Q4 2024 Cisco Systems Inc Earnings Call Transcript
Key Points
- Cisco Systems Inc (CSCO) reported $13.6 billion in revenue for Q4, exceeding the high end of their guidance range.
- Annualized recurring revenue, remaining performance obligations, and subscription revenue all showed solid growth.
- The company returned $3.6 billion to shareholders in Q4 through share repurchases and cash dividends.
- Cisco Systems Inc (CSCO) saw double-digit product order growth across all geographies and strong performance in public sector demand.
- The integration of Splunk has begun to realize early synergies, enhancing Cisco's capabilities in security and observability solutions.
- Total product revenue was down 15% year-over-year, reflecting the final quarter of customer inventory issues.
- Networking revenue, Cisco's largest product category, was down 28% compared to Q4 2023.
- The restructuring plan will impact approximately 7% of Cisco's global workforce, with estimated pretax charges of up to $1 billion.
- Service provider and cloud customer demand remained muted overall, despite some strength in EMEA.
- The interest impact from financing the Splunk acquisition negatively affected non-GAAP earnings per share for the quarter.
(technical difficulty) Fourth Quarter and Fiscal Year 2024 financial results conference call. At the request of Cisco, today's conference is being recorded. If you have any objections, you may disconnect. Now I would like to introduce Sami Badri, Head of Investor Relations. Sir, you may begin Mr. Sami Badri, Cisco's Head of Investor Relations, and I'm joined by Chuck Robbins, Chair and CEO, and Scott Herren, our CFO. By now you should I've seen our earnings press release.
A corresponding webcast with slides, including supplemental information, will be available on our website in the Investor Relations section following the call income statements. Full GAAP to non-GAAP reconciliation information, balance sheets, cash flow statements and other financial information can also be found in the Financial Information section of our Investor Relations website. Throughout this conference call, we will be referencing both GAAP and non-GAAP financial results. I will just discuss product results in terms of revenue and geographic and customer results in terms of product orders. Unless stated otherwise, all
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