Cognizant Technology Solutions Corporation · NASDAQ:CTSH
Cognizant Technology Solutions — Q1 2021 Earnings Presentation
18 slides from Cognizant Technology Solutions's earnings presentation, May 5, 2021
Slide 1: First Quarter 2021 Financial Results and Highlights
First Quarter 2021 Financial Results and Highlights May 5, 2021 Exhibit 99.3
Slide 2: Forward-Looking Statements
Forward-Looking Statements This earnings supplement includes statements that may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject to risks, uncertainties, and assum
Slide 3: Results Summary: Q1 2021
Results Summary: Q1 2021 1 See “About Non-GAAP Financial Measures” at the end of this earnings supplement for more information and reconciliations to the most directly comparable GAAP financial measures, as applicable. REVENUE Up 4.2% Y/Y as reported and 2.4% Y/Y constant currency1 OPERATING MARGIN
Slide 4: Revenue, EPS and Operating Margin
$4,110 $4,141 $4,248 $4,284 $4,225 $4,000 $4,243 $4,184 $4,401 $0.91 $0.94 $1.08 $1.07 $0.96 $0.82 $0.97 $0.67 $0.97 Revenue Adjusted Diluted EPS Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 $ In Millions Except Per Share Amounts Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2
Slide 5: Revenue Performance: Q1 2021
$3,283 $826 $292 $1,458 $1,288 $998 $657 Revenue Performance: Q1 2021 PRODUCTS & RESOURCES COMMUNICATIONS, MEDIA & TECHNOLOGY HEALTHCARE FINANCIAL SERVICES NORTH AMERICA EUROPE REST OF WORLD Segments $ IN MILLIONS Geography $ IN MILLIONS +5.0% Y/Y +3.1% Y/Y CC +4.6% Y/Y +2.4% Y/Y CC +7.9% Y/Y +7.0%
Slide 6: Financial Services Revenue
$1,013 $317 $128 Financial Services NORTH AMERICA EUROPE REST OF WORLD Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Y/Y (1.7%) 0.3% 1.9% 1.2% 1.0% (5.2%) (1.5%) (11.1%) 0.5% Y/Y CC 0.2% 1.7% 3.0% 1.5% 1.8% (4.3%) (2.2%) (11.4%) (1.7%) Flat Y/Y (3.8%) Y/Y CC +1.9% Y/Y (5.1%
Slide 7: Healthcare Revenue
$1,101 $158 $29 Healthcare NORTH AMERICA EUROPE REST OF WORLD +70.6% Y/Y +68.1% Y/Y CC +13.7% Y/Y +6.4% Y/Y CC +6.1% Y/Y +6.0% Y/Y CC Revenue $ IN MILLIONS $ IN MILLIONS Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Y/Y 3.9% (1.9%) (1.2%) 1.6% 2.5% 2.0% 4.8% 4.0% 7.9% Y/Y C
Slide 8: Products & Resources Revenue
$718 $209 $71 NORTH AMERICA EUROPE Products & Resources Revenue among manufacturing, logistics, energy and utilities clients grew double-digits in constant currency for the fourth consecutive quarter while retail, consumer goods, travel and hospitality clients continued to be adversely affected by t
Slide 9: Communications, Media & Technology Revenue
$451 $142 $64 $595 $607 $615 $632 $626 $580 $616 $661 $657 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Communications, Media & Technology NORTH AMERICA REST OF WORLD +20.8% Y/Y +19.3% Y/Y CC +16.4% Y/Y +7.6% Y/Y CC Flat Y/Y and CC EUROPE Revenue $ IN MILLIONS Q1 2019 Q2 2
Slide 10: Employee Metrics
83% 83% 84% 85% 83% 80% 85% 87% 85% 91% 92% 92% 92% 91% 91% 93% 91% 92% Offshore, Excluding Trainees % Onsite % Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Employee Metrics Headcount and Annualized Attrition Utilization 285.8 288.2 289.9 292.5 291.7 281.2 283.1 289.5 296.
Slide 11: Cash Flow, Balance Sheet & Capital Allocation
$121 $121 $120 $118 $128 $86 $403 $580 $310 $511 $248 $788 $240 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 $453 $480 $487 $617 $1,123 $1,347 $2,247 $1,621 $1,350 FY2019 FY2020 Trailing 12-Months Cash Flow, Balance Sheet & Capital Allocation $ IN MILLIONS Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
Slide 12: 2021 Guidance
2021 Guidance1 1 Guidance is as of May 5, 2021 and does not account for any potential impact from events such as changes to tax and immigration policies. 2 A full reconciliation of Adjusted Operating Margin, Adjusted Diluted EPS and Adjusted effective tax rate guidance to the corresponding GAAP meas
Slide 13: APPENDIX: About Non-GAAP Financial Measures
APPENDIX: About Non-GAAP Financial Measures
Slide 14: About Non-GAAP Financial Measures
To supplement our financial results presented in accordance with GAAP, this earnings supplement includes references to the following measures defined by the Securities and Exchange Commission as non-GAAP financial measures: Adjusted Income From Operations, Adjusted Operating Margin, Adjusted Diluted
Slide 15: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Please refer to page 16, 17 and 18 of this earnings supplement for corresponding Non-GAAP notes. (in millions, except per share amounts) Three Months Ended: Full Year Mar 31, 2019 Jun 30, 2019 Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Jun 30, 2020 Sep 30,
Slide 16: Reconciliations of Non-GAAP Financial Measures: Notes
Reconciliations of Non-GAAP Financial Measures Notes: (a) During 2019 and 2020, we incurred realignment charges that consisted of employee separation costs, employee retention costs and professional fees. The total costs related to the realignment are reported in "Restructuring charges" in our conso
Slide 17: Reconciliations of Non-GAAP Financial Measures: Tax Impacts
Reconciliations of Non-GAAP Financial Measures (f) Presented below are the tax impacts of each of our non-GAAP adjustments to pre-tax income: 2019 2020 2021 FY Three months ended: Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 2020 Tax impacts of non-GAAP adjustments: Realignment cha
Slide 18: Reconciliation of Free Cash Flow
Reconciliations of Non-GAAP Financial Measures Reconciliation of free cash flow Three Months Ended (in millions) Mar 31, 2019 Jun 30, 2019 Sep 30, 2019 Dec 31, 2019 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Net cash provided by operating activities $ 269 $ 575 $ 717 $ 938 $ 49
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