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Oct 29, 2022
Cisco Q1 2023 Earnings Report
Cisco's Q1 2023 earnings were released, showing revenue growth and progress in business model transformation.
Key Takeaways
Cisco reported a 6% increase in revenue to $13.6 billion for Q1 FY2023, with GAAP EPS at $0.65 and non-GAAP EPS at $0.86. The company saw growth in annualized recurring revenue and made progress in its business transformation.
Revenue reached $13.6 billion, a 6% increase year over year.
GAAP EPS was $0.65, down 7% year over year, while Non-GAAP EPS was $0.86, up 5% year over year.
Total annualized recurring revenue (ARR) was $23.2 billion, up 7% year over year.
Remaining performance obligations (RPO) reached $30.9 billion, up 3% year over year.
Cisco
Cisco
Cisco Revenue by Segment
Cisco Revenue by Geographic Location
Revenue by Segment
Networking Revenue
CapyFin.comSecurity Revenue
CapyFin.comCollaboration Revenue
CapyFin.comObservability Revenue
CapyFin.comServices Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAPJC Revenue
CapyFin.com Forward Guidance
Cisco expects revenue growth between 4.5% and 6.5% year over year for both Q2 FY2023 and full year FY2023. Non-GAAP EPS is projected to be $0.84 to $0.86 for Q2 FY2023 and $3.51 to $3.58 for FY2023.
Positive Outlook
- Revenue growth of 4.5% - 6.5% Y/Y is expected for Q2 FY2023.
- Non-GAAP gross margin rate is guided at 63% - 64% for Q2 FY2023.
- Non-GAAP operating margin rate is projected at 31.5% - 32.5% for Q2 FY2023.
- Non-GAAP EPS is expected to be $0.84 - $0.86 for Q2 FY2023.
- Revenue growth of 4.5% - 6.5% Y/Y is expected for FY 2023.
Challenges Ahead
- GAAP EPS is estimated to be $0.59 to $0.64 for Q2 FY2023.
- Restructuring plan with pre-tax charges of approximately $600 million.
- Approximately $300 million of restructuring charges expected in Q2 FY2023.
- Approximately $200 million of restructuring charges expected during the second half of fiscal 2023.
- Remaining restructuring charges primarily through the first quarter of fiscal 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income