Slide 1: Keysight Technologies Q4 Fiscal Year 2024 Results
Keysight Technologies Q4 Fiscal Year 2024 Results November 19, 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: Q4'24 & FY'24 Highlights
Q4’24 & FY'24 Highlights • Fourth quarter revenue and earnings per share exceeded the high end of guidance. • Expenses were well-managed; SG&A declined 3% y/y in Q4, and declined 7% y/y for the full year Delivered a solid finish to the year and fourth- when excluding acquisitions reflecting operati
Slide 4: Q4'24 Non-GAAP Financial Highlights
Q4’24 Non-GAAP Financial Highlights Orders Revenue Operating Margin EPS $1.345B $1.287B 25.8% $1.65 1%y/y (-1%core*) -2%y/y (-5% core*) -350 basis points y/y -17%y/y * Core growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months, reconciliations included. Re
Slide 5: Revenue by Segment & by Region
Revenue by Segment & by Region Q4'24 Revenue: $1.287B 5
Slide 6: Revenue Trend by Region
Revenue Trend by Region -4% y/y (-5% core*): Revenue decline in +1% y/y (-8% core*): Revenue growth in -1% y/y (-3% core*): Revenue decline in EI ADG and CC partially offset by growth in EI. ADG and CC partly offset by decline in EI. and ADG partially offset by growth in CC. Key: * Core revenue grow
Slide 7: Q4'24 Communications Solutions Group Highlights
Q4’24 Communications Solutions Group Highlights Revenue • Gross margin of 67% reflecting strong solutions differentiation. $894M • Commercial Communications: Revenue grew year-over-year and on a sequential —% y/y (-2% core*) basis. Orders grew mid-single-digits with growth in both wireline and wirel
Slide 8: Q4'24 Electronic Industrial Solutions Group Highlights
Q4’24 Electronic Industrial Solutions Group Highlights Revenue • Automotive: Flat revenue while orders declined y/y reflecting cautious customer spending due $393M to slowing EV sales and battery oversupply. Production-related demand was relatively stable. • Semiconductor: Robust demand drove strong
Slide 9: Q4'24 Revenue By End Market
Q4’24 Revenue By End Market End Market Revenue YoY % Commercial $591M +4% Communications Aerospace, Defense & $303M -6% Government Electronic Industrial $393M -6% Solutions Total $1,287M -2% 9
Slide 10: FY24 Non-GAAP Highlights & Annual Trend
FY24 Non-GAAP Highlights & Annual Trend Orders Revenue Operating Margin EPS $5.033B $4.979B 25.7% $6.27 3% CAGR 4% CAGR +40 basis points 7% CAGR 5-Year annual trend represents 2020-2024. Reconciliations to closest GAAP equivalent provided for all non-GAAP measures.For prior periods, please refer to
Slide 11: Guidance and Financial Considerations
Guidance and Financial Considerations Q1'25 Guidance Revenue $1.265B – $1.285B Non-GAAP Earnings per share $1.65 – $1.71 FY25 Financial Considerations • Interest expense of ~$70M at current debt levels. • Non-GAAP tax rate of 14%. • Guidance assumes Q1 weighted average diluted share count of approxi
Slide 12: Reconciliations
WW KEYSIGHT Reconciliations
Slide 13: Operating Margin Reconciliation
OPERATING MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended Year ended October 31, October 31, 2024 2023 2024 2023 Income from operations, as reported $ 230 $ 317 $ 833 $ 1,358 Amortization of acquisition-related balances 33 19 139 90 Share-based comp
Slide 14: Reconciliation of Core Operating Margin
RECONCILIATION OF CORE OPERATING MARGIN (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended Year ended October 31, October 31, 2024 2023 2024 2023 Non-GAAP income from operations $ 332 $ 384 $ 1,278 $ 1,649 Less: Operating profit (loss) from acquisitions or divestitures (9)
Slide 15: Gross Margin Reconciliation
GROSS MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended Year ended October 31, October 31, 2024 2023 2024 2023 Gross Profit, as reported $ 802 $ 844 $ 3,133 $ 3,532 Amortization of acquisition-related balances 19 5 70 34 Share-based compensation 5 5 2
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 Year ended October 31, October 31, 2024 2023 2024 2023 Net Diluted Net Diluted Diluted Diluted Income EPS (a) Income EPS Net Income EPS Net Income EPS Net income (loss), as repor
Slide 17: Reconciliation of Core Revenue
RECONCILIATION OF CORE REVENUE (In millions) (Unaudited) PRELIMINARY Year-over-year Year-over-year Percent Percent Q4'24 Q4'23 Inc/(Dec) FY24 FY23 Inc/(Dec) Revenue $ 1,287 $ 1,311 (2)% $ 4,979 $ 5,464 (9)% Adjustments: Revenue from acquisitions or divestitures (34) — (172) — Currency impacts (4) —
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 Q4'24 Q4'23 YoY % Chg. Q4'24 Q4'24 Q4'24 Q4'23 YoY % Chg. Communications Solutions Group $
Slide 19: Revenue by End Markets
REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Percent Q4'24 Q4'23 Inc/(Dec) FY24 FY23 Inc/(Dec) Aerospace, Defense and Government $ 303 $ 323 (6)% $ 1,149 $ 1,250 (8)% Commercial Communications 591 568 4% $ 2,271 $ 2,435 (7)% Electronic Industrial 393 420 (6)% $ 1,559 $ 1,779
Slide 20: Free Cash Flow
FREE CASH FLOW (In millions) (Unaudited) PRELIMINARY Three months ended Year ended October 31, October 31, 2024 2023 2024 2023 Net cash provided by operating activities $ 359 $ 378 $ 1,052 $ 1,408 Adjustments: Investments in property, plant and equipment (38) (39) (154) (197) Proceeds from governmen
Slide 21: Selling, General & Administrative Expenses Reconciliation
SELLING, GENERAL & ADMINISTRATIVE EXPENSES RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Year-ended October 31, 2024 2023 Selling, general & administrative expenses, as reported $ 1,395 $ 1,307 Amortization of acquisition-related balances (69) (56) Share-based compensation
Slide 22: 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