 FY 2025 Revenue and Total Gross Margin $M (except percentages) Revenue Total Gross Margin % Q1 FY’24 Q4 FY’24 Q1 FY’25 Q1 FY’24 Q4 FY’24 Q1 FY’25 Americas $9,022 $8,068 $8,252 66.2% 67.7% 69.6% EMEA 3,664 3,511 3,588 69.5% 69.2% 70.3% APJC 1,982 2,064 2,001 67.0% 66.4% 66.4% Geographic Total $14,
Slide 8: Revenue Highlights
Q1 FY 2025 Revenue Highlights Category $M Y/Y Networking $6,753 (23%) Security 2,017 100% Collaboration 1,085 (3%) Observability 258 36% Services 3,727 6% Total Cisco $13,841 (6%) Excluding Splunk, Security and Observability grew 2% and 1%, respectively, in the first quarter of fiscal 2025. Amounts
Slide 9: Annualized Recurring Revenue (ARR)
Q1 FY 2025 Annualized Recurring Revenue (ARR) $B (except percentages) $29.6 $29.9 +22% Y/Y $24.5 $13.7 $13.8 +4% Y/Y $13.2 $16.1 $15.8 +42% Y/Y $11.3 Q1 FY 2024 Q4 FY 2024 Q1 FY 2025 Product Services Amounts may not sum and percentages may not recalculate due to rounding. Annualized Recurring Revenu
Slide 10: Remaining Performance Obligations
Q1 FY 2025 Remaining Performance Obligations $B (except percentages) $41.0 $40.0 +15% Y/Y $34.8 $20.2 $19.7 +15% Y/Y Product RPO up 24% Y/Y $17.1 Services RPO up 7% Y/Y $17.6 $20.9 $20.3 +15% Y/Y Q1 FY 2024 Q4 FY 2024 Q1 FY 2025 Short Term RPO Long Term RPO Amounts may not sum and percentages may no
Slide 11: Product Orders
Q1 FY 2025 Product Orders Y/Y Y/Y without Splunk Total Product Orders 20% 9% Geographic Segment Americas 17% 4% EMEA 26% 16% APJC 25% 18% Customer Market Enterprise 33% 17% Public Sector 2% (6%) Service Provider & Cloud 28% 22% © 2024 Cisco and/or its affiliates. All rights reserved. Cisco Confident
Slide 12: GAAP Income Statement Highlights
Q1 FY 2025 GAAP Income Statement Highlights $M (except per-share amounts and percentages) Q1 FY 2024 Q4 FY 2024 Q1 FY 2025 Revenue $14,668 $13,642 $13,841 Year/Year Change (1) 8% (10%) (6%) Product $11,139 $9,858 $10,114 Services $3,529 $3,784 $3,727 Gross Margin 65.2% 64.4% 65.9% Product Gross Marg
Slide 13: Non-GAAP Income Statement Highlights
Q1 FY 2025 Non-GAAP Income Statement Highlights $M (except per-share amounts and percentages) Q1 FY 2024 Q4 FY 2024 Q1 FY 2025 Revenue $14,668 $13,642 $13,841 Year/Year Change (1) 8% (10%) (6%) Product $11,139 $9,858 $10,114 Services $3,529 $3,784 $3,727 Gross Margin 67.1% 67.9% 69.3% Product Gross
Slide 14: Key Financial Measures
Q1 FY 2025 Key Financial Measures $M Q1 FY 2024 Q4 FY 2024 Q1 FY 2025 Cash, Cash Equivalents and Investments $23,523 $17,854 $18,671 Operating Cash Flow $2,371 $3,730 $3,661 Inventory $3,342 $3,373 $3,143 Deferred Revenue: $25,659 $28,475 $27,502 Product Deferred Revenue $11,689 $13,219 $12,941 Serv
Slide 15: Capital Allocation
Q1 FY 2025 Capital Allocation Total Capital Allocation Share Repurchases ($M) $2,003 Dividends Paid ($M) 1,592 Total ($M) $3,595 Quarterly Dividend per Share $0.40 Share Repurchases Amount Purchased ($M) $2,003 Number of Shares (M) 40 Avg. Price per Share $49.56 Approximately $3.2B remaining authori
Slide 16: Forward-Looking Statements
Forward-Looking Statements These presentation slides and the related conference call contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements r
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