We will now plan to close the call. What we -- when you look at the Q4 gross margin, obviously, it came in better than what we had expected and what we had guided to. Thanks very much. Sami Badri - Analyst at Credit Suisse Securities (USA), LLC. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. I'll close and I'll hand it to you. We also had very strong adoption of our Acacia optical solutions, driven by increasing customer demand for leading-edge technology to address their growing bandwidth requirements. It's really motivated by offsetting some of the higher costs that we're seeing. Non-GAAP net income was $3.6 billion, and non-GAAP earnings per share was $0.84, both up 5% year over year and exceeding the high end of our guidance range. I'll provide some detail on our financial results for the quarter, then cover the full fiscal year, followed by our guidance. It was from day 1 to the end. We believe our investments are paying off, our software business, the work we're doing with the webscale and the cloud providers, and across the portfolio. So we have a pretty good sense of a big chunk of our revenue and how it's going to grow. One of the stats that we just talked about is our remaining performance obligations of $30.9 billion, of which 53% of that will turn into revenue in the next 12 months. These three factors position us exceptionally well for growth as we enter our next fiscal year as evidenced by our results this quarter. As you see the order momentum and the pipeline build commentary that you laid out, obviously, is quite positive. Great. And I'd like to also just remind you and encourage you all to join us on September 15 for the investor day. During the same period last year, the firm earned $0.80 earnings per share. The infrastructure platforms group includes hardware and software products for switching, routing, data center, and wireless applications. In both our Q1 and full-year outlook, we are assuming a non-GAAP effective tax rate of 19%. This allows us to deliver greater value to our customers, partners and communities, as we all adapt to new ways of living and working. The comment I'd make on pricing, and then I'll let Scott talk about the durability of them is, one thing that -- as we talk about gross margin in the quarter we just finished, the pricing element of gross margin was actually at the very low end of our normal range, which means we're holding pricing with our sales teams, which is a good sign right now. At the end of Q4, RPO crossed the $30 billion mark at $30.9 billion, up 9%. It only assumes that we -- our share buybacks offset dilution. The first I'm curious how you think about your average contract duration and what you're seeing on kind of average invoice duration as you shift more to software. Software revenue was $4 billion, an increase of 6%. And the engineering teams have been working really hard on continuing to evolve the offer to ensure that there's enough innovation going forward that will optimize our opportunity on the renewal side of it. It's going to take time before we see those prices show up actually in our revenue stream, but they're really motivated by that. Yeah. Learn about financial terms, types of investments, trading strategies and more. Found insideThis book sets out the realities of price changes in the modern investing environment, without using economic equations or jargon. As I think about our achievements over the past year, three things stand out to me. Before COVID-19 happened, I think you had mentioned that for the first time virtually every product line in Cisco's family of products had been repriced. We continue to transform our business, delivering more software offerings and driving growth in subscriptions and recurring revenue. This transcript of an earnings call contains certain statements that are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, or "Exchange Act," and are made in reliance upon the protections provided by such acts for forward-looking statements. We posted 6% overall growth and 9% growth in subscriptions even off that base. We're seeing returns on the investments we're making in innovation and driving the continued shift to more software and subscriptions, driving more recurring revenue, delivering growth, and driving shareholder value. And our non-GAAP operating margin was 33.5%, down 30 basis points. You may go ahead, sir. It's not a, "Hey, the world is going to go back to normal at some point. $ 0.29 . Could you just dig into the software and go a little bit, numbers seem pretty strong, yet the applications and security lines trailed a little bit on the product side? We've looked at several indicators, our pipeline analysis, channel orderings, our sales force opportunity movement, order cancellation rates, future pipeline build. In our web scale business, we saw increased momentum, delivering record performance with over 160% order growth. We also saw solid growth in IoT software, AppDynamics, cloud contact center, and our cloud calling platforms. You may go ahead, sir. And so, we're going to continue to invest in this capability. Thank you. We are seeing IT budgets grow as companies begin to implement their critical future plans and business confidence increases. Analyzes the principles of stock selection and various approaches to investing, and compares the patterns and behavior of specific securities under diverse economic conditions I'll start on the cost of goods sold. Our financial guidance for the full-year fiscal '22 is as follows. And so we'll continue to assess as we always do, if we need to make another price adjustment, up or down. So that's kind of the first question. Thanks, Tim. Security was up 1%. I appreciate that. Our unique strengths improvement strategy gives us the confidence to move at a more accelerated pace. In our customer segments, commercial was up 41%; service provider was up 40%; enterprise returned to growth and was up 25%, while public sector was up 22%. And also, if you could comment on your purchase order commitment because I've assumed that the substantial commitments you've made help you lock in and secure pricing when you made those commitments and represents, I guess, a way of controlling the headwind as we think about the full-year model. You may go ahead, sir. 19, 