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Jan 28, 2023
Cisco Q2 2023 Earnings Report
Cisco's Q2 2023 earnings were reported, demonstrating revenue growth and progress in business model transformation.
Key Takeaways
Cisco reported a 7% increase in revenue to $13.6 billion, with GAAP EPS at $0.67 and Non-GAAP EPS at $0.88. The company is making strides in its business model transformation, highlighted by a 6% increase in total annualized recurring revenue and a 10% increase in total software revenue.
Revenue reached $13.6 billion, a 7% increase year over year.
GAAP EPS was $0.67, while Non-GAAP EPS was $0.88, representing a decrease of 6% and an increase of 5% year over year, respectively.
Total annualized recurring revenue (ARR) increased by 6% year over year to $23.3 billion.
Cisco increased its quarterly dividend by 3% to $0.39 per share.
Cisco
Cisco
Cisco Revenue by Geographic Location
Revenue by Geographic Location
Americas Revenue
CapyFin.comEMEA Revenue
CapyFin.comAPJC Revenue
CapyFin.com Forward Guidance
Cisco provided guidance for Q3 FY 2023 and full year FY 2023, expecting revenue growth and non-GAAP EPS. The Q3 FY 2023 guidance assumes an effective tax provision rate of 18% for GAAP and 19% for non-GAAP results, while the FY 2023 guidance assumes an effective tax provision rate of 20% for GAAP and 19% for non-GAAP results.
Positive Outlook
- Revenue: 11% – 13% growth Y/Y for Q3 FY 2023
- Non-GAAP gross margin rate: 63.5% – 64.5% for Q3 FY 2023
- Non-GAAP operating margin rate: 33% – 34% for Q3 FY 2023
- Non-GAAP EPS: $0.96 – $0.98 for Q3 FY 2023
- Revenue: 9% – 10.5% growth Y/Y for FY 2023
Challenges Ahead
- GAAP Gross Margin Rate: 61.5% - 62.5% for Q3 FY 2023
- GAAP Operating Margin Rate: 25.5% - 26.5% for Q3 FY 2023
- GAAP EPS: $0.74 - $0.79 for Q3 FY 2023
- GAAP EPS: $2.85 - $2.96 for FY 2023
- Non-GAAP EPS: $3.73 - $3.78 for FY 2023
Revenue & Expenses
Visualization of income flow from segment revenue to net income