CLAIM #17498 · CSCO (CSCO) · 2022Q3 earnings call · May 18, 2022 · due Jan 31, 2023
“I would expect this stuff to normalize back particularly without the Russia and the extra week impact. And then when supply chain starts to clear, then we'll start to see those normalized growth rates that we would expect”
Chuck Robbins · CEO
In context
“e that we will not begin recognizing the revenue until the hardware ships. So -- and that's up $1 billion year-over-year. So there is a large component of software that we're not recognizing right now that we would in normal times. So it's the first piece. And then if you take into consideration the extra week from a year ago where we do ratable recognition of revenue on a daily basis, we had an extra week. And then you take the software that we wrote down -- software revenue that we wrote down as a result of ceasing operations in Russia. So those three -- the first one is hard to put a number on, but assume it's reasonable. The Russia and the extra quarter was a 5-point headwind to our software growth. So I know it's a little complicated, but I wanted to make sure you understood that. So I would expect this stuff to normalize back particularly without the Russia and the extra week impact. And then when supply chain starts to clear, then we'll start to see those normalized growth rates that we would expect, so hopefully that wasn't too complicated. Tim Long: Yes. Just curious any other standalone software or 9000 upgrades? What are the kinds of things outside of the macro related that could really help? Chuck Robbins: Yes. The renewal stuff in '23, it could be helpful. We are continuing to make progress on that across the portfolio. I mean, we've got subscriptions running on switching on routing, enterprise routing, on enterprise wireless. We've even built some subscriptions into our mass scale infrastructure group. We've got subscriptions now in our data center networking group. So they'll sort layering in over the next few years. Tim Long: Okay, thank you. Marilyn Mora: Okay. It looks like we have time for one more question. Operator: Thank you. Amit Daryanani from Evercore. You may go ah”
Verify independently
SEC filings for CSCO ↗ · Claim quote is verbatim from the 2022Q3 earnings call.