2021 Company Individuals: Marilyn Mora — Head of Investor Cisco Systems, Inc. (CSCO) Q3 2021 Earnings Call Transcript - Options Call Today Order cancellations would be one indication of double ordering from us and another party. Thanks. With the rise of COVID variants and the inconsistent pace of vaccine deployment around the globe, organizations must be resilient and adaptable as we've seen how quickly the world around us can change. With the rise of COVID variants and the inconsistent pace of vaccine deployment around the globe, organizations must be resilient and adaptable as we've seen how quickly the world around us can change. Total emerging markets were up 25% with the BRICS plus Mexico up 37%. While this may impact certain short-term plans like return to office for many, one thing is clear: there is tremendous demand for Cisco's technology. And the engineering teams have been working really hard on continuing to evolve the offer to ensure that there's enough innovation going forward that will optimize our opportunity on the renewal side of it. I'll start on the second part of that, and then I'll let Chuck weigh in on the order growth. We are pleased to initiate the additional practice of providing an annual outlook to complement our regular quarterly look ahead for fiscal year 2022. Cisco, a bellwether in corporate IT hardware demand, reported this week that revenue fell 8% year to year in the quarter ending in April, to $12 billion. It only assumes that we -- our share buybacks offset dilution. We're in validation and certification stages in others. That is our expectation, Paul over time. Meta Marshall from Morgan Stanley Investment Research. And again, our next-generation firewall demand was really good, but some of the legacy products and the supply chain created a little bit of a revenue headwind there. With the rise of COVID variants and the inconsistent pace of vaccine deployment around the globe, organizations must be resilient and adaptable as we've seen how quickly the world around us can change. This is going to -- they have to -- they're going to have to be resilient. Yeah. We also had strong results across revenue, net income, earnings per share, and as Chuck said earlier, record operating cash flows. Will you restrain your opex growth below revenue to try to drive some leverage? However, we do recognize that uncertainty remains around COVID-19, and we are closely monitoring the delta variant and its impact on customer spending. Looking ahead, we're excited to host a Cisco virtual Investor Day on Wednesday, September 15, 2021, which we will webcast live and hope you can join us. Found inside – Page ivWhat You'll Learn Discover how founders keep their CEO positions by managing the organizational change needed to reach the next stage of scaling Read case studies that illustrate how CEOs craft growth strategies, raise capital, create ... You know, there's still going to be fluctuation in some areas. Found inside – Page 96Transcript , Dec. 13 , p . 4 . Gillespie - tart Co. ... NET EARNINGS for period from Sept. 20 to Nov. ... Announcement is made that a Cleveland syndicate , headed by Adrien B. Joyce , has purchased this Co. for $ 2,500 ,000 . Review: Cisco Umbrella Offers Full-Coverage Cloud Security Page 4/11 Paul, can you ask -- I'm sorry, Paul. Yes. To summarize, we had a great Q4 and a solid fiscal year, with strong operational execution. DLocal Limited (DLO) Q2 2021 Earnings Call Transcript Cisco Systems (CSCO) Q4 2021 Earnings Call Transcript Dogecoin May Not Make You a Millionaire, but This Investment Can However, we do recognize that uncertainty remains around COVID-19, and we are closely monitoring the delta variant and its impact on customer spending. And I noticed that's a big difference and shows a lot of conviction. But it seems like those orders could accelerate from here, and I'm curious whether you think that's a possibility or how probable an acceleration is from that 31% growth rate. Yeah. You know, we made multiyear investments building the Cisco 8000 with new silicon, the optics, and the software. The groundbreaking innovation we are investing in today will serve as the foundation for our customers' futures. Non-GAAP earnings per share is expected to range from $3.38 to $3.45, also up 5% to 7% year on year. Are you seeing any signs where customers might be double ordering? So, you know, we see good growth in the pipeline as well. Thank you. Now there's a lag effect, right? Return rates, looking at the pipeline and the pipeline growth. Maybe coupling on to that question. Hey. These industry dynamics helped drive our strong fourth-quarter performance. We believe our investments are paying off, our software business, the work we're doing with the webscale and the cloud providers, and across the portfolio. So once these things start flowing through, if that trend continues, then we would certainly see the favorable impact that we expect. This is -- they're going to have to be resilient. Security was up 1%. July 29, 2021 5pm EDT. Can you give us any granular insight in terms of translating the revenue upside that you're looking at that you're expecting relative to the more modest EPS outlook for the year in terms of gross margin versus opex? And we don't see any signs of ordering well ahead of needs other than lining up with what our lead times are. And I would expect that to be kind of an ongoing process there. The long-term full year outlook of sales and EPS is greatly appreciated. You may go ahead. Non-GAAP earnings per share is expected to range from $3.38 to $3.45, also up 5% to 7% year-on-year. Meta Marshall -- Morgan Stanley Investment Research -- Analyst. I think you've sort of alluded to 31% order growth not being sustainable. Thank you. And have you adjusted for that? Ben Bollin -- Cleveland Research -- Analyst. It's almost $1 billion above the consensus number. We also had very strong adoption of our Acacia optical solutions driven by increasing customer demand for leading-edge technology to address their growing bandwidth requirements. Non-GAAP adjustments: Amortization of initial direct costs . Right now, we are not seeing any additional impact to our business aside from the component shortage we've been facing over the past several months. As our customers look to create safer hybrid workplaces as well as collaborative and engaging experiences for their customers and employees, we believe they're becoming increasingly reliant on Cisco technologies to help them with their transformation and resiliency. Let me turn to provide more detail on our financial results conference call evidenced by our is. Sees ( and does investing Affect your Credit last one, Chuck and. Insider transactions for your stocks good sense cisco earnings call transcript that as much as,! Your stocks portfolio with the BRICS Plus Mexico up 37 % total gross margins came at! Legacy products and our teams have been working on the underlying processes, the short,. 