TEANECK, N.J., Nov. 18, 2021 /PRNewswire/ --
Cognizant (Nasdaq: CTSH), a leading provider of information
technology, consulting, and business process services, today hosted
a virtual Investor Briefing to provide an update on its growth
strategy and financial targets.
"We continue to make strong progress in positioning the company
for sustained revenue growth and margin expansion," said
Brian Humphries, Chief Executive
Officer. "By executing a growth strategy, which includes
strengthening our digital portfolio, partnerships, and commercial
engine, while investing in our global delivery network, people, and
capabilities, we can help clients with their most strategic
initiatives across their transformation journeys. I am excited
about the global opportunities that lie ahead to accelerate our
growth, expand margins, and deliver enhanced long-term shareholder
value."
Event Overview
During the Investor Briefing, CEO Brian
Humphries provided an update on Cognizant's strategy to
drive growth and long-term shareholder value, including:
- Accelerating digital, shifting of the portfolio toward
high-growth digital services
- Globalizing Cognizant, scaling internationally
- Increasing relevance to clients, investing in industry
expertise to help clients be successful
- Repositioning the brand, strengthening Cognizant's brand
credentials
The company also provided an update on ongoing initiatives to
support its people and strengthen its operations.
2022-2024 Financial Targets
Cognizant believes that the strategic levers outlined during the
company's Investor Briefing will drive accelerated long-term
growth. As part of today's event, CFO Jan
Siegmund shared additional detail on Cognizant's updated
financial framework and capital deployment priorities, including
the following targets for 2022-2024:
- Revenue growth of 8% to 11% annually, in constant
currency1
- Operating margin expansion of 20 to 40 basis points
annually
- Free cash flow expected to be deployed as follows:
-
- 50% to strategic acquisitions
- 25% to share repurchases
- 25% to dividends
Webcast Information
A replay of the webcast and a copy of the presentation is
available on Cognizant's Investor Relations website at
http://investors.cognizant.com.
About Cognizant
Cognizant (Nasdaq: CTSH) engineers modern businesses. We help
our clients modernize technology, reimagine processes and transform
experiences so they can stay ahead in our fast-changing world.
Together, we're improving everyday life. See how at
www.cognizant.com or @cognizant.
Forward-Looking Statements
This press release includes statements that 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 to risks,
uncertainties, and assumptions as to future events that may not
prove to be accurate. These statements include, but are not limited
to, express or implied forward-looking statements relating to our
expectations regarding our strategy, financial framework, capital
deployment priorities and future financial results. These
statements are neither promises nor guarantees, but are subject to
a variety of risks and uncertainties, many of which are beyond our
control, which could cause actual results to differ materially from
those contemplated in these forward-looking statements. Existing
and prospective investors are cautioned not to place undue reliance
on these forward-looking statements, which speak only as of the
date hereof. Factors that could cause actual results to differ
materially from those expressed or implied include general economic
conditions, the competitive and rapidly changing nature of the
markets we compete in, the competitive marketplace for talent and
its impact on employee recruitment and retention, legal,
reputational and financial risks resulting from cyberattacks, the
impact of and effectiveness of business continuity plans during the
COVID-19 pandemic, changes in the regulatory environment, including
with respect to immigration and taxes, and the other factors
discussed in our most recent Annual Report on Form 10-K and other
filings with the Securities and Exchange Commission. Cognizant
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events,
or otherwise, except as may be required under applicable securities
law.
About Non-GAAP Financial Measures
To supplement our financial results presented in accordance with
GAAP, this press release includes references to the following
measures defined by the Securities and Exchange Commission as
non-GAAP financial measures: free cash flow and constant currency
revenue growth. These non-GAAP financial measures are not based on
any comprehensive set of accounting rules or principles and should
not be considered a substitute for, or superior to, financial
measures calculated in accordance with GAAP, and may be different
from non-GAAP financial measures used by other companies. In
addition, these non-GAAP financial measures should be read in
conjunction with our financial statements prepared in accordance
with GAAP.
Free cash flow is defined as cash flows from operating
activities net of purchases of property and equipment. Constant
currency revenue growth is defined as revenues for a given period
restated at the comparative period's foreign currency exchange
rates measured against the comparative period's reported
revenues.
We believe providing investors with an operating view consistent
with how we manage the company provides enhanced transparency into
our operating results. For our internal management reporting and
budgeting purposes, we use various GAAP and non-GAAP financial
measures for financial and operational decision-making, to evaluate
period-to-period comparisons, to determine portions of the
compensation for our executive officers and for making comparisons
of our operating results to those of our competitors. Therefore, it
is our belief that the use of non-GAAP financial measures provides
a meaningful supplemental measure for investors to evaluate our
financial performance. Accordingly, we believe that the
presentation of our non-GAAP measures, when read in conjunction
with our reported GAAP results, can provide useful supplemental
information to our management and investors regarding financial and
business trends relating to our financial condition and results of
operations.
A limitation of using non-GAAP financial measures versus
financial measures calculated in accordance with GAAP is that
non-GAAP financial measures do not reflect all of the amounts
associated with our operating results as determined in accordance
with GAAP and may exclude costs that are recurring. In addition,
other companies may calculate non-GAAP financial measures
differently than us, thereby limiting the usefulness of these
non-GAAP financial measures as a comparative tool. We compensate
for these limitations by providing specific information regarding
the GAAP amounts excluded from our non-GAAP financial measures to
allow investors to evaluate such non-GAAP financial measures.
Investor Contact:
Tyler Scott, Vice President,
Investor Relations
551-220-8246
tyler.scott@cognizant.com
Media Contact:
Jeff DeMarrais, Vice President,
Corporate Communications
475-223-2298
Jeff.DeMarrais@cognizant.com
1 A full reconciliation of constant currency revenue
growth to the corresponding GAAP measure on a forward-looking basis
cannot be provided without unreasonable efforts, as Cognizant is
unable to predict changes in foreign currency exchange rates. See
"About Non-GAAP Financial Measures" for more information.
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SOURCE Cognizant