NYSE$VRT

Vertiv Holdings Co · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Vertiv's first quarter results for 2023 demonstrated strong growth and profitability, exceeding expectations and leading to raised full-year guidance.

Vertiv reported a strong first quarter in 2023 with net sales growth of 32% and organic net sales growth of 35%. Operating profit increased significantly, driven by pricing and volume benefits. The company raised its full-year 2023 operating profit and adjusted operating profit guidance, reflecting confidence in continued growth and operational execution.

  • Net sales increased by 32% and organic net sales grew by 35% compared to the first quarter of last year.
  • Operating profit reached $130 million, while adjusted operating profit was $176 million, exceeding the high-end of the guidance range.
  • Net cash generated by operating activities was $42 million, and adjusted free cash flow was $25 million, both showing substantial increases year-over-year.
  • Full year 2023 operating profit guidance was raised to $618 million at the midpoint, and adjusted operating profit guidance was raised to $800 million at the midpoint, up 82% compared to 2022.

Headline financials

Total Revenue

$1.52B

Previous: $1.16B+31.5%
EPS (adj)

$0.24

Previous: -$0.08+400.0%
Organic Orders Growth

35.0%

Previous: 34.0%+2.9%
Operating Margin

8.6%

No prior period
Capital Expenditures

-$27.8M

Previous: -$15.1M-84.1%
Free Cash Flow

$22.5M

Previous: -$6.6M+440.9%
Net Income

$50.3M

Previous: $8.5M+491.8%
Operating Income

$130M

Previous: -$45.2M+388.3%
Gross Profit

$496M

Previous: $304M+63.2%
Cash & Equivalents

$276M

Previous: $289M-4.3%
Total Assets

$7.26B

Previous: $6.91B+5.0%
Stock-Based Comp

$5.5M

Previous: $6.6M-16.7%

Revenue & EPS history

Vertiv · Revenue · Quarterly

$1.52B

Q1 2023+31.5%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Vertiv · $1.19B total across 1 segment · Q1 2023

  • Products
    $1.19B+39.7%

Forward guidance

Vertiv raised its full year 2023 adjusted operating profit guidance based on strong first quarter results and continued resilient data center market demand.

Tailwinds

  • Market demand remains healthy and pipeline activity is encouraging.
  • Strong beginning-of-the-year backlog.
  • Improving supply chains.
  • Improved operational execution.
  • Price realization of $300 million.

Headwinds

  • Differences in quarterly seasonality in 2023 compared to historic patterns.
  • Incremental growth investments of $40 million.
  • High variability in forecasting.
  • Complexity in quantifying certain amounts.
  • Uncertainty with respect to forecasting.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.5%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+7.7%

Avg return

30 days after

56%

18 / 32 earnings

Positive

+30.0%

Q2 2023

Best reaction

-36.7%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.1%+3.2%+4.8%
Q4 2025+24.5%+17.5%+29.7%
Q3 2025-2.0%+10.4%-8.6%
Q2 2025+1.0%-1.8%-10.6%
Q1 2025+8.5%+20.0%+45.0%
Q4 2024-9.7%-12.3%-29.0%
Q3 2024-2.2%+1.0%+24.6%
Q2 2024-16.0%-14.3%-13.7%
Q1 2024+14.1%+19.7%+34.1%
Q4 2023+1.4%+6.9%+33.0%
Q3 2023-10.7%-1.9%+9.4%
Q2 2023+30.0%+34.6%+50.3%
Q1 2023+18.5%+21.2%+61.4%
Q4 2022+7.9%+3.3%-14.2%
Q3 2022+4.7%+1.3%-2.8%
Q2 2022+11.9%+10.2%-4.8%
Q1 2022+10.6%+9.3%-0.9%
Q4 2021-36.7%-33.5%-34.3%
Q3 2021+6.9%+8.3%+7.2%
Q2 2021+1.7%+0.2%+2.2%
Q1 2021+0.7%-1.1%+7.5%
Q4 2020-6.3%-1.8%-10.2%
Q3 2020-1.8%-4.0%+12.2%
Q2 2020+8.0%+11.1%+5.9%
Q4 2019+3.4%+8.5%+31.5%
Q1 2020-0.9%-2.9%+30.1%
Q2 2019-16.4%-31.9%-13.7%
Q3 2019+0.0%-0.3%+1.0%
Q1 2019-0.3%-0.3%+0.1%
Q4 2018+0.2%+0.6%+0.7%
Q3 2018+0.5%+1.2%+1.3%
Q2 2018-0.1%-1.1%-1.6%

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