Cisco has released its second quarter results for the fiscal year 2024, ending January 2024. The company reported a total revenue of $12.791 billion, a decrease of 6% compared to the same quarter in the previous year. According to Generally Accepted Accounting Principles (GAAP), the net profit was $2.634 billion.
Cisco mentioned that its revenue growth was driven by the Security, Collaboration, and Observability business segments. Meanwhile, software-related revenue remained steady, with a 5% increase in subscription-based software and a 6% increase in Annual Recurring Revenue (ARR), reaching $24.7 billion.
During the earnings call with analysts, Chuck Robbins, the CEO of Cisco, highlighted that in the bigger economic picture, the company is starting to see caution in organizational spending and increased uncertainty. This has resulted in newer technologies that customers are looking to adopt having longer adoption cycles than previously anticipated.
In addition to the financial results, Cisco announced its organizational restructuring plan, impacting approximately 5% of its global workforce, or around 4,250 positions.
TLDR: Cisco’s second quarter fiscal year 2024 results showed a 6% decrease in revenue, but the company experienced growth in its Security, Collaboration, and Observability segments. Software revenue remained steady, with a 5% increase in subscription-based software and a 6% increase in ARR. CEO Chuck Robbins noted caution in organizational spending and increased uncertainty in the current economic environment. Cisco also announced a restructuring plan affecting around 5% of its global workforce.
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