Cognizant Technology Solutions Corporation · NASDAQ:CTSH
Cognizant Technology Solutions — Q3 2022 Earnings Presentation
18 slides from Cognizant Technology Solutions's earnings presentation, Nov 2, 2022
Slide 1: Third Quarter 2022 Financial Results and Highlights
Exhibit 99.3 Third Quarter 2022 Financial Results and Highlights November 2, 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: Q3 2022
Results Summary: Q3 2022 Revenue GAAP and Adjusted Operating Margin1 1 Up 2.4% Y/Y as reported, or 5.6% Y/Y in constant currency 16.4% 16.4% $4,857M $4,744M 15.8% 15.4% Q3 '21 Q3 '22 Q3 '21 Q3 '22 Q3 '21 Q3 '22 GAAP Operating Margin Adjusted Operating Margin1 Diluted Earnings Per Share (EPS) Cash Fl
Slide 4: Revenue, Operating Margin and EPS
Revenue, Operating Margin and EPS $ in millions except per share amounts $4,906 $4,857 $4,777 $4,826 $4,744 $4,585 $4,401 $4,225 $4,243 $4,184 $4,000 $1.10 $1.08 $1.14 $1.17 $0.96 $0.97 $0.97 $0.99 $1.06 $0.82 $0.67 1 1 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Rev
Slide 5: Revenue Performance: Q3 2022
Revenue Performance: Q3 2022 Segments Geography $ in millions $ in millions Rest of World Communications, Media & +2.3% Y/Y Technology +9.3% Y/Y CC +6.0% Y/Y +10.4% Y/Y CC Europe1 $352 $783 Financial Services1 (3.3%) Y/Y (1.5%) Y/Y +10.3% Y/Y CC +1.6% Y/Y CC $1,521 $884 Products & Resources +3.7% Y/
Slide 6: Financial Services
Financial Services Revenue1 Q3 2022 Geography $ in millions $ in millions $1,544 $1,547 $1,542 Rest of World $1,528 $1,521 $1,502 +1.4% Y/Y $1,451 $1,469 $1,458 +7.6% Y/Y CC $1,396 $1,305 Europe1 $144 (11.0%) Y/Y +0.4% Y/Y CC $291 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22
Slide 7: Health Sciences
Health Sciences Revenue Q3 2022 Geography $ in millions $ in millions Rest of World $1,392 $1,408 $1,405 $1,354 $1,370 +10.0% Y/Y $1,325 $33 +22.6% Y/Y CC $1,270 $1,288 $1,231 Europe $1,194 $1,157 (1.2%) Y/Y +10.5% Y/Y CC $160 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3
Slide 8: Products & Resources
Products & Resources Revenue Q3 2022 Geography $ in millions $ in millions $1,130 $1,140 $1,148 $1,107 $1,116 Rest of World $1,055 +9.1% Y/Y $998 +14.2% Y/Y CC $954 $948 $927 $96 $867 Europe +1.1% Y/Y +16.9% Y/Y CC $273 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 $77
Slide 9: Communications, Media & Technology
Communications, Media & Technology Revenue Q3 2022 Geography $ in millions $ in millions $816 Rest of World $776 $783 (6.0%) Y/Y $739 $744 +2.5% Y/Y CC $703 $661 $657 $626 $79 $616 Europe $580 +3.2% Y/Y +19.6% Y/Y CC $160 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 $
Slide 10: Trailing Twelve Month Bookings
Trailing Twelve Month Bookings1 $ in billions $23.1 $23.4 $23.2 $23.1 $21.7 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Bookings in the quarter declined 2% year-over-year. This resulted in trailing twelve month bookings of $23.1 billion, which represented a book-to-bill of 1.2x. 1 See “About Non-GAAP Financi
Slide 11: Employee Metrics
Employee Metrics Headcount in thousands 340.4 341.3 349.4 318.4 330.6 291.7 289.5 296.5 301.2 281.2 283.1 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Additional Employee Metrics Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Trailing 12-
Slide 12: Cash Flow, Balance Sheet & Capital Allocation
Cash Flow, Balance Sheet & Capital Allocation Annual Quarterly $ in millions $ in millions Share Repurchases $1,621 Acquisitions $771 $82 $1,189 $474 $318 $315 Dividends $1,123 $970 $129 $255 $255 $57 $480 $509 $552 $127 $127 $143 $141 $141 FY 2020 FY 2021 Trailing 12-Months Q3 '21 Q4 '21 Q1 '22 Q2
Slide 13: FY 2022 Guidance
FY 2022 Guidance1 FY 2022 Guidance Assumptions ~$19.3B Revenue Includes ~100 bps of inorganic contribution ~4.5%Y/Y or ~7.0%Y/Y CC 20bps of expansion vs. FY 2021 Adjusted Operating Margin2 15.6% Interest Income ~$50M Adjusted effective tax rate2 24%-25% Share Count ~519M Adjusted Diluted EPS2 $4.43-
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 Non-GAAP Financial Measures 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
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, Jun 30, Sep 30, Dec 31, Full Year 2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2021 2022 GAA
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 that resolved the consolidated putative securities class action against us and certain of our former officers. The settlement agre
Slide 18: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures (f) Presented below are the tax impacts of each of our non-GAAP adjustments to pre-tax income: 2020 2021 2022 FY Adjusted Effective Tax Rate Reconciliation Guidance Three months ended: Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 21 FY 2021 FY 2022 31 30
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