Cisco’s Q4 2022 results surpassed analyst forecasts with Webex by Cisco ending the quarter ahead on revenue and beating expectations.
The company’s total revenue amounted to $13.10 billion, exceeding the high end of its guidance range and expectations of $12.73 billion. Earnings were 83 cents per share, which is also above the 82 cents per share expected by analysts surveyed by Refinitiv.
The collaboration segment, which includes Webex by Cisco, was up by 2%, contributing $1.16 billion in revenue and beating StreetAccount’s $1.10 billion consensus.
Chuck Robbins, Chairman and Chief Executive Officer, said collaboration was driven by growth in devices, but it was also hampered by declines in meetings and calling offerings. Robbins elaborated further on the collaboration segment: “I will say that the teams are working really hard on the meetings and calling side.
“The calling side has been strong for us in the past few quarters. The product portfolio is in really good shape.
“The Net Promoter Score for our meetings platform is now 64, and that was 1 million customer responses, so it is a hugely improved experience.
“This year, the teams are really focused on trying to get that back to growth, but we’ve got a lot of work to do.”
Over the past quarter, Cisco released collaboration solutions, including a video desk phone and noise removal software for Webex.
The picture wasn’t all rosy, with the company’s overall revenue slightly down. The net income was $2.82 billion, which is a decrease of 6%. Cisco’s adjusted gross margin also fell from 65.3% to 63.3%, with analysts having predicted a shorter fall to 64.7%.
Looking ahead to the 2023 fiscal year, Cisco moved its adjusted earnings per share from £3.49 to $3.56 and increased its revenue growth forecast from 4% to 6%. These are ahead of Refinitiv’s analyst poll, which expected adjusted earnings to be $3.53 per share and 2.3% growth.
Robbins also spoke about its Cisco Live customer event, which took place this quarter for the first time in three years.
The event drew over 15,000 attendees, which included thousands of its biggest customers. Robbins said its discussions with these customers focussed on strategic projects, supply assurance, and Cisco’s role in supporting their technology road maps.
According to Cisco’s CEO, “they did not indicate any fundamental shift in their commitment to technology investments.”
- All the Big Announcements from Cisco Live
- Introducing the Bluescape for Webex App
- 14 Cisco Webex Integration Apps for Meetings and Messaging
Robbins said: “In summary, we executed well on our strategy and transformation during what remains a very dynamic time.
“This led to a strong close to our fiscal year, setting several records across our business, thanks to the solid execution from our teams, our market-leading innovation, and our continued growth of recurring revenue.
“We also took decisive actions to help offset inflation and build resiliency in our supply chain while investing in our business to position us well for long-term growth.
“The power of our technology continues to be a critical driver of economic growth and productivity. Our results and outlook demonstrate the critical role that Cisco plays as a leader in bringing innovative technology solutions to customers today and into the future.”
Recently, Akkadian Labs announced its support for Cisco Unified Contact Center Enterprise (UCCE) through its UC provisioning automation solution.
Last month, Cisco launched a Webex partner programme designed to help smaller businesses.
