Ribbon Communications Inc. · NASDAQ:RBBN
Ribbon Communications — Q1 2025 Earnings Presentation
20 slides from Ribbon Communications's earnings presentation, Apr 29, 2025
Slide 1: Ribbon Communications First Quarter 2025 Results
Ribbon Communications First Quarter 2025 Results April 29, 2025 © 2025 Ribbon | Public 1
Slide 2: Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures
Note Regarding Forward-Looking Statements and Non-GAAP Financial Measures This presentation contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties. All statements other than state
Slide 3: First Quarter 2025 Business Overview
First Quarter 2025 Business Overview Bruce McClelland, President & CEO John Townsend, Executive Vice President & CFO
Slide 4: First Quarter 2025 Business Highlights | Consolidated
First Quarter 2025 Business Highlights | Consolidated Revenue $181M Growth +1% Growth YoY Global Service Provider Professional Services Gross Margin India, APAC and U.S. 49% Rural Broadband and Critical Infrastructure Product & Services Backlog up 35% vs 2024 Adj. EBITDA1 $6M Customer Highlights Ver
Slide 5: Key Financial Trends
Key Financial Trends1 Cloud & Edge Revenue IP Optical Networks Revenue Adjusted EBITDA1 $251M Adj. EBITDA Margin % ($ millions) $226M $211M $210M $203M $87 $55 $193M $180M $181M $22 $30 $6 $12 $104 $85 $82 $87 $82 $74 1Q24 2Q24 3Q24 4Q24 1Q25 $78 $165 3.2% $128 $108 Gross Margin1 $122 $111 $125 $116
Slide 6: Non-GAAP Segment Financial Highlights | Cloud & Edge
Non-GAAP1 Segment Financial Highlights | Cloud & Edge Revenue Growth Adjusted EBITDA1 +6% Product & Services Growth +17% Year over Year ($ millions) Global Service Provider Growth ~20% Year over Year Delayed Federal Opportunities $60 Regional Growth $26 $38 $17 $20 N. America +8% Year over Year EMEA
Slide 7: Non-GAAP Segment Financial Highlights | IP Optical Networks
Non-GAAP1 Segment Financial Highlights | IP Optical Networks Regional Trends Adjusted EBITDA1 -6% Overall Revenue Decline Year over Year ($ millions) (Revenue up +25% Year over Year excluding E. Europe) N. America +130% Year over Year India +80% Year over Year ($4) ($4) ($15) ($6) Europe down (13%)
Slide 8: First Quarter 2025 Key Metrics | Consolidated
First Quarter 2025 Key Metrics | Consolidated Revenue Mix Profitability Balance Sheet Cash Flow Enterprise 28%2 49% Gross Margin1 Senior Term Loan Debt4 $347M Cash Position @ $74M Service Provider 72%2 Operating Expenses1 Outstanding Revolver Loan4 $0M ($4M) Cash from Operations 37% Maintenance Reve
Slide 9: First Quarter 2025 Non-GAAP Financial Summary
First Quarter 2025 Non-GAAP1 Financial Summary 1Q24 4Q24 1Q25 Revenue $180M $251M $181M Non-GAAP Gross Margin1 55% 58% 49% Non-GAAP Opex1 $91M $94M $86M Non-GAAP Operating 5% 21% 1% Margin1 Non-GAAP Adjusted $12M $55M $6M EBITDA1 Non-GAAP Diluted EPS1 ($0.01) $0.16 ($0.03) 1. Please see the discussi
Slide 10: Key Market Trends & 2025 Outlook
Key Market Trends & 2025 Outlook
Slide 11: Continued Strength in Key Markets
Continued Strength in Key Markets • Voice Network Modernization to Capture Significant Cost Savings Service Provider • Unified Communications Spending • Adoption of Cloud Technologies • Mobile and Internet Capacity Expansion • Strategic wins for both Cloud & Edge and IP Optical portfolio Government
Slide 12: Ribbon Innovation Driving Future Growth
Ribbon Innovation Driving Future Growth Telco Cloud Transition Hardware Virtualized Cloud Native Apollo 9408 5nm Technology TDM over IP Circuit Emulation MUSE Multi-Layer Automation IP Router NPT 2714 Data Center Interconnect 14.4 Tbps switching capacity Highest Density - 25.6T in 2RU 2025 Lightwave
Slide 13: 2025 Operating Environment
2025 Operating Environment Federal and Shifting Network Fiber Economic Defense Secure Competitive Modernization Investment Trends Communications Environment ▪ Legacy TDM Voice ▪ Major voice ▪ Robust public and ▪ Industry consolidation is ▪ Inflation pressures easing Switch replacement and modernizat
Slide 14: Second Quarter and Full Year 2025 Business Outlook
Second Quarter and Full Year 2025 Business Outlook 2Q24 FY24 2Q25 FY25 (Actual) (Actual) (Outlook) (Unchanged) Revenue $193M $834M $210M to $220M $870M to $890M Non-GAAP Gross Margin1 54.4% 55.9% 53.0% to 53.5% 54.0% to 55.0% Non-GAAP Adjusted EBITDA1 $22M $119M $28M to $32M $130M to $140M 1. Please
Slide 15: Appendix
Appendix &} riddon
Slide 16: Ribbon Key Revenue Statistics
Ribbon Key Revenue Statistics USD Millions except for percentages 1Q24 2Q24 3Q24 4Q24 FY24 1Q25 Revenue Product 88 99 112 148 447 82 Service 92 93 98 103 387 99 Total Revenue 180 193 210 251 834 181 % of Total Revenue: Revenue Mix Product 49% 51% 53% 59% 54% 45% Services 51% 49% 47% 41% 46% 55% Reve
Slide 17: Quarterly Non-GAAP Segment Trend | Cloud & Edge
Quarterly Non-GAAP1 Segment Trend | Cloud & Edge CLOUD & EDGE – 2024 2025 1Q 2Q 3Q 4Q FY24 1Q Revenue $102M $111M $128M $165M $505M $108M vs Prior Year (11%) (12%) +11% +35% +6% +6% Non-GAAP 66% 66% 68% 68% 67% 63% Gross Margin1 Non-GAAP Adjusted $17M $26M $38M $60M $141M $20M EBITDA1 Non-GAAP Adjus
Slide 18: Quarterly Non-GAAP Segment Trend | IP Optical Networks
Quarterly Non-GAAP1 Segment Trend | IP Optical Networks IP OPTICAL NETWORKS – 2024 2025 1Q 2Q 3Q 4Q FY24 1Q Revenue $78M $82M $82M $87M $329M $74M vs Prior Year +9% (4%) (6%) (17%) (6%) (6%) Non-GAAP 41% 39% 36% 40% 39% 28% Gross Margin1 Non-GAAP Adjusted ($6M) ($4M) ($8M) ($4M) ($22M) ($15M) EBITDA
Slide 19: First Quarter 2025 GAAP Financial Summary
First First Quarter and Full Quarter 2025 GAAPYear 2024 GAAP Financial Financial Summary Summary 1Q24 4Q24 1Q25 Revenue $180M $251M $181M Gross Margin 51% 56% 45% Operating Expenses $105M $107M $102M Income (loss) from ($13M) $33M ($20M) operations Other (expense) income, ($14M) ($25M) ($7M) net Net
Slide 20: Thank You
Refer to the supplemental schedules including financial results, key stats, and non-GAAP reconciliations on the investor relations website investors.ribboncommunications.com Thank You © 2025 Ribbon | Public 20
Ribbon Communications — Q1 2025 Earnings Presentation on 6ix