DXC Technology Company

Good day and thank you for standing by and welcome to the DXC Technology FY21 Q4 earnings call. At this time, all participants are in a listen-only mode. After the speaker's remarks, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, John Sweeney, Vice President of Investor Relations. Please go ahead.

Thank you, and good afternoon, everyone. I'm pleased that you're joining us for DXC Technologies' fourth quarter fiscal 2021 earnings call. Our speakers on the call today will be Mike Salvino, our President and CEO, and Ken Sharp, our Executive Vice President and CFO. This call has been webcast at dxc.com forward slash investor relations, and the webcast includes slides that will accompany the discussion today. Today's presentation includes certain non-GAAP financial measures, which we believe provides useful information to our investors. In accordance with SEC rules, we've provided a reconciliation of these measures to their respective and most directly comparable GAAP measures. These reconciliations can be found in the tables including today's earnings release and the webcast slides. Certain comments we make on the call will be forward-looking. These statements are subject to known and uncertain risks and uncertainties, which could cause actual results to differ materially from those expressed on the call. A discussion of these risks and uncertainties is included in our annual report on Form 10-K and other SEC filings. I'd now like to remind our listeners that DXC Technology assumes no obligation to update the information presented on this call, except as required by law. And with that, I'd like to introduce DXC Technology's President and CEO, Mike Salvino. Mike.

Thanks, John, and I appreciate everyone joining the call today, and I hope you and your families are doing well. Today's agenda will start by giving you a quick update on our strong Q4 performance. Next, I will highlight the progress we are making on our transformation journey. Our strong Q4 results were driven by executing on the three key areas of our transformation journey, which are focus on our customers, optimize cost, and seize the market. I will hand the call over to Ken to share our detailed Q4 financial results. guidance for FY22, and longer-term outlook. Finally, I will make some closing remarks before opening the call up for questions. Regarding our Q4 performance, our revenues were $4.39 billion, approximately $85 million above the top end of our guidance. This is the third straight quarter of revenue stabilization, and we expect this trend to continue in FY22. Concerning adjusted EBIT margin, we delivered 7.5%, also higher than the top end of our guidance. This, too, is the third straight quarter of sequential margin expansion and is driven by our cost optimization program. We expect margins to continue to expand in Q1 of FY22. Booked a bill for the quarter was 1.08, underscoring the success of bringing the new DXE, which focuses on our customers and colleagues, to the market. This is the fourth straight quarter that we've delivered a 1.0 or better book to build. We expect our success of winning in the market to continue in Q1 of FY22. I'm pleased with the momentum we have achieved. All the work in FY21 to inspire our people, Invest in our customers, take costs out without disruption, and win in the market has positioned us very well for financial success in FY22 and longer term. Now, I will cover the good progress we are making on our transformation journey, starting with our customers. Our investment in our customers continues to be the primary driver of revenue stabilization. When we deliver for our customers and are seen as a trusted partner, customers are more likely to renew existing work and consider us for new work. Let me give you an example. We recently signed a five-year expansion with Zurich Insurance Group. We'll provide IT outsourcing and security services as part of their global IT transformation, focused on improving the customer and employee experience. This is a perfect example of delivering for a customer, strengthening the relationship, and then a customer wanting to work with DXC in the future. This is strong evidence that our investment in our customers is paying off, which gives us confidence that we can flatten organic revenue during FY22. Now let me turn to our cost optimization program. We have achieved our goal of $550 million of cost savings in FY21. Our cost optimization program was responsible for the strong adjusted EBIT margin of 7.5% in Q4. We've done well optimizing our costs and continuing to deliver for our customers without disruption. You will hear from Ken that we expect to continue to expand margins in FY22. Seize the market is the final area of our transformation journey. In this area, we are focused on cross-selling to our existing accounts and winning new work. The 1.08 book-to-bill that we delivered this quarter is consistent evidence that our plan is working. In Q4, 53% of our bookings were new work and 47% were renewals. Ahold Today is a great example of an existing customer who has renewed work with DXE and given us new work. We will be providing infrastructure services, application outsourcing, cloud migration, and workplace services in a hybrid cloud environment for their retail business services group to reduce costs and support their business-critical systems that enable each of their local brands to stock their shelves. Our ability to deliver a consistent book-to-bill of over 1.0 in each of the four quarters of FY21 is clear evidence that we can win in the IT services industry. This is translating into improving quarterly organic revenue growth, which we expect will flatten during FY22. Now, before I turn the call over to Ken, I would like to thank our colleagues, our customers, and our shareholders for their support. As we are witnessing the ongoing impact of COVID-19, our focus continues to be on our people. Currently, we are focused on the more severely impacted areas of India and the Philippines. The dedication of our team is a source of great pride for us at DXE as our people continue to take care of themselves, their families, and deliver for our customers. Now let me turn the call over to Ken.