Lumen Technologies, Inc. · NYSE:LUMN
Lumen Technologies — Q1 2023 Earnings Presentation
13 slides from Lumen Technologies's earnings presentation, May 2, 2023
Slide 1: First Quarter 2023 Results
First Quarter 2023 Results May 2, 2023 Issued: May 2, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Except for historical and factual information, the matters set forth in this presentation and other of our oral or written statements identified by words such as “estimates,” “expects,” “anticipates,” “believes,” “plans,” “intends,” “will,” and similar expressions are forw
Slide 3: Non-GAAP Measures
Non-GAAP Measures This presentation includes certain historical and forward-looking non-GAAP financial measures, including but not limited to adjusted EBITDA, adjusted EBITDA margin, net-debt-to-adjusted- EBITDA and free cash flow, each excluding the effects of special items, and adjustments to GAAP
Slide 4: Develop Customer Obsession, Innovate & Invest for Growth
DEVELOP CUSTOMER BUILD A RELIABLE RADICALLY SIMPLIFY FURTHER DEVELOP OBSESSION, INNOVATE EXECUTION ENGINE OUR COMPANY OUR CULTURE & INVEST FOR GROWTH New Products: Enterprise: Stop List: Awards: • Offering Lumen SASE • Added 5% more Mid-Market new • Internally crowd-sourced list of • Newsweek, 2023
Slide 5: 1Q23 Highlights
1Q23 Highlights Strengthening the Balance Sheet While Executing on Growth Plan Over Quantum Grow +3.4% Enablement $600 million Fiber 29% Q/Q Adds ~120K Debt Reduction Through Revenue Contribution to Business Product Revenue Q/Q Increase in Exchange Offer Total Broadband Revenue Quantum Fiber Enabled
Slide 6: Year-Over-Year Total Reported Revenue Bridge
1Q23 Year-Over-Year Total Reported Revenue Bridge ~80% of Decline Due to CAF II Release, Post-Closing Commercial (2) Agreements and Divestitures ~80% $28 • Business: -13.1% -$716 • Mass Markets: -38.7% • Total: -20.1% (1) (1) The Company believes that these figures will allow analysts and investors
Slide 7: Total Reported Revenue
1Q23 Total Reported Revenue Improved Performance in Grow Products and Enterprise Channels Q/Q% Revenue ($ in millions) 1Q23 % Total Change Revenue ($ in Q/Q% Direct 1Q23 % Total Enterprise Channels $2,139 (1.4%) 57.2% millions) Change Margin(2) Large Enterprise $1,194 (1.9%) 31.9% Grow $1,128 3.4% 3
Slide 8: Mass Markets Revenue
1Q23 Mass Markets Revenue Fiber Contribution Ramping Fiber Revenue Contribution to Total Broadband Q/Q% Revenue ($ in millions) 1Q23 % Total Change 29% 28% Fiber Broadband $152 2.7% 19.4% 22% Other Broadband(1) $369 (2.1%) 47.2% 20% 19% 18% 18% 17% Voice and Other $261 (3.3%) 33.4% 16% Total Mass Ma
Slide 9: Mass Markets Broadband Metrics
1Q23 Mass Markets Broadband Metrics Fiber Builds Accelerate in 1Q23 As Quantum Ramps Up Y/Y Q/Q Fiber(1) 1Q23 Change(2) Change ~$60 >+60 Enabled Locations 3.3M 595K 120K Subscribers 856K 96K 24K Fiber Fiber Other(1) 1Q23 Y/Y Change(2) Q/Q Change ARPU ~120K NPS Enabled Locations 18.5M (469K) (288K) S
Slide 10: Year-Over-Year Adjusted EBITDA Bridge
1Q23 Year-Over-Year Adjusted EBITDA Bridge 73% of Decline Due to CAF II Release, Post-Closing Commercial Agreements and Divestitures (2) 73% -$48 Q/Q ($ in millions) 1Q23 Change -$415 Total Revenue $3,738 (1.6%) Adjusted EBITDA $1,251 (10.2%) Adj. EBITDA Margin 33.5% (320bps) (1) (1) The Company bel
Slide 11: Consolidated Cash Flow Summary
Consolidated Cash Flow Summary Key Metrics ($ in millions) 1Q23 Cash Flow from Operations $595 Capital Expenditures $640 Free Cash Flow(1) ($75) Net Cash Interest $350 (1) Includes the impact of $90 million in cash tax payments related to our divestitures completed on August 1, 2022 and October 3, 2
Slide 12: Updated 2023 Financial Outlook
Updated 2023 Financial Outlook Metric(1)(2) Current Outlook(3) Previous Outlook(3) Adjusted EBITDA $4.6 to $4.8 billion $4.6 to $4.8 billion Free Cash Flow(4)(5) $0 to $200 million $0 to $200 million Net Cash Interest $1.1 to $1.2 billion $1.1 to $1.2 billion GAAP Interest Expense $1.200 billion $1.
Slide 13: Q&A
Q&A 13 Issued: May 2, 2023