20 slides from Cognizant Technology Solutions's earnings presentation, Feb 5, 2025
Slide 1: Fourth Quarter 2024 Financial Results and Highlights
Exhibit 99.3 Fourth Quarter 2024 Financial Results and Highlights February 5, 2025 © 2025 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 is necessarily subject to risks, uncertainties and assumpt
Slide 3: Results Summary: Q4 2024
Results Summary: Q4 2024 Revenue GAAP and Adjusted Operating Margin1 Increase of 6.8% Y/Y as reported, and an increase of 6.7% Y/Y in constant currency1,2 16.1% 15.7% $5,082M 15.2% 14.8% $4,758M Q4 '23 Q4 '24 Q4 '23 Q4 '24 Q4 '23 Q4 '24 GAAP Operating Margin Adjusted Operating Margin1 Diluted Earnin
Slide 4: Results Summary: FY 2024
Results Summary: FY 2024 Revenue GAAP and Adjusted Operating Margin1 Increase of 2.0% Y/Y as reported, and an increase of 1.9% Y/Y in constant currency1,2 15.3% 15.1% $19,736M 14.7% $19,353M 13.9% 2023 2024 2023 2024 2023 2024 GAAP Operating Margin Adjusted Operating Margin1 Diluted Earnings Per Sha
Slide 5: Revenue, Operating Margin and EPS
Revenue, Operating Margin and EPS $ in millions except per share amounts $5,044 $5,082 $4,886 $4,897 $4,850 $4,812 $4,758 $4,760 $1.25 $1.21 $1.16 $1.18 $1.17 $1.11 $1.10 $1.12 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Revenue Adjusted Diluted EPS Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2
Slide 6: Revenue Performance: Q4 2024
Revenue Performance: Q4 2024 Segments Geography $ in millions $ in millions Health Sciences Financial Services Europe +10.4% Y/Y and +2.9% Y/Y Y/Y CC $1,541 $1,435 +2.3% Y/Y +2.8% Y/Y CC $939 +1.3% Y/Y CC North America1 +8.3% Y/Y $3,822 +8.4% Y/Y CC $321 Rest of World $811 +3.5% Y/Y Products Communi
Slide 7: Revenue Performance: FY 2024
Revenue Performance: FY 2024 Segments Geography $ in millions $ in millions Health Sciences Financial Services Europe +4.5% Y/Y and (1.0%) Y/Y (0.9%) Y/Y Y/Y CC $5,932 $5,753 (2.1%) Y/Y CC (1.1%) Y/Y CC $3,759 North America1 +3.0% Y/Y $14,698 +3.1% Y/Y CC $1,279 Rest of World $3,269 (1.3%) Y/Y Produ
Slide 8: Health Sciences
Health Sciences Revenue Q4 2024 Geography $ in millions $ in millions $1,541 $1,514 $1,461 $1,433 $1,440 $1,405 $1,416 $1,396 Europe +9.0% Y/Y +8.7% Y/Y CC North America $194 +10.6% Y/Y and $1,316 Y/Y CC $31 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Rest of World +10.7% Y/Y Change in R
Slide 9: Financial Services
Financial Services Revenue Q4 2024 Geography $ in millions $ in millions $1,476 $1,475 $1,486 $1,463 $1,447 $1,435 Europe $1,395 $1,385 +4.5% Y/Y $300 +3.5% Y/Y CC North America +2.0% Y/Y +2.2% Y/Y CC $1,011 Rest of World $124 +6.0% Y/Y +6.3% Y/Y CC Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q
Slide 10: Products & Resources
Products & Resources Revenue Q4 2024 Geography $ in millions $ in millions $1,295 $1,228 $1,177 $1,170 $1,163 Europe $1,118 $1,133 $1,126 +8.7% Y/Y +7.7% Y/Y CC $301 North America $910 +14.3% Y/Y +14.4% Y/Y CC $84 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Rest of World (6.7%) Y/Y (5.4%
Slide 11: Communications, Media & Technology
Communications, Media & Technology Revenue Q4 2024 Geography $ in millions $ in millions $847 $826 $816 $816 $806 $804 $811 $785 Europe (18.2%) Y/Y (19.7%) Y/Y CC $144 North America +5.8% Y/Y and $585 Y/Y CC $82 Rest of World +9.3% Y/Y Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 +8.0% Y/
Slide 12: Trailing Twelve Month Bookings
Trailing Twelve Month Bookings1 $ in billions $27.1 $26.3 $26.2 $26.2 $25.9 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Trailing twelve month bookings of $27.1 billion increased 3% year-over-year and represented a book-to-bill of 1.4x Q4 2024 bookings increased 11% year-over-year 1 See “About Non-GAAP Financ
Slide 13: Employee Metrics
Employee Metrics Headcount in thousands 351.5 345.6 346.6 347.7 344.4 336.3 340.1 336.8 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Additional Employee Metrics Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Trailing 12-Month Voluntary Attrition - Tech Services 23.1% 19.9% 16.2%
Slide 14: Cash Flow, Balance Sheet & Capital Allocation
Cash Flow, Balance Sheet & Capital Allocation Annual Quarterly $ in millions $ in millions $605 $242 Share Repurchases $1,422 $1,064 $1,615 $1,194 Acquisitions $133 $367 $409 $313 $421 Dividends $76 $154 $564 $591 $600 $146 $151 $150 $149 $150 FY 2022 FY 2023 FY 2024 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4 '
Slide 15: Full-year 2025 and Q1 2025 Guidance
Full-year 2025 and Q1 2025 Guidance1 2025 Guidance ~$20.3 to ~$20.8B Revenue 2.6% to 5.1% Y/Y or 3.5% to 6.0% Y/Y CC Adjusted Operating Margin2 15.5% to 15.7% Adjusted effective tax rate2 24% to 25% Share Count 493M Adjusted Diluted EPS2 $4.90 to $5.06 Q1 2025 Guidance ~$5.0 to ~$5.1B Revenue 5.6% t
Slide 16: APPENDIX: About Non-GAAP Financial Measures and Performance Metrics
APPENDIX: About Non-GAAP Financial Measures and Performance Metrics
Slide 17: 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 18: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures (in millions, except per share amounts) Three Months Ended: Full Year: Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, Dec 31, Dec 31, Guidance Full Year 2023 2023 2023 2023 2024 2024 2024 2024 2023 2024 2025(1) GAAP income from operatio
Slide 19: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Notes: (a) NextGen charges for the three months ended December 31, 2024 include $30 million of employee separation costs, $7 million of facility exit costs and $12 million of third party and other costs. NextGen charges for the year ended December 31, 2
Slide 20: Reconciliations of Non-GAAP Financial Measures
Reconciliations of Non-GAAP Financial Measures Reconciliation of free cash flow Three Months Ended Full Year Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31, (in millions) 2023 2023 2023 2023 2024 2024 2024 2024 2023 2024 Net cash provided by operating activities $ 729 $ 36 $ 828 $ 73