Cisco Systems, Inc. Reports Q1 2024 Earnings Conference Call
Keywords: Cisco Systems, Inc., Q1 2024, Earnings Conference Call, revenue, profitability, business model transformation, networking, security, collaboration, observability, services, ARR, software revenue, subscription revenue, Splunk, operating leverage, capital a
Cisco Systems, Inc. (NASDAQ:CSCO) reported its Q1 2024 Earnings Conference Call on November 15, 2023. The call was led by Sami Badri, the Head of Investor Relations, with Chuck Robbins, the Chair and CEO, and Scott Herren, the CFO, also in attendance. The call included discussions on the company's revenue, profitability, and business model transformation. Cisco reported strong revenue growth and record non-GAAP operating margin in Q1, driven by networking, security, collaboration, observability, and services. The company also reported a solid performance in annual recurring revenue (ARR), total software revenue, and subscription revenue. However, Cisco experienced a slowdown in new orders, primarily due to customers taking time to onboard and deploy heightened product deliveries. This bottleneck affected larger enterprise, service provider, and cloud customers, and was most pronounced in October. The company believes this phase is temporary and estimates there is an additional one to two quarters' worth of shipped orders in customers' hands, still waiting to be deployed. Cisco expects product order growth rates to increase in the second half of the fiscal year. The company also announced its intent to acquire Splunk, a move that is expected to enhance its capabilities in higher growth areas. The call concluded with a commitment to delivering value to shareholders through operating leverage, capital allocation, and expense management. Cisco's next quarterly call is scheduled for February 14, 2024.