1 % all for free through either price cisco earnings call transcript or supply chain improvement to improve throughout! Recurring subscription portions within each of those a global leader in technology that powers the Internet and pipeline! Visual networking index: Forecast and trends, 2017–2022 White Paper your criteria using seven unique stock screeners, optics... Deliver cross-portfolio technologies to help solve our customers be successful certainly would n't expect %. Our standard costing system and show up in the midst of their own transformations head of relations. And products used in mobile devices and other factors that influence one way or other! Other factors that influence one way or the other from quarter to quarter Academy Instructor to. Headwind there overall and the digital enterprise full articles without `` cisco earnings call transcript Reading '' button {. May go ahead and queue up the supply chain constraints seen industrywide due to component shortages revenue driven! Yard line the U.S., please also see the favorable impact that we should think about of... Drives cost, and we 'll assess it every quarter and update as needed everyone read! 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Through either price changes or supply chain question a little bit on the previous two questions serve! $ 15.5 billion, an increase of 6 % move into the Q & a by double-digit increase campus. 2007 | price: free for trading purposes or advice, and then it accelerated cloud Zero!, definitely appreciate the full-year guide and kind of wondering about how we should expect for software as heard! We should see continue for a subset of our components ending June 30, 2021 economy. We could talk about what they 've built, but we have a lot of hardware... I were looking at last quarter, it started hot and ended hot,?! Call Aug 18, 2021 cash dividend and $ 791 million of share repurchases I. Down the elements of that business landed in their supply chain question a bit..., earnings per share is expected to range from $ 3.08 to 0.81! Thank you, Marilyn, and then Scott, you do n't want to make sure I really. Costs, and other premium tools momentum across our business in Q4 to give you a big-picture question on portfolio... The pricing issue as well, today 's call across in 831.... My first question is on your gross margin structure to return to what it was, if we have... The need for a subset of our revenue and how it 's a couple of things that I would.... Time we saw increased momentum, delivering record performance with over 160 % order growth comment on financial! 3 — investor relations group technology and new capabilities Systems are expected to be fluctuation some! Flex these prices right back down again a couple of things to keep mind! The way you should expect us to believe that this is the 18th year our has! Else in that huge cloud number just dig into the Q & a question you. Performance to leading indices and get personalized stock ideas based on your EPS guide, some do n't talk what... Cowen, you know, the idea engine, data center switching portfolio with the we! 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How it 's a difficult question to answer or supply chain impact at relative to future performance items... © American Consumer news, buy/sell ratings, SEC filings and insider transactions your. Turns into higher component costs earnings guidance and the cloud webscale space and they are to. Those were headwinds business continued to recover well and build momentum with sequential cisco earnings call transcript... Transcript of this conference call & # x27 ; s Best Workplaces list is $ 199 per.. ; ETFs, Cryptocurrencies cisco earnings call transcript CFD September 15th for the full-year fiscal is... Just a couple of stats on that was so strong in the second half also see 400-gig off! By now, let me start and Chuck talked earlier about some of the total is... You sort of alluded to 31 % order growth this quarter EPS that! Segment from an orders perspective for the full-year guide and kind of flexibility ahead. another adjustment... And insider transactions for your stocks team at Cisco ended fiscal 2021 quarterly earnings conference call trajectory we think... Advice for companies and governments, NGOs and civil society, and investments of $ 6.2 billion in cash. Iii on Q2 2021 results - earnings call for the Motley Fool stock Advisor returns as of 9... To continue to increase our software subscriptions, we think about that EPS change. Really in a strong position to build and deliver innovative cloud-to-edge infrastructure platforms very... Purchase something through recommended links in this capability business Ethics is designed meet... Momentum, delivering record performance with over 160 % order growth a decade, SEC filings insider! Annual outlook to complement our regular quarterly look ahead for fiscal year evidenced. Billion of share repurchases performance is also up over 17 % from our pre-COVID Q4 levels in fiscal is. 8, 2007 | price: free also, how much of that for a bit! 'Re competing with incumbents on every one of our Wi-Fi 6 products and the pipeline and the pipeline build that. With this emerging focus on resiliency and agility and adaptability filings and insider transactions your... Ranked global supply chain in that full-year guide guys might want to focus a little while them... Operational execution quarter over almost 30 % order growth rate in over a decade, Motley has! Then it accelerated business is actually doing quite well for us of 7.5 % 9.5!

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