DXC Technology(DXC) - 2024 Q4 - Annual Results

Revenue Performance - Q4 FY24 revenue was $3.39 billion, down 5.7% YoY and 4.9% on an organic basis[4][6] - Revenue for Q4 2024 was $3.386 billion, a decrease from $3.591 billion in Q4 2023[32] - Full-year revenue for 2024 was $13.667 billion, down from $14.430 billion in 2023[32] - Total revenue growth for FY24 is projected at -5.3%, with organic revenue growth at -4.1%[47] - GBS organic revenue growth for FY24 is expected to be 1.4%, while GIS organic revenue growth is projected at -9.3%[47] - Fiscal year 2023 total revenue growth was -11.3%, with organic revenue growth at -2.7%[47] - GBS organic revenue growth for FY23 was 2.4%, while GIS organic revenue growth was -7.2%[47] - Foreign currency impact on total revenue growth for FY24 is projected at -0.7%[47] - Acquisition and divestitures contributed 1.9% to total revenue growth for FY24[47] Earnings and Profitability - Q4 FY24 diluted EPS was $(1.10), while non-GAAP diluted EPS was $0.97, above guidance[4][8] - Net loss for Q4 2024 was $200 million, compared to a net loss of $756 million in Q4 2023[32] - Full-year net income for 2024 was $91 million, a significant improvement from a net loss of $568 million in 2023[32] - Net income for FY24 was $86 million, compared to a net loss of $566 million in FY23[48] - Adjusted EBIT for FY24 was $1,016 million, slightly lower than FY23's $1,157 million[48] - EBIT margin for FY24 was 1.4%, a significant improvement from FY23's negative 5.7%[48] - Adjusted EBIT margin for FY24 was 7.4%, slightly lower than FY23's 8.0%[48] - Non-GAAP net income for Q1 2024 was $185 million, compared to a reported net loss of $195 million[43] - Non-GAAP diluted EPS for Q1 2024 was $0.97, compared to a reported diluted EPS of $(1.10)[43] - Non-GAAP net income for FY 2024 was $615 million, compared to a reported net income of $86 million[43] - Non-GAAP diluted EPS for FY 2024 was $3.13, compared to a reported diluted EPS of $0.46[43] - Non-GAAP net income attributable to DXC common stockholders was $233 million for Q1 2023, with a diluted EPS of $1.02[45] Cash Flow and Liquidity - Q4 FY24 free cash flow was $155 million, with full-year free cash flow reaching $756 million[4][13] - FY25 free cash flow is projected to be approximately $400 million[15] - Free cash flow is used to evaluate cash available for debt repayment, share repurchases, and business investments[29] - Net cash provided by operating activities for the twelve months ended March 31, 2024, was $1,361 million, compared to $1,415 million in the same period last year[35] - Net cash used in investing activities for the twelve months ended March 31, 2024, was $491 million, compared to $635 million in the same period last year[35] - Cash and cash equivalents decreased to $1.224 billion as of March 31, 2024, from $1.858 billion in 2023[34] Segment Performance - GBS segment revenue was $1.71 billion, down 2.2% YoY, with a segment profit margin of 13.3%[10] - GIS segment revenue was $1.67 billion, down 9.0% YoY, with a segment profit margin of 7.4%[11] - Cloud Infrastructure & ITO revenue was $1.19 billion, down 6.6% YoY[12] - GBS segment profit for the twelve months ended March 31, 2024, was $835 million, down from $912 million in the previous year[37] - GIS segment profit for the twelve months ended March 31, 2024, was $437 million, compared to $507 million in the prior year[37] - GBS segment profit margin for the twelve months ended March 31, 2024, was 12.2%, down from 13.1% in the prior year[37] - GIS segment profit margin for the twelve months ended March 31, 2024, was 6.4%, compared to 6.8% in the previous year[37] Restructuring and Costs - The company incurred $111 million in restructuring costs in fiscal 2024, down from $216 million in fiscal 2023[37] - Restructuring costs for Q1 2024 were $20 million[43] - Restructuring costs in FY24 were $111 million, down from $216 million in FY23[48] - Transaction, separation and integration-related costs in FY24 were $7 million, down from $16 million in FY23[48] Non-GAAP Measures - Non-GAAP measures include EBIT, adjusted EBIT, and non-GAAP diluted EPS to provide supplemental operating performance information[23] - Non-GAAP effective tax rate for Q1 2024 was 29.7%, compared to a reported effective tax rate of 36.9%[43] - Non-GAAP effective tax rate for FY 2024 was 34.0%, compared to a reported effective tax rate of 21.1%[43] - Effective tax rate for Q1 2023 was 34.8% on a GAAP basis and 23.1% on a non-GAAP basis[45] Pension and OPEB - Pension and OPEB actuarial and settlement losses for the twelve months ended March 31, 2024, were $445 million, significantly lower than the $1,431 million in the previous year[37] - Pension and OPEB actuarial and settlement gains for Q1 2024 were $445 million[43] - Pension and OPEB actuarial and settlement losses in FY24 were $445 million, significantly lower than FY23's $1,431 million[48] Share Repurchases and Investments - The company repurchased $898 million worth of common stock in fiscal 2024, up from $669 million in fiscal 2023[35] - The company reported a net gain of $115 million from the disposition of insignificant businesses and strategic investments in fiscal 2024[42] - Gains and losses on disposition of businesses in FY24 were a loss of $115 million, compared to a loss of $190 million in FY23[48] Balance Sheet and Liabilities - Total assets decreased to $13.871 billion in 2024 from $15.845 billion in 2023[34] - Total liabilities decreased to $10.805 billion in 2024 from $12.025 billion in 2023[34] - Interest expense in FY24 increased to $298 million from $200 million in FY23[48] - Amortization of acquired intangible assets in FY24 was $354 million, down from $402 million in FY23[48] - Amortization of acquired intangible assets for Q1 2024 was $88 million[43] Book-to-Bill Ratio - Q4 FY24 book-to-bill ratio was 0.94x, with a trailing twelve-month book-to-bill of 0.91x[4] Guidance and Projections - FY25 guidance projects organic revenue growth between (6.0)% and (4.0)%[15] - FY25 adjusted EBIT margin is expected to be between 6.0% and 7.0%[15] Weighted Average Shares - Weighted average common shares outstanding for diluted EPS in Q1 2024 was 183.47 million[43] - Weighted average common shares outstanding for diluted EPS in Q1 2023 was 227.58 million[45]