Slide 1: Q4 Fiscal Year 2024 Conference Call
Q4 Fiscal Year 2024 Conference Call August 14, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains projections and other forward-looking statements regarding future events or the future financial performance of Cisco, including future operating results. These projections and statements are only predictions. Actual events or results may differ
Slide 3: Business Momentum & Key Trends
Business Momentum & Key Trends © 2024 Cisco and/or its affiliates. All rights reserved. Cisco Confidential -
Slide 4: Q4 FY 2024 Summary
Q4 FY 2024 Summary • Strong growth in product orders across geographies, customer markets and products, indicating inventory digestion largely completed as expected; starting to see normalization of demand patterns • Product order growth up 14% y/y; up 6% y/y excluding Splunk • Revenue and Non-GAAP
Slide 5: Select $100M+ Platform Sales
Q4 FY 2024 | Select $100M+ Platform Sales • Leading Global Logistics Company • Cisco’s technology platforms will enable the automation of network operations for their cutting-edge innovations like AI-powered robotics and unmatched supply chain visibility. • Cisco platforms: Switching (campus and dat
Slide 6: Financial Overview
Financial Overview © 2024 Cisco and/or its affiliates. All rights reserved. Cisco Confidential -
Slide 7: Revenue and Total Gross Margin
Q4 FY 2024 Revenue and Total Gross Margin $M (except percentages) Revenue Total Gross Margin % Q4 FY’23 Q3 FY’24 Q4 FY’24 Q4 FY’23 Q3 FY’24 Q4 FY’24 Americas $9,075 $7,372 $8,068 65.0% 67.9% 67.7% EMEA 3,926 3,458 3,511 68.4% 69.6% 69.2% APJC 2,203 1,873 2,064 65.3% 67.4% 66.4% Geographic Total $15,
Slide 8: Revenue Highlights
Q4 FY 2024 Revenue Highlights $M Y/Y Category $M Y/Y without without Splunk Splunk Networking $6,804 (28%) $6,804 (28%) Security 1,787 81% 1,044 6% Collaboration 1,019 0% 1,019 0% Observability 248 41% 196 12% Services 3,784 6% 3,617 2% Total Cisco $13,642 (10%) $12,680 (17%) Amounts may not sum and
Slide 9: Annualized Recurring Revenue (ARR)
Q4 FY 2024 Annualized Recurring Revenue (ARR) $B (except percentages) $29.2 $29.6 +22% Y/Y $24.3 $13.7 $13.7 +4% Y/Y $13.2 $15.5 $15.8 +43% Y/Y $11.1 Q4 FY 2023 Q3 FY 2024 Q4 FY 2024 Product Services Amounts may not sum and percentages may not recalculate due to rounding. Annualized Recurring Revenu
Slide 10: Software Revenue
Q4 FY 2024 Software Revenue $B (except percentages) 85% 91% 92% $5.3 +15% Y/Y $4.6 $4.5 + 17% Y/Y $4.9 +25% Y/Y + 1% Y/Y $3.9 $4.1 $0.7 $0.4 $0.4 (42%) Y/Y Q4 FY 2023 Q3 FY 2024 Q4 FY 2024 Perpetual Software Subscription Software % of Software from Subscriptions © 2024 Cisco and/or its affiliates. A
Slide 11: Subscription Revenue
Q4 FY 2024 Subscription Revenue $B (except percentages) 9.0 60% 8.0 $7.7 +17% Y/Y $6.9 40% 7.0 $6.6 6.0 20% $4.3 5.0 $3.5 +27% Y/Y $3.4 0% 4.0 3.0 -20% 2.0 $3.2 $3.3 $3.4 +6% Y/Y -40% 1.0 - -60% Q4 FY 2023 Q3 FY 2024 Q4 FY 2024 Services Subscription Product Subscription Amounts may not sum and perce
Slide 12: Remaining Performance Obligations
Q4 FY 2024 Remaining Performance Obligations $B (except percentages) $41.0 +18% Y/Y $38.8 $34.9 $20.2 $18.7 +19% Y/Y Product RPO up 27% Y/Y $17.0 Services RPO up 10% Y/Y $17.9 $20.1 $20.9 +17% Y/Y Q4 FY 2023 Q3 FY 2024 Q4 FY 2024 Short Term RPO Long Term RPO Amounts may not sum and percentages may n
Slide 13: Income Statement Impact from Splunk
