Vertiv Holdings Co (NYSE:VRT) Q2 2023 Earnings Conference Call August 2, 2023 11:00 AM ET

Company Participants

Lynne Maxeiner – Vice President-Investor Relations

Dave Cote – Executive Chairman

Giordano Albertazzi – Chief Executive Officer

David Fallon – Chief Financial Officer

Conference Call Participants

Nigel Coe – Wolfe Research

Andy Kaplowitz – from Citi Group

Amit Daryanani – Evercore

Lance Vitanza – TD Cowen

Jeff Sprague – Vertical Research

Nicole DeBlase – Deutsche Bank

Steve Tusa – JP Morgan

Andrew Obin – Bank of America

Mark Delaney – Goldman Sachs

Operator

Good morning. My name is Lauren, and I will be your conference operator today. At this time, I would like to welcome everyone to Vertiv's Second Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. Please note that this call is being recorded.

I would now like to turn the program over to your host for today's conference call, Lynne Maxeiner, Vice President of Investor Relations.

Lynne Maxeiner

Great. Thank you, Lauren. Good morning, and welcome to Vertiv's second quarter 2023 earnings conference call. Joining me today are Vertiv's Executive Chairman, Dave Cote; Chief Executive Officer; Giordano Albertazzi; and Chief Financial Officer, David Fallon.

Before we begin, I would like to point out that during the course of this call, we will make forward-looking statements regarding future events, including the future financial and operating performance of Vertiv. These forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. We refer you to the cautionary language included in today's earnings release and you can learn more about these risks in our annual and quarterly reports and other filings made with the SEC.

Any forward-looking statements that we make today are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.

During this call, we will also present both GAAP and non-GAAP financial measures. Our GAAP results and GAAP to non-GAAP reconciliations can be found in our earnings press release and in the investor slide deck found on our website at investors.vertiv.com.

With that, I'll turn the call over to Executive Chairman, Dave Cote.

Dave Cote

Well, these last few quarters have been a lot more enjoyable to report. We had another strong quarter of performance at Vertiv, which positions us very well to achieve our significantly increased 2023 outlook. Adjusted free cash flow, adjusted operating profit, sales and margins all performed very well and operational execution continues to improve. We've raised our full year guidance because of our strong first half performance. We also have the very pleasant effect of a strengthening balance sheet. The data center end market continues to look very healthy, and there is an incremental tailwind from AI coming. And that tailwind should provide additional opportunities over many years for Vertiv because our technology will matter.