Slide 1: Third Quarter 2024 Results
Third Quarter 2024 Results November 5th, 2024
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, and free cash flow, each excluding the effects of special items, and adjustments to GAAP and other non-GAAP measures
Slide 4: Kate Johnson, President & CEO
KATE JOHNSON President & CEO
Slide 5: Executing Lumen's Transformation: Key Takeaways
Executing Lumen's Transformation Key Takeaways Operational Building the Cloudifying Turnaround Backbone for AI Telecom Improving Sales Execution, Big Tech chooses Lumen to Driving NaaS adoption and Enhancing the Customer partner in the race for AI positioning the company for Experience & Reducing Co
Slide 6: Private Connectivity Fabric: Architecture for AI Connectivity
Private Connectivity Fabric | Architecture for AI Connectivity SM PLATFORM (UI, API) Differentiated Customer Experience (CX) and Consumption Model (NaaS) A simple, unified, digital CX giving enterprise customers network capabilities needed for today’s applications PCFSM Edge Fabric Security Voice Wa
Slide 7: Lumen's View: Phases of the AI Story
Lumen’s View: 3 Phases of the AI Story Yesterday’s network can’t support tomorrow’s AI economy! AI needs data Data needs data centers Data centers need • To train its algorithms • In the public cloud • Power • To understand your • At the edge • Space business • On Prem • Water for cooling • To offer
Slide 8: Cloudifying Telecom – Lumen is Different
Cloudifying Telecom – Lumen is Different Natively Recognized as Market Pole Integrating Fiber Industry Leader Position Network Cloud companies choose Lumen for our AI ecosystem – Digital platform enabling PCF architecture, world class enterprises to design, price, fiber network, and ExaSwitch order
Slide 9: Chris Stansbury, EVP & CFO
CHRIS STANSBURY EVP & CFO
Slide 10: 3Q24 Year-Over-Year Total Reported Revenue Bridge
3Q24 Year-Over-Year Total Reported Revenue Bridge ~32% of Decline Due to Divestitures, Net of Post-Closing Commercial Agreements and CDN Contracts Sold Y/Y% ~32%(2) ($ in millions) 3Q24 Change $3,641 $23 Business $2,536 (12.7%) ($134) Mass Markets $685 (6.9%) Total $3,221 (11.5%) (1) The Company bel
Slide 11: 3Q24 Total Reported Revenue
3Q24 Total Reported Revenue Maintained Growth in N.A. Enterprise Grow Products Y/Y% Q/Q% ($ in millions) 3Q24 Change Change Y/Y% Q/Q% Large Enterprise $839 (8.2%) 0.2% ($ in millions) 3Q24 % Total Change Change Mid-Market Enterprise $471 (6.9%) (1.5%) Grow $778 4.0% 2.2% 45% Public Sector $427 (4.0%
Slide 12: 3Q24 Mass Markets Revenue
3Q24 Mass Markets Revenue Fiber Broadband Revenue Growth Accelerated Fiber Revenue Contribution to Total Broadband Y/Y% Revenue ($ in millions) 3Q24 % Total 40% Change 38% Fiber Broadband $190 16.6% 28% 35% 32% 33% Other Broadband(1) $282 (17.3%) 41% Voice & Other $213 (8.2%) 31% Total Mass Markets
Slide 13: 3Q24 Mass Markets Broadband Metrics
3Q24 Mass Markets Broadband Metrics(1) Strongest Ever Reported Fiber Net Subscriber Additions Y/Y Q/Q 131K Fiber 3Q24 Fiber-Enabled Location Adds Q/Q Change Change Enabled Locations 4.05M 522K 131K 43K Subscribers 1.03M 139K 43K Y/Y Q/Q Net Adds Other 3Q24 Change Change Enabled Locations 17.87M (335
Slide 14: 3Q24 Year-Over-Year Adjusted EBITDA Bridge
3Q24 Year-Over-Year Adjusted EBITDA Bridge ~31% of Decline Due to Divestitures, Net of Post-Closing Commercial Agreements and CDN Contracts Sold Y/Y% ($ in millions) 3Q24 Change ~31%(2) Total Revenue $3,221 (11.5%) $2 Adjusted EBITDA $899 (14.3%) ($31) Adj. EBITDA Margin 27.9% (90 bps) (1) The Compa
Slide 15: Consolidated Cash Flow Summary
Consolidated Cash Flow Summary Key Metrics ($ in millions) 3Q24 Cash Flow from Operations $2,032 Capital Expenditures $850 Free Cash Flow $1,198 Net Cash Interest $288 14
Slide 16: 2024 Financial Outlook
2024 Financial Outlook Slide Title Metric(1)(2) Outlook Adjusted EBITDA $3.9 to $4.0 billion Free Cash Flow(3)(4) $1.2 to $1.4 billion Net Cash Interest $1.15 to $1.25 billion Capital Expenditures $3.1 to $3.3 billion Cash Income Taxes/(Refund)(4) ($200) to ($300) million (1) For definitions of non-
Slide 17: LUMcN
LUMcN