Vertiv(VRT) - 2023 Q4 - Annual Results

Revenue Performance - For Q1 2020, total revenue was $897.3 million, with products contributing$590.9 million and services & spares contributing $306.4 million[3]. - In Q2 2020, total revenue increased to$1,005.7 million, with products at 693.8 million and services & spares at 311.9 million[3]. - Q3 2020 saw total revenue of $1,162.0 million, with products generating$821.0 million and services & spares at $341.0 million[3]. - For Q4 2020, total revenue reached$1,305.6 million, with products at 947.8 million and services & spares at 357.8 million[4]. - In 2020, total revenue was $4,370.6 million, with products contributing$3,053.5 million and services & spares at $1,317.1 million[4]. - For Q1 2021, total revenue was$1,098.4 million, with products at 777.8 million and services & spares at 320.6 million[5]. - In Q2 2021, total revenue increased to $1,260.3 million, with products at$897.1 million and services & spares at $363.2 million[6]. - For the year ended December 31, 2021, total revenue was$4,998.1 million, with products contributing 3,559.4 million and services & spares at 1,438.7 million[6]. - Total revenue for the fiscal year 2022 reached 5,691.5 million, with critical infrastructure & solutions contributing 3,475.3 million[11]. - For Q1 2023, total revenue was 1,521.1 million, with critical infrastructure & solutions generating 954.7 million[12]. - In Q2 2023, total revenue increased to 1,734.1 million, driven by critical infrastructure & solutions at 1,121.2 million[13]. - Q3 2023 saw total revenue rise to 1,742.6 million, with critical infrastructure & solutions accounting for 1,138.3 million[13]. - The company projects total revenue for the fiscal year 2023 to be 6,863.2 million, with critical infrastructure & solutions expected to contribute 4,449.1 million[13]. Operating Profit and Margins - The adjusted operating profit for the fourth quarter of 2021 was $93.9 million, reflecting a decline compared to previous quarters[18]. - The company reported a total adjusted operating profit of$471.0 million for the full year 2021, indicating a decrease from the previous year[18]. - In fiscal year 2022, the total adjusted operating profit was $439.2 million, with quarterly profits of$12.5 million, $82.0 million,$134.2 million, and $210.5 million respectively[20]. - For fiscal year 2023, the total adjusted operating profit is projected to be$1,053.5 million, with quarterly profits of $175.5 million,$251.2 million, $296.4 million, and$330.4 million respectively[24]. - The Americas segment contributed $426.1 million to adjusted operating profit in 2022, increasing to$958.8 million in 2023[20][24]. - The Asia Pacific segment's adjusted operating profit rose from $274.4 million in 2022 to$248.5 million in 2023[20][24]. - The Europe, Middle East & Africa segment's adjusted operating profit increased from $234.6 million in 2022 to$380.0 million in 2023[20][24]. - The adjusted operating margin for the Americas segment improved from 8.7% in 2022 to 19.8% in 2023[21][25]. - The adjusted operating margin for the Asia Pacific segment was 11.0% in 2022 and decreased to 9.6% in 2023[21][25]. - The adjusted operating margin for the Europe, Middle East & Africa segment increased from 11.5% in 2022 to 20.0% in 2023[21][25]. Segment Performance - The Americas region generated 2,560.5 million in critical infrastructure & solutions for the fiscal year 2023, representing a significant portion of total revenue[13]. - In 2020, the Americas segment reported an adjusted operating profit of 344.6 million, while Asia Pacific and Europe, Middle East & Africa reported $111.4 million and$40.6 million respectively, totaling $496.6 million for all reportable segments[15]. - The adjusted operating margin for the Americas in 2020 was 16.9$441.2 million, while Asia Pacific and Europe, Middle East & Africa reported $253.4 million and$217.6 million respectively, totaling $912.2 million for all reportable segments[17]. - The adjusted operating margin for the Americas in 2021 was 12.2$457.4 million, while in 2021, it was a loss of $508.0 million[17]. - Foreign currency losses for 2020 totaled$26.0 million, while in 2021, it was a loss of $3.2 million[17]. - The company incurred merger and acquisition costs of$48.1 million in 2021, which impacted the adjusted operating profit[18]. - Foreign currency losses totaled $3.7 million in 2022 and are projected to be$16.0 million in 2023[20][24]. - Corporate and other expenses were $492.2 million in 2022 and are expected to be$517.8 million in 2023[20][24]. Revenue Reporting Changes - The company will reclassify certain prior period amounts starting in 2024 to align with leadership's review of results and operations[1]. - The previously reported revenue by product and service offering will combine critical infrastructure & solutions and integrated rack solutions, which will be managed collectively as products[2]. - The updated disclosure indicates a shift in revenue reporting, combining critical infrastructure & solutions with integrated rack solutions under products[11]. - The company plans to reallocate centralized costs to respective business segments starting in 2024, which may impact future financial reporting[14].