Vertiv Holdings, Llc · NYSE:VRT
Vertiv — Q3 2024 Earnings Presentation
27 slides from Vertiv's earnings presentation, Oct 23, 2024
Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results October 23, 2024
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation, and other statements that Vertiv Holdings Co. (“Company”) may make in connection therewith, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to V
Slide 3: Third quarter 2024 key messages
Third quarter 2024 key messages Organic net sales up 19.2% compared to third quarter 2023 driven by double-digit growth in all three regions. Pipeline continued to expand from second quarter 2024 driven by strong data center demand, including AI, across all regions. Strong third quarter trailing twe
Slide 4: Customer demand, operations, and procurement update
Customer demand, operations, and procurement update Customer demand Operations and Procurement update • Strong third quarter trailing twelve-month (TTM) orders growth of ~37% • Increased capacity and footprint: opened new 215,000 sq. ft. facility in vs. same prior year period and consistent with ~37
Slide 5: Vertiv comprehensive portfolio and leadership enables the data center of the future
Vertiv comprehensive portfolio and leadership enables the data center of the future where Liquid and Air coexist, and heat rejection is essential Covering Critical Digital Infrastructure End-to-End Thermal Market Outlook: Liquid & Air Coexist Vertiv’s portfolio and scale are ready to deploy and is P
Slide 6: Vertiv liquid cooling technologies, unique service and scale capabilities
Vertiv liquid cooling technologies, unique service and scale capabilities Vertiv Product Leadership Is… Additional Vertiv Differentiators Are… Enabling accelerated compute with future-ready designs • GLOBAL PRODUCTION SCALE for new builds, retrofit, and architecture flexibility DIRECT-TO-CHIP COOLIN
Slide 7: Leadership with trailblazing technology and future-ready innovation
Leadership with trailblazing technology and future-ready innovation Vertiv Co-develops with NVIDIA1 Vertiv Enables the Future with Design Adaptability The Complete Power and Cooling Blueprint, Enabling Introducing the Vertiv CoolPhase CDU to streamline the NVIDIA GB200 NVL72 Platform Deployment the
Slide 8: Third quarter 2024 financial results
Third quarter 2024 financial results $Millions; deltas to midpoint of guidance range . Diluted EPS 2,074 417 20.1% $0.76 336 1,743 17.0% 296 $0.52 221 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 • • + + • + + • − + − • • − Strong Q3 performance driven by organic s
Slide 9: Third quarter 2024 financial results
Third quarter 2024 financial results $Millions • • • • • Adjusted operating • profit $207 $303 $50 $44 $77 $114 Q3 2024 Earnings Note: see “Non-GAAP Financial Measures” beginning on slide 16 of the Appendix. 9
Slide 10: Fourth quarter 2024 financial guidance
Fourth quarter 2024 financial guidance $Millions; deltas to midpoint of guidance range 2,140 437 20.4% $0.82 305 1,865 17.7% 227 330 $0.56 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 • • + + • + − • − + + • • − + Expecting fourth quarter financial results to build
Slide 11: Full year 2024 financial guidance
Full year 2024 financial guidance $Millions; midpoint of guidance range unless otherwise specified 7,805 1,485 19.0% $2.68 1,000 6,863 15.3% 778 1,054 $1.77 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 • • + + • + ‒ • − • + • − Raising full-year guidance on higher
Slide 12: Early thoughts on 2025
Early thoughts on 2025 Data center segment expected to accelerate across the globe supported by continued strong AI-driven demand Based upon backlog and visibility into strong pipeline, 2025 organic sales growth expected to accelerate from 14% in 2024 Supply chain dynamics expected to remain stable
Slide 13: 2024 Investor Event – Monday, November 18th in Atlanta, GA
2024 Investor Event – Monday, November 18th in Atlanta, GA Vertiv’s vision and strategic direction Market update Financial overview, including updated multi-year outlook Q&A with leadership team Reception with leadership team Technology Showcase at SC24 Vertiv Booth (Tuesday, November 19) Q3 2024 Ea
Slide 14: Key takeaways
Key takeaways 20.1% adjusted operating margin in third quarter exceeded 20% long-term target shared at Nov 2023 Investor Event TTM orders up 37%1 vs. prior year with book-to-bill at ~1.1x. Strong sales pipeline supports near-term and 2025+ growth. Raised fourth quarter 2024 net sales guidance to ~$2
Slide 15: Non-GAAP financial reconciliations
Non-GAAP financial reconciliations 15
Slide 16: Non-GAAP financial measures – third quarter results
Non-GAAP financial measures – third quarter results Reconciliation of segment operating profit (loss) to operating profit (loss) and adjusted Reconciliation from operating profit (loss) margin to adjusted operating profit (loss) margin operating profit (loss) ($M | 3rd QUARTER) 3Q24 3Q23 D ($M | 3rd
Slide 17: Non-GAAP financial measures – third quarter results (cont.)
