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Jul 27, 2024
Cisco Q4 2024 Earnings Report
Cisco's Q4 2024 earnings were reported, revealing a mix of growth in key areas and overall revenue decline.
Key Takeaways
Cisco reported Q4 FY24 revenue of $13.6 billion, a 10% decrease year-over-year. GAAP EPS was $0.54, a 44% decrease, and non-GAAP EPS was $0.87, a 24% decrease. The company saw product order growth and strong margins, with software and recurring revenue metrics showing solid growth, enhanced by the inclusion of Splunk.
Cisco's Q4 revenue reached $13.6 billion, above the high end of guidance.
GAAP gross margin was 64.4%, and non-GAAP gross margin was 67.9%.
Total subscription revenue was $27.4 billion, representing 51% of total revenue.
Total annualized recurring revenue (ARR) was $29.6 billion, up 22% 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 provided guidance for Q1 FY25 with revenue between $13.65 billion and $13.85 billion and non-GAAP EPS between $0.86 and $0.88. For FY25, revenue is expected to be between $55.0 billion and $56.2 billion, with non-GAAP EPS between $3.52 and $3.58.
Positive Outlook
- Revenue: $13.65 billion - $13.85 billion (Q1 FY25)
- Non-GAAP gross margin: 67% - 68% (Q1 FY25)
- Non-GAAP operating margin: 32% - 33% (Q1 FY25)
- Non-GAAP EPS: $0.86 - $0.88 (Q1 FY25)
- Revenue: $55.0 billion - $56.2 billion (FY25)
Challenges Ahead
- GAAP EPS: $0.35 - $0.42 (Q1 FY25)
- Restructuring charges of up to $1 billion
- Approximately $700 million to $800 million of restructuring charges expected in Q1 FY25
- Effective tax provision rate of approximately 17% for GAAP (Q1 FY25 and FY25)
- Effective tax provision rate of approximately 19% for non-GAAP (Q1 FY25 and FY25)
Revenue & Expenses
Visualization of income flow from segment revenue to net income