Slide 1: Keysight Technologies Q2 Fiscal Year 2024 Results
Keysight Technologies Q2 Fiscal Year 2024 Results May 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: Q2'24 Highlights
Q2’24 Highlights • Second quarter revenue of $1.2B and earnings per share of $1.41 exceeded the high end of the guidance range. Results demonstrated strong execution in a • Selling, General and Administrative expenses were well-managed and declined year-over-year by 1 market environment that was
Slide 4: Q2'24 Non-GAAP Financial Highlights
Q2’24 Non-GAAP Financial Highlights Orders Revenue Operating Margin EPS $1.219B $1.216B 24.2% $1.41 -8%y/y (-9%core*) -13%y/y (-14% core*) -620 basis points y/y -34%y/y * Core growth excludes the impact of currency, acquisitions or divestitures closed in last twelve months. 4 Reconciliations to clos
Slide 5: Revenue by Segment & by Region
Revenue by Segment & by Region Q2'24 Revenue: $1.216B 5
Slide 6: Revenue Trend by Region
Revenue Trend by Region -5% y/y (-6% core*): Revenue decline in -1% y/y (-8% core*): Revenue declines in -23% y/y (-22% core*): Revenue declines CC, growth in ADG and EI. ADG; CC and EI flat. in EI, ADG and CC. Key: * Core revenue growth excludes the impact of currency, acquisitions or divestitures
Slide 7: Q2'24 Communications Solutions Group Highlights
Q2’24 Communications Solutions Group Highlights • Strong gross margin of 68.0% despite y/y revenue decline Revenue • Commercial Communications: Revenue declined vs. strong compare, while $840M orders grew year-over-year and sequentially driven by AI-driven data center -10% y/y (-11% core*) network
Slide 8: Q2'24 Electronic Industrial Solutions Group Highlights
Q2’24 Electronic Industrial Solutions Group Highlights Revenue • Automotive: Revenue was sequentially stable excluding acquisitions; the European EV funnel remains steady with a second key win this quarter. $376M • Semiconductor: Large industry fab projects continue to be delayed into late -17% y/y
Slide 9: Q2'24 Revenue By End Market
Q2’24 Revenue By End Market End Market Revenue YoY % Commercial $563M -10% Communications Aerospace, Defense & $277M -11% Government Electronic Industrial $376M -17% Solutions Total $1,216M -13% 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 Q3'24 Guidance Revenue $1.180B – $1.200B Non-GAAP Earnings per share $1.30 – $1.36 Q3'24 Financial Considerations • Interest Income, Interest Expense and Other Income/Expense: ~$3-5M net income per quarter • Non-GAAP tax rate of 17% • Guidance assumes Q3 weighte
Slide 12: Investor Resources
Investor Resources CSR Reports Quick Links 2023 CSR Report 2023 TCFD Report Why Keysight Recent Investor Presentations and Webcasts The Keysight Leadership Model Corporate Social Responsibility Investor Day March 2023 Videos (single-click access to each executive’s presentation) Company Overview and
Slide 13: Reconciliations
WW KEYSIGHT Reconciliations
Slide 14: Operating Margin Reconciliation
OPERATING MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended Six months ended April 30, April 30, 2024 2023 2024 2023 Income from operations, as reported $ 177 $ 354 $ 398 $ 676 Amortization of acquisition-related balances 37 25 75 48 Share-based compe
Slide 15: Reconciliation of Core Operating Margin
RECONCILIATION OF CORE OPERATING MARGIN (In millions) (Unaudited) PRELIMINARY Q2'24 Non-GAAP income from operations $ 294 Adjustments: Operating Profit from acquisitions or divestitures 6 Currency impacts 4 Core Income from operations $ 304 Core Revenue $ 1,197 Core Operating margin, % 25 % Please r
Slide 16: Gross Margin Reconciliation
GROSS MARGIN RECONCILIATION (In millions, except where noted) (Unaudited) PRELIMINARY Three months ended Six months ended April 30, April 30, 2024 2023 2024 2023 Gross Profit, as reported $ 763 $ 909 $ 1,576 $ 1,792 Amortization of acquisition-related balances 17 11 34 20 Share-based compensation 7
Slide 17: Net Income and Diluted EPS Reconciliation
NET INCOME AND DILUTED EPS RECONCILIATION (In millions, except per share data) (Unaudited) PRELIMINARY Three months ended Six months ended April 30, April 30, 2024 2023 2024 2023 Net Diluted Net Diluted Net Diluted Net Diluted Income EPS Income EPS Income EPS Income EPS GAAP Net income $ 126 $ 0.72
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 Q2'24 Q2'23 YoY % Chg. Q2'24 Q2'24 Q2'24 Q2'23 YoY % Chg. Communications Solutions Group $
Slide 19: Revenue by End Markets
REVENUE BY END MARKETS (In millions) (Unaudited) PRELIMINARY Percent Q2'24 Q2'23 Inc/(Dec) Aerospace, Defense and Government $ 277 $ 310 (11)% Commercial Communications 563 627 (10)% Electronic Industrial 376 453 (17)% Total Revenue $ 1,216 $ 1,390 (13)% 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 Q2'24 Q2'23 Inc/(Dec) Selling, general & administrative expenses, as reported $ 361 $ 337 Amortization of acquisition-related balances (20) (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