CLAIM #17737 · CSCO (CSCO) · 2024Q3 earnings call · May 15, 2024 · due Jun 30, 2025
“I think you will -- what you said, I think is spot on. We will see those revenue synergies begin to ramp in the second part of fiscal '25 as these are not short sales cycles.”
Chuck Robbins · CEO
In context
“comp of Splunk to cash comp because historically, Splunk and Cisco have had two totally different philosophies on compensation? Chuck Robbins: Yes. Thanks, Jim. On the OpEx ramp, I mean, it's -- I know we haven't -- the Spunk team didn't put out guidance for this fiscal year, but you can look at where their OpEx was headed and layer that into the OpEx that we had. There is some growth year-on-year, there's some investment. It's not -- it's not a substantial ramp-up though in the investment on integration. It's more a question of just pulling the Splunk team together with ours. As I said, there will be some cost synergies that are likely to come more in the second half of the year, but this wasn't a deal that was motivated by cost synergies. It was much more motivated by revenue synergies. I think you will -- what you said, I think is spot on. We will see those revenue synergies begin to ramp in the second part of fiscal '25 as these are not short sales cycles as we get our team ramped up on how to sell Splunk as we get the Splunk team ramped up on how to sell Cisco and as we get our channel fully enabled to sell that. So yes, you're going to see those revenue synergies, but you'll need to think about them more in the second half of the year. Gary Steele: Yes. And I think the revenue synergies that we're focused on really are driven around the 5,000 accounts that we talked about earlier. The sales cycles on those are six to nine months. And so you're not going to see that immediately, but that work is happening. And we're also seeing tremendous collaboration across the organization where sales teams are working together to more broadly penetrate accounts. I think you start to see that in the first half, but it's going to layer in, you're going t”
Verify independently
SEC filings for CSCO ↗ · Claim quote is verbatim from the 2024Q3 earnings call.