Cisco reported its third quarter financial results for the fiscal year 2024, ending in April, with revenue of $12,702 million, a 13% decrease compared to the same quarter in the previous year. The revenue was driven by $413 million from Splunk, with a net income according to GAAP of $1,886 million.
The business segment that experienced a significant decrease in revenue was Networking, the company’s main revenue stream, with $6,522 million in revenue, a 27% decrease, while the Security group saw a 36% increase in revenue.
Cisco highlighted the transformative impact of Splunk’s acquisition on the company’s business model. Revenue from subscriptions totaled $6.9 billion, accounting for 54% of total revenue, with an estimated continuous revenue for the next 12 months at $29.2 billion, a 22% increase.
In this performance report, Cisco also announced changes in senior management, with Gary Steele, former CEO of Splunk, appointed as the head of the Go-to-Market division to oversee operations in alignment with Cisco’s strategy, while Jeff Sharritts, head of customer and partner relations, will be leaving the company by mid-July.
TLDR: Cisco reported a revenue decrease in the third quarter of fiscal year 2024, impacted by the Networking segment but offset by growth in the Security segment. The acquisition of Splunk has driven subscription revenue and is expected to lead to continued revenue growth in the coming months. Senior management changes have also been announced.
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