Cognizant Technology Solutions Corporation · NASDAQ:CTSH
Cognizant Technology Solutions — Q1 2022 Earnings Presentation
18 slides from Cognizant Technology Solutions's earnings presentation, May 4, 2022
Slide 1: First Quarter 2022 Financial Results and Highlights
Exhibit 99.3 First Quarter 2022 Financial Results and Highlights May 4, 2022 © 2022 Cognizant
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 2022
Results Summary: Q1 2022 Revenue GAAP and Adjusted Operating Margin1 1 Up 9.7% Y/Y as reported, or 10.9% Y/Y in constant currency $4,826M 15.2% 15.0% $4,401M Q1 '21 Q1 '22 Q1 '21 Q1 '22 Diluted Earnings Per Share (EPS) Cash Flow $1.07 $1.08 $0.95 $0.97 $306M $181M $186M $93M Q1 '21 Q1 '22 Q1 '21 Q1
Slide 4: Revenue, Operating Margin and EPS
Revenue, Operating Margin and EPS $ in millions except per share amounts $4,777 $4,826 $4,744 $4,585 $4,401 $4,225 $4,243 $4,184 $4,000 $1.06 $1.10 $1.08 $0.96 $0.97 $0.97 $0.99 $0.82 $0.67 Q1 '20 Q2 '20 Q3 '20 Q4 '20 1 Q1 '21 Q2 '21 Q3 '21 Q4 '21 1 Q1 '22 Revenue Adjusted Diluted EPS Revenue Growth
Slide 5: Revenue Performance: Q1 2022
Revenue Performance: Q1 2022 Segments Geography $ in millions $ in millions Rest of World Communications, Media & +18.2% Y/Y Technology +22.1% Y/Y CC +18.1% Y/Y +19.9% Y/Y CC Europe1 $776 Financial Services1 $345 +10.4% Y/Y +4.8% Y/Y +15.6% Y/Y CC +6.0% Y/Y CC $1,528 $912 Products & Resources +13.2%
Slide 6: Financial Services
Financial Services Revenue Q1 2022 Geography $ in millions $ in millions $1,544 $1,547 Rest of World $1,528 $1,502 +9.4% Y/Y $1,451 $1,469 $1,458 +13.2% Y/Y CC $1,396 $140 $1,305 Europe1 (2.8%) Y/Y +1.1% Y/Y CC $308 Q1 '20 Q2 '20 Q3 '20 Q4 '20 1 Q1 '21 Q2 '21 Q3 '21 Q4 '21 1 Q1 '22 1 $1,080 Revenue
Slide 7: Healthcare
Healthcare Revenue Q1 2022 Geography $ in millions $ in millions $1,392 $1,354 $1,370 $1,325 Rest of World $1,270 $1,288 +13.8% Y/Y $1,231 $33 +18.2% Y/Y CC $1,194 $1,157 Europe +3.8% Y/Y +8.7% Y/Y CC $164 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 $1,195 Revenue growth Q1 '20 Q2
Slide 8: Products & Resources
Products & Resources Revenue Q1 2022 Geography $ in millions $ in millions $1,116 $1,130 $1,107 Rest of World $1,055 +29.6% Y/Y $998 +32.7% Y/Y CC $954 $948 $927 $92 $867 Europe +32.5% Y/Y +39.1% Y/Y CC $277 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 $761 Revenue growth Q1 '20 Q2
Slide 9: Communications, Media & Technology
Communications, Media & Technology Revenue Q1 2022 Geography $ in millions $ in millions $776 $744 Rest of World $739 +25.0% Y/Y $703 +29.8% Y/Y CC $661 $657 $626 $616 $80 $580 Europe +14.8% Y/Y +20.8% Y/Y CC $163 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 $533 Revenue growth Q1
Slide 10: Trailing Twelve Month Bookings
Trailing Twelve Month Bookings $ in billions $23.1 $23.4 $21.7 $20.0 $20.5 3/31/2021 6/30/2021 9/30/2021 * 12/31/2021 * 03/31/2022 * Q1 2022 quarterly bookings grew 4% year-over-year, which resulted in trailing twelve month bookings of $23.4 billion, which represented a book-to-bill of 1.2x *In Q4 ‘
Slide 11: Employee Metrics
Employee Metrics Headcount in thousands 330.6 340.4 318.4 291.7 289.5 296.5 301.2 281.2 283.1 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Additional Employee Metrics Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Trailing 12-Month Voluntary Attrition 17% 15% 13% 12
Slide 12: Cash Flow, Balance Sheet & Capital Allocation
Cash Flow, Balance Sheet & Capital Allocation Annual Quarterly $ in millions $ in millions Share $320 Repurchases $1,621 $240 Acquisitions $771 $82 $1,005 $474 $310 $348 Dividends $1,123 $970 $129 $255 $660 $57 $480 $509 $524 $128 $127 $127 $127 $143 FY 2020 FY 2021 Trailing 12-Months Q1 '21 Q2 '21
Slide 13: FY 2022 Guidance
FY 2022 Guidance1 FY 2021 FY 2022 Guidance Assumptions $19.8 to $20.2B Includes ~100bps of inorganic Revenue $18.5B contribution 7.2%-9.2% Y/Y or 9.0%-11.0% Y/Y CC 20-30bps of expansion vs. FY 2021 Adjusted Operating Margin2 15.4% 15.6% to 15.7% Interest Income $30M ~$25M Adjusted effective tax rate
Slide 14: APPENDIX: About Non-GAAP Financial Measures and Performance Metrics
APPENDIX: About Non-GAAP Financial Measures and Performance Metrics
Slide 15: About Non-GAAP Financial Measures and Performance Metrics
About Non-GAAP Financial Measures and Performance Metrics 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 Fr
Slide 16: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures (in millions, except per share amounts) Three Months Ended: Full Year Guidance Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Dec 31, Full Year 2020 2020 2020 2020 2021 2021 2021 2021 2022 2021 2022 GAAP income from operations $
Slide 17: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Notes: (a) During 2021, the parties to the consolidated putative securities class action suit filed a settlement agreement to resolve the consolidated putative securities class action against us and certain of our former officers. The settlement agreeme
Slide 18: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures (g) During the third quarter of 2020, after a thorough analysis of the impact of several changes in tax law on the cost of earnings repatriation and considering our strategic decision to increase our investments to accelerate growth in various internati
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