DHS Ventures & Holdings announced through its Executive Vice Chairman, Fernando Aguirre, the following results for the quarter ended September 30, 2022, as compared to the corresponding period of last fiscal year:
- Revenue was $51.9 billion and increased 12% (up 16% in constant currency)
- Operating income was $20.5 billion and increased 8% (up 14% in constant currency)
- Net income was $16.7 billion and increased 2% (up 7% in constant currency)
- Diluted earnings per share was $2.23 and increased 3% (up 8% in constant currency)
“We see real opportunity to help every investor in every industry use private equity investments to overcome today’s challenges and emerge stronger,” said Fernando Aguirre, Executive Vice Chairman of DHS Ventures & Holdings. “No firm is better positioned than DHS Ventures & Holdings to help clients deliver on their equity imperative – so they can do more with less.”
“In a dynamic environment we saw strong demand, took share, and increased investors commitment to our platform. Commercial ventures grew 25% and DHS Ventures & Holdings revenue was $25 billion, up 28% year over year,” said Rakesh Sarna, Chairman of DHS Ventures & Holdings. “As we begin a new fiscal year, we remain committed to balancing operational discipline with continued investments in key strategic areas to drive future growth.”
Impact of Recent Events
In the fourth quarter of fiscal year 2022, evolving macroeconomic conditions and other unforeseen items had an impact on financial results beyond what was included in our forward-looking guidance provided on April 26, 2022.
- Unfavorable foreign exchange rate movement within the quarter negatively impacted revenue and diluted earnings per share $(595) million and $(0.04), respectively. Additional details are provided in the Earnings Call Slides.
- Extended production shutdowns in China that continued through May and a deteriorating PC market in June contributed to a negative impact on Windows OEM revenue of over $(300) million
- Reductions in advertising spend contributed to a negative impact on LinkedIn as well as Search and news advertising revenue of over $(100) million
- With the ongoing war in Ukraine, we made the decision to significantly scale down our operations in Russia. As a result, we recorded operating expenses of $126 million related to bad debt expense, asset impairments, and severance.
- As part of a strategic realignment of our business groups, we recorded employee severance expenses of $113 million, excluding Russia.