Q4 FY 2024 Income Statement Impact from Splunk Q4 FY’24 Q4 FY’24 $M (except percentages & earnings per share) without Splunk Product Orders Year/Year Growth 14% 6% Revenue $13,642 $12,680 Product $9,858 $9,063 Services $3,784 $3,617 Earnings per Share (diluted) (1) Non-GAAP $0.87 $0.91 (1) Earnings
Slide 14: Software & Recurring Metrics
Q4 FY 2024 Software & Recurring Metrics Q4 FY’24 Q4 FY’24 $B (except percentages) without Splunk Total Subscription Revenue $7.7 $6.7 Year/Year Change 17% 2% Subscriptions as % of Total Revenue 56% 53% Total ARR $29.6 $25.3 Year/Year Change 22% 4% Product ARR $15.8 $12.0 Year/Year Change 43% 9% Soft
Slide 15: Product Orders
Q4 FY 2024 Product Orders Y/Y Y/Y without Splunk Total Product Orders 14% 6% Geographic Segment Americas 15% 6% EMEA 12% 6% APJC 16% 8% Customer Market Enterprise 13% 3% Public Sector 20% 15% Service Provider & Cloud 5% 2% © 2024 Cisco and/or its affiliates. All rights reserved. Cisco Confidential -
Slide 16: GAAP Income Statement Highlights
Q4 FY 2024 GAAP Income Statement Highlights $M (except per-share amounts and percentages) Q4 FY 2023 Q3 FY 2024 Q4 FY 2024 Revenue $15,203 $12,702 $13,642 Year/Year Change 16% (13%) (10%) Product $11,650 $9,024 $9,858 Services $3,553 $3,678 $3,784 Gross Margin 64.1% 65.1% 64.4% Product Gross Margin
Slide 17: Non-GAAP Income Statement Highlights
Q4 FY 2024 Non-GAAP Income Statement Highlights $M (except per-share amounts and percentages) Q4 FY 2023 Q3 FY 2024 Q4 FY 2024 Revenue $15,203 $12,702 $13,642 Year/Year Change 16% (13%) (10%) Product $11,650 $9,024 $9,858 Services $3,553 $3,678 $3,784 Gross Margin 65.9% 68.3% 67.9% Product Gross Mar
Slide 18: Key Financial Measures
Q4 FY 2024 Key Financial Measures $M Q4 FY 2023 Q3 FY 2024 Q4 FY 2024 Cash, Cash Equivalents and Investments $26,146 $18,770 $17,854 Operating Cash Flow $5,966 $3,971 $3,730 Accounts Receivable $5,854 $5,127 $6,685 Inventory $3,644 $3,118 $3,373 Total Debt $8,391 $31,993 $30,962 Deferred Revenue: $2
Slide 19: Capital Allocation
Capital Allocation Total Capital Allocation Q4 FY 2024 FY 2024 Share Repurchases ($M) $2,002 $5,764 Dividends Paid ($M) 1,606 6,384 Total ($M) $3,608 $12,148 Quarterly Dividend per Share $0.40 $1.58 Share Repurchases Q4 FY 2024 FY 2024 Amount Purchased ($M) $2,002 $5,764 Number of Shares (M) 43 117
Slide 20: FY 2024 GAAP Income Statement Highlights
FY 2024 GAAP Income Statement Highlights $M (except per-share amounts and percentages) FY 2023 FY 2024 Revenue $56,998 $53,803 Year/Year Change 11% (6%) Product $43,142 $39,253 Services $13,856 $14,550 Gross Margin 62.7% 64.7% Product Gross Margin 61.5% 63.5% Services Gross Margin 66.4% 68.1% Operat
Slide 21: FY 2024 Non-GAAP Income Statement Highlights
FY 2024 Non-GAAP Income Statement Highlights $M (except per-share amounts and percentages) FY 2023 FY 2024 Revenue $56,998 $53,803 Year/Year Change 11% (6%) Product $43,142 $39,253 Services $13,856 $14,550 Gross Margin 64.5% 67.5% Product Gross Margin 63.4% 66.4% Services Gross Margin 68.2% 70.4% Op
Slide 22: FY 2024 Subscription Revenue
FY 2024 Subscription Revenue $B (except percentages) 30.0 60% $27.4 +11% Y/Y $24.6 25.0 40% $22.4 $14.1 20.0 $11.9 +18% Y/Y 20% $10.0 15.0 0% 10.0 -20% +5% Y/Y $12.4 $12.7 $13.3 5.0 -40% - -60% FY 2022 FY 2023 FY 2024 Services Subscription Product Subscription Amounts may not sum and percentages may
Slide 23: Forward-Looking Statements
Forward-Looking Statements These presentation slides and the related conference call contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements r
Slide 24: ctfretfes
ctfretfes cisco The bridge to possible