Lumen Technologies, Inc. · NYSE:LUMN
Lumen Technologies — Q1 2024 Earnings Presentation
17 slides from Lumen Technologies's earnings presentation, Apr 30, 2024
Slide 1: First Quarter 2024 Results
First Quarter 2024 Results APRIL 30, 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: Strengthening Our Balance Sheet
Strengthening Our Balance Sheet(1) Completed TSA Transactions Addressing Over $15 Billion in Debt, Extending Over $10 Billion In Debt Maturities Through 2027 and Securing $2.3 Billion in New Liquidity Pre-TSA Debt Maturity Profile Post-TSA Debt Maturity Profile $11.6 $1.4 Level 3 Lumen and Qwest ($
Slide 6: Executing Lumen's Transformation
Executing Lumen's Transformation Slide Title Disrupting Traditional Telecom & Powering the Digital Economy Improving Driving Commercial Innovating for Financial Health Excellence Growth Completed TSA Improves Securing the Base by Cloudifying telecom and Capital Structure & Improving Sales Execution,
Slide 7: The Lumen Digital Platform
The Lumen Digital Platform Differentiated Customer Experience (CX) A simple, unified, digital CX giving enterprise customers network capabilities needed for today’s applications NaaS ExaSwitch Edge Fabric Security Digital, Dynamic Friction Free, High Capacity Ubiquity & Proximity Private & Secure Ex
Slide 8: 1Q24 Mass Markets Highlights
1Q24 Mass Markets Highlights 129K 36K +67 Fiber-Enabled Fiber Net Net Promotor Locations Adds Score Pacing to Annual Target Best Ever Reported Up Sequentially & Y/Y 7 © 2024 Lumen Technologies. All Rights Reserved.
Slide 9: Chris Stansbury, EVP & CFO
CHRIS STANSBURY EVP & CFO
Slide 10: Year-Over-Year Total Reported Revenue Bridge
1Q24 Year-Over-Year Total Reported Revenue Bridge ~34% of Decline Due to Divestitures, Net of Post-Closing Commercial Agreements and CDN Contracts Sold Y/Y% ~34%(2) ($ in millions) 1Q24 Change $3,738 $15 Business $2,591 (12.7%) ($139) Mass Markets $699 (9.2%) Total $3,290 (12.0%) (1) The Company bel
Slide 11: Total Reported Revenue
1Q24 Total Reported Revenue Maintained Growth in N.A. Enterprise Grow Products Y/Y% Q/Q% ($ in millions) 1Q24 Change Change Large Enterprise $858 (5.8%) (4.0%) Y/Y% Q/Q% ($ in millions) 1Q24 % Total Change Change Mid-Market Enterprise $486 (7.1%) (3.0%) Grow $759 3.3% 0.4% 43% Public Sector $420 (2.
Slide 12: Mass Markets Revenue
1Q24 Mass Markets Revenue Fiber Broadband Revenue Growth Accelerated Fiber Revenue Contribution to Total Broadband Y/Y% 35% Revenue ($ in millions) 1Q24 % Total 33% Change 32% Fiber Broadband $170 11.8% 24% 31% 29% Other Broadband(1) $315 (14.6%) 45% Voice & Other $214 (14.1%) 31% Total Mass Markets
Slide 13: Mass Markets Broadband Metrics
1Q24 Mass Markets Broadband Metrics(1) Strongest Ever Reported Fiber Net Subscriber Additions Y/Y Q/Q 129K Fiber 1Q24 Fiber-Enabled Location Adds Q/Q Change Change Enabled Locations 3.8M 526K 129K Subscribers 952K 96K 36K >+60 Average NPS score on Y/Y Q/Q Other 1Q24 Quantum Fiber Change Change Enabl
Slide 14: Year-Over-Year Adjusted EBITDA Bridge
1Q24 Year-Over-Year Adjusted EBITDA Bridge ~22% of Decline Due to Divestitures, Net of Post-Closing Commercial Agreements and CDN Contracts Sold Y/Y% ($ in millions) 1Q24 Change ~22%(2) Total Revenue $3,290 (12.0%) $2 ($43) Adjusted EBITDA $977 (21.9%) Adj. EBITDA Margin 29.7% (380 bps) (1) The Comp
Slide 15: Consolidated Cash Flow Summary
Consolidated Cash Flow Summary Key Metrics ($ in millions) 1Q24 Cash Flow from Operations(1) $1,102 Capital Expenditures $713 Free Cash Flow(1) $518 Net Cash Interest $281 (1) Includes an approximately $700 million tax refund received during the first quarter 2024 14
Slide 16: Reiterated 2024 Financial Outlook
Reiterated 2024 Financial Outlook Slide Title Metric(1)(2) Outlook Adjusted EBITDA $4.1 to $4.3 billion Free Cash Flow(3)(4) $100 to $300 million Net Cash Interest $1.25 to $1.35 billion Capital Expenditures $2.7 to $2.9 billion Cash Income Taxes/(Refund)(4) ($200) to ($300) million (1) For definiti
Slide 17: LUMcN
LUMcN