Slide 1: Keysight Technologies Q3 Fiscal Year 2024 Results
Keysight Technologies Q3 Fiscal Year 2024 Results August 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: Q3'24 Highlights
Q3’24 Highlights • Third quarter revenue of $1.2B and earnings per share of $1.57 ($1.41 excluding impact of change in non-GAAP tax rate) exceeded the high end of the guidance range. Results demonstrated strong execution in a • Selling, General and Administrative expenses remain well-managed and dec
Slide 4: Q3'24 Non-GAAP Financial Highlights
Q3’24 Non-GAAP Financial Highlights Orders Revenue Operating Margin EPS $1.249B $1.217B 24.4% $1.57 —%y/y (-1%core*) -12%y/y (-13% core*) -690 basis points y/y -28%y/y * Core growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months. 4 Reconciliations to close
Slide 5: Revenue by Segment & by Region
Revenue by Segment & by Region Q3'24 Revenue: $1.217B 5
Slide 6: Revenue Trend by Region
Revenue Trend by Region -10% y/y (-11% core*): Revenue declines -9% y/y (-15% core*): Revenue declines -15% y/y (-15% core*): Revenue declines in CC, ADG and EI. CC and EI; growth in ADG. in EI and ADG; growth in CC. Key: * Core revenue growth excludes the impact of currency, acquisitions or divesti
Slide 7: Q3'24 Communications Solutions Group Highlights
Q3’24 Communications Solutions Group Highlights • Gross margin of 67% reflecting strong solutions differentiation. Revenue $847M • Commercial Communications: Revenue declined year-over-year and improved modestly on a sequential basis. Orders grew low double digits. -8% y/y (-8% core*) Strong growth
Slide 8: Q3'24 Electronic Industrial Solutions Group Highlights
Q3’24 Electronic Industrial Solutions Group Highlights Revenue • Automotive: Lower revenue and orders y/y as EV investments were delayed. $370M AV orders rose mid-single digits on a sequential basis. -20% y/y (-24% core*) • Semiconductor: Orders grew low single digits and were up strongly q/q. Found
Slide 9: Q3'24 Revenue By End Market
Q3’24 Revenue By End Market End Market Revenue YoY % Commercial $572M -6% Communications Aerospace, Defense & $275M -10% Government Electronic Industrial $370M -20% Solutions Total $1,217M -12% 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 fai
Slide 11: Guidance and Financial Considerations
Guidance and Financial Considerations 2024 Guidance Q4'24 Guidance (midpoint) Revenue $1.245B – $1.265B $4.95B Non-GAAP Earnings per share $1.53 – $1.59 $6.18 Q4'24 Financial Assumptions • Interest Income, Interest Expense and Other Income/Expense: ~$1-3M net income per quarter • Non-GAAP tax rate o
Slide 12: Reconciliations
WW KEYSIGHT Reconciliations
Slide 13: Operating Margin Reconciliation
OPERATING MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended Nine months ended July 31, July 31, 2024 2023 2024 2023 Income from operations, as reported $ 205 $ 365 $ 603 $ 1,041 Amortization of acquisition-related balances 31 23 106 71 Share-based com
Slide 14: Reconciliation of Core Operating Margin
RECONCILIATION OF CORE OPERATING MARGIN (In millions) (Unaudited) PRELIMINARY Three months ended Nine months ended July 31, July 31, 2024 2023 2024 2023 Non-GAAP income from operations $ 297 $ 433 $ 946 $ 1,265 Adjustments: Operating Profit (loss) from acquisitions or divestitures (4) — 23 — Currenc
Slide 15: Gross Margin Reconciliation
GROSS MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended Nine months ended July 31, July 31, 2024 2023 2024 2023 Gross Profit, as reported $ 755 $ 896 $ 2,331 $ 2,688 Amortization of acquisition-related balances 17 9 51 29 Share-based compensation 7 4
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 Nine months ended July 31, July 31, 2024 2023 2024 2023 Net Diluted Net Diluted Net Diluted Diluted Income EPS Income EPS Income EPS Net Income EPS GAAP Net income $ 389 $ 2.22 $
Slide 17: Reconciliation of Core Revenue
RECONCILIATION OF CORE REVENUE (In millions) (Unaudited) PRELIMINARY Three months ended Nine months ended July 31, July 31, Percent Percent 2024 2023 Inc/(Dec) 2024 2023 Inc/(Dec) Revenue $ 1,217 $ 1,382 (12)% $ 3,692 $ 4,153 (11)% Adjustments: Revenue from acquisitions or divestitures (33) — (138)
Slide 18: 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 Q3'24 Q3'23 YoY % Chg. Q3'24 Q3'24 Q3'24 Q3'23 YoY % Chg. Communications Solutions Group $
Slide 19: Revenue by End Markets
REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Q3'24 Q3'23 Inc/(Dec) Aerospace, Defense and Government $ 275 $ 307 (10)% Commercial Communications 572 611 (6)% Electronic Industrial 370 464 (20)% Total Revenue $ 1,217 $ 1,382 (12)% Please refer to the last slide for details on
Slide 20: Selling, General & Administrative Expenses Reconciliation
SELLING, GENERAL & ADMINISTRATIVE EXPENSES RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Year-over-year Percent Q3'24 Q3'23 Inc/(Dec) Selling, general & administrative expenses, as reported $ 329 $ 319 Amortization of acquisition-related balances (14) (14) Share-based comp
Slide 21: 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