Non-GAAP financial measures – third quarter results (cont.) Reconciliation of diluted EPS to adjusted diluted EPS and operating profit (loss) to adjusted operating profit (loss) Income Operating profit Interest Change in tax expense ($M, except EPS | 3rd QUARTER 2024) (loss) expense, net warrant lia
Slide 18: Non-GAAP financial measures – fourth quarter 2024 guidance
Non-GAAP financial measures – fourth quarter 2024 guidance Reconciliation of diluted EPS to adjusted diluted EPS and operating profit (loss) to adjusted operating profit (loss) Operating profit Interest Income tax Net income ($M, except EPS | 4th QUARTER 2024) (loss) expense, net expense (loss) Dilu
Slide 19: Non-GAAP financial measures – FY 2024 guidance
Non-GAAP financial measures – FY 2024 guidance At midpoint of guidance range Reconciliation of diluted EPS to adjusted diluted EPS and operating profit (loss) to adjusted operating profit (loss) Operating profit Interest Change in Income ($M, except EPS | FULL YEAR 2024) (loss) expense, net warrant
Slide 20: Non-GAAP financial measures: Q1 2023 – Q3 2024 results
Non-GAAP financial measures: Q1 2023 – Q3 2024 results Net Sales(1) ($M) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 Americas $862.3 $959.4 $1,003.2 $1,019.6 $3,844.5 $925.0 $1,121.1 $1,198.6 Asia Pacific 313.0 395.8 388.6 430.4 1,527.8 332.3 409.1 432.4 Europe, Middle East & Africa 345.8 378.9 350.8 41
Slide 21: Non-GAAP financial measures: Q1 2023 – Q3 2024 results
Non-GAAP financial measures: Q1 2023 – Q3 2024 results Reconciliation from operating profit (loss) margin to adjusted operating profit (loss) margin ($M) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 Net sales $1,521.1 $1,734.1 $1,742.6 $1,865.4 $6,863.2 $1,639.1 $1,952.8 $2,073.5 Operating profit 130.3 2
Slide 22: Non-GAAP financial measures: Q1 2023 – Q3 2024 results
Non-GAAP financial measures: Q1 2023 – Q3 2024 results Reconciliation of segment operating profit (loss) to operating profit (loss) and adjusted operating profit (loss) ($M) 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 Americas $145.8 $191.7 $206.5 $218.4 $762.4 $187.8 $285.1 $303.4 Asia Pacific 16.6 38.
Slide 23: Non-GAAP financial measures – organic net sales growth reconciliation
Non-GAAP financial measures – organic net sales growth reconciliation Reconciliation of change in net sales to organic change in net sales Organic Net Sales Δ FX Δ growth Organic Δ % (1) ($M | 3rd QUARTER 2024) Americas: $195.4 $10.7 $206.1 20.5% Asia Pacific: 43.8 (3.3) 40.5 10.4% Europe, Middle Ea
Slide 24: Share count assumptions
Share count assumptions Millions of shares unless otherwise specified GAAP 1Q 2Q 3Q 4Q FY Basic 379 375 375 378 377 Potential Dilutive Stock Options & N/A 9 9 10 10 RSUs Diluted 379 384 384 388 387 Pro-forma diluted shares* 389 * All potentially dilutive equity instruments for the first quarter 2024
Slide 25: FX assumptions and 2Q product/services margin
FX assumptions and 2Q product/services margin $Millions unless otherwise specified Reclassification of 2Q product/services margin: 4Q24 Assumption After additional review of certain cost of sales allocations between products and services in the second quarter, we have revised the CNY / USD 7.01 prev
Slide 26: Additional Tax Information
Additional Tax Information • The third quarter 2024 included an expense (~$67M) related to a change in Effective Tax Rate (ETR) Reconciliation fair value of warrants. Although this expense is not considered in calculating GAAP tax expense for a full year, for individual quarters (per FIN18) it is co
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