Ribbon Communications Inc. · NASDAQ:RBBN
Ribbon Communications — Q4 2024 Earnings Presentation
21 slides from Ribbon Communications's earnings presentation, Feb 12, 2025
Slide 1: Fourth Quarter and Full Year 2024 Results
Ribbon Communications Fourth Quarter and Full Year 2024 Results February 12, 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: Fourth Quarter and 2024 Business Highlights | Consolidated
Fourth Quarter and 2024 Business Highlights | Consolidated Q4 FY 2024 Revenue Revenue Growth $251M $834M U.S. Tier 1 Service Provider +11% Growth YoY +1% Growth YoY Enterprise and Federal U.S. and APAC Gross Margin Gross Margin 58%; +120 bps YoY 56%; +280 bps YoY Adj. EBITDA1 Adj. EBITDA1 Customer H
Slide 4: Key Financial Trends
Key Financial Trends1 Cloud & Edge Revenue IP Optical Networks Revenue Adjusted EBITDA1 Adj. EBITDA Margin % $251M ($ millions) 2024 $119M $226M 2023 $91M $211M $210M $203M $193M $87 $43 $55 $186M $180M $28 $30 $23 $12 $22 $104 22.1% $85 $82 $87 ($2) $72 $82 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 $
Slide 5: Non-GAAP Segment Financial Highlights | Cloud & Edge
Non-GAAP1 Segment Financial Highlights | Cloud & Edge +35% Revenue Growth Adjusted EBITDA1 U.S. Tier 1 Service Provider 2x Growth Year over Year 2024 $141M ($ millions) U.S. Defense Agencies Voice Modernization Awards Q4 2023 $121M +75% Adj. EBITDA1 Growth YoY $60 $35 $32 $34 $38 Record $60M Adj. EB
Slide 6: Non-GAAP Segment Financial Highlights | IP Optical Networks
Non-GAAP1 Segment Financial Highlights | IP Optical Networks Regional Growth India +10% YoY Adjusted EBITDA1 APAC +60% YoY ($ millions) U.S. and Europe +5% YoY Q4 $8 No Shipments to E. Europe ($4) ($6) ($4) ($8) ($4) ($12) ($23) Gross Margin1 2023 ($31M) 2024 ($22M) 40% Reflects changes in geographi
Slide 7: Fourth Quarter 2024 Key Metrics | Consolidated
Fourth Quarter 2024 Key Metrics | Consolidated Revenue Mix Profitability Balance Sheet Cash Flow Enterprise 41%2 58% Gross Margin1 Senior Term Loan Debt4 $348M Cash Position @ $90M Service Provider 59%2 Full Year Operating Expenses1 Outstanding Revolver Loan4 $0M $62M Cash from Operations 28% Mainte
Slide 8: Fourth Quarter and Full Year 2024 Non-GAAP Financial Summary
Fourth Quarter and Full Year 2024 Non-GAAP1 Financial Summary 4Q23 3Q24 4Q24 2023 2024 Revenue $226M $210M $251M $826M $834M Non-GAAP Gross Margin1 57% 55% 58% 53% 56% Non-GAAP Opex1 $90M $90M $94M $363M $361M Non-GAAP Operating 17% 13% 21% 9% 13% Margin1 Non-GAAP Adjusted $43M $30M $55M $91M $119M
Slide 9: Key Trends & Outlook
Key Trends & Outlook &} riddon
Slide 10: Ribbon's Strategic Pillars
Ribbon’s Strategic Pillars Operational Integration Cross-Selling and Tier 1 Growth Leveraging combined segment portfolio to Deepen relationships with global Cloud & Edge provide unique innovative secure customer base as Voice Modernization investments communications solutions. accelerate. Leverage I
Slide 11: Powering Voice Network Transformation
Powering Voice Network Transformation 35% Growth in Cloud & Edge Q4’24 Revenue Driven by: Global Wins in Tier 1 & 2 Service 1 Providers & MSOs 2 USA Federal Government & DoD $7.4B TAM thru 2028* European MNOs 3 4 Multi-year Enterprise Agreements 05 2025 *2025-2028 Global Total Addressable Market – E
Slide 12: Mission Critical Defense Networks - Secure Solutions for a Safer World
Mission Critical Defense Networks - