Cognizant Technology Solutions Corporation · NASDAQ:CTSH

Cognizant Technology Solutions — Q2 2018 Earnings Presentation

12 slides from Cognizant Technology Solutions's earnings presentation, Aug 2, 2018

  1. Slide 1: Helping Clients Win with Digital

    Helping Clients Win with Digital Second Quarter 2018 Earnings Supplement August 2, 2018 Cognizant ©2018 All rights reserved.

  2. Slide 2: Forward Looking Statements and Non-GAAP Financial Measures

    Forward Looking Statements and Non-GAAP Financial Measures This earnings supplement includes statements which may constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the accuracy of which are necessarily subject t

  3. Slide 3: A Leader in Helping Today's Leading Companies Adapt to the Digital Era

    A Leader in Helping Today’s Leading Companies Adapt to the Digital Era The right capabilities to help clients transform at every level of their enterprises • Deep digital and industry expertise at the scale required to transform the • Long-term, trusted client relationships helping to design and man

  4. Slide 4: Strong Operational Execution in 2Q18

    Strong Operational Execution in 2Q18 Revenue1 2Q18 Highlights1 $4.01B Revenue: $3.67B • 2Q18 Revenue of $4.01B increased 9.2% Y/Y and is within our guided range • Includes 100 bps of favorable foreign currency impact Operating Margin: 2Q17 2Q18 9.2% Y/Y Increase • Strong Non-GAAP operating margin2 p

  5. Slide 5: Growth Across Segments and Geographies

    Growth Across Segments and Geographies Revenues by Segment ($M) 2Q18 Y/Y Chg. Revenues by Geography ($M) 2Q18 Y/Y Chg. Financial Services $ 1,469 4.5% North America $ 3,067 7.6% Healthcare 1,156 10.1% Europe 690 19.2% Products and Resources 840 12.4% Rest of World 249 3.8% Communications, Media and

  6. Slide 6: Supporting Metrics Demonstrate Continued Progress and Areas of Focus

    Supporting Metrics Demonstrate Continued Progress and Areas of Focus Customers and Revenue Insights Balance Sheet Strategic Customers: Balance Sheet Remains Very Healthy • 7 new strategic customers added, bringing total to 371 • $4.2B in cash and short-term investments1 Revenue by Solution: • Cash a

  7. Slide 7: Key Takeaways and Guidance

    Key Takeaways and Guidance Key Takeaways • Results demonstrate continued strength and confidence in our execution, strategy and ongoing shift to digital • Non-GAAP operating margin expansion reflects strong operational execution and positions us well to absorb planned investments, including wage inc

  8. Slide 8: Appendix: Reconciliation

    Appendix: Reconciliation of Non-GAAP Financial Measures Cognizant ©2018 All rights reserved. Cognizant ©2018 All rights reserved.

  9. Slide 9: Reconciliations of Non-GAAP Financial Measures

    Reconciliations of Non-GAAP Financial Measures This earnings supplement includes references to the following measures defined by the Securities and Exchange Commission as Non-GAAP financial measures: Non-GAAP operating margin and Non-GAAP diluted earnings per share (“Non-GAAP diluted EPS”). These No

  10. Slide 10: Reconciliations of Non-GAAP Financial Measures

    Reconciliations of Non-GAAP Financial Measures (dollars in millions, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, Guidance 2018(a) 2017(a) 2018(a) 2017(a) Q3 2018 Full Year 2018 GAAP income from operations $ 670 $ 606 $ 1,363 $ 1,176 Add: Stock-based compensation e

  11. Slide 11: Reconciliations of Non-GAAP Financial Measures

    Reconciliations of Non-GAAP Financial Measures Notes: a) On January 1, 2018, we adopted the New Revenue Standard using the modified retrospective method. Results for reporting periods beginning after January 1, 2018 are presented under the New Revenue Standard, while prior period amounts are not adj

  12. Slide 12: Reconciliations of Non-GAAP Financial Measures

    Reconciliations of Non-GAAP Financial Measures e) In the second quarter of 2018, we provided $100 million of initial funding to Cognizant U.S. Foundation, which is focused on science, technology, engineering and math (or collectively, STEM) in the United States. This funding is not expected to recur

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