Financial Summary
All comparative percentages are on a year-over-year basis unless otherwise noted.
Q2 FY 2024 Highlights
Revenue Total
revenue was $12.8 billion, down 6%, with product revenue down 9% and service revenue up 4%. Revenue by geographic segment was: Americas down 4%, EMEA down 7%, and APJC was down 12%. Product revenue performance reflected growth in Security up
3%, Collaboration up 3% and Observability up 16%. Networking was down 12%.
Gross Margin On a GAAP basis, total gross margin,
product gross margin, and service gross margin were 64.2%, 62.7%, and 68.2%, respectively, as compared with 62.0%, 60.2%, and 67.2%, respectively, in the second quarter of fiscal 2023.
On a non-GAAP basis, total gross margin, product gross margin, and service gross margin were 66.7%, 65.2%, and 70.5%,
respectively, as compared with 63.9%, 62.1%, and 69.1%, respectively, in the second quarter of fiscal 2023.
Total gross margins by geographic segment
were: 65.7% for the Americas, 68.1% for EMEA and 68.2% for APJC.
Operating Expenses On a GAAP basis, operating expenses was
flat at $5.1 billion, and were 40.0% of revenue. Non-GAAP operating expenses were $4.3 billion, up 1%, and were 33.8% of revenue.
Operating Income GAAP operating income was $3.1 billion, down 6%, with GAAP operating margin of 24.2%. Non-GAAP operating income was $4.2 billion, down 4%, with non-GAAP operating margin at 33.0%.
Provision for Income Taxes The GAAP tax provision rate was 16.7%. The non-GAAP tax provision rate
was 19.0%.
Net Income and EPS On a GAAP basis, net income was $2.6 billion, a decrease of 5%, and EPS was $0.65, a decrease of
3%. On a non-GAAP basis, net income was $3.5 billion, a decrease of 3%, and EPS was $0.87, a decrease of 1%.
Cash Flow from Operating Activities $0.8 billion for the second quarter of fiscal 2024, a decrease of 83% compared with
$4.7 billion for the second quarter of fiscal 2023.
Balance Sheet and Other Financial Highlights
Cash and Cash Equivalents and Investments $25.7 billion at the end of the second quarter of fiscal 2024, compared with
$26.1 billion at the end of fiscal 2023.
Remaining Performance Obligations (RPO) $35.7 billion, up 12% in
total, with 50% of this amount to be recognized as revenue over the next 12 months. Product RPO and service RPO were each up 12%.
Deferred Revenue
$25.8 billion, up 8% in total, with deferred product revenue up 9%. Deferred service revenue was up 7%.
Capital Allocation
In the second quarter of fiscal 2024, we returned $2.8 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.39 per common share, or $1.6 billion, and repurchased
approximately 25 million shares of common stock under our stock repurchase program at an average price of $49.54 per share for an aggregate purchase price of $1.3 billion. The remaining authorized amount for stock repurchases under the
program is $8.4 billion with no termination date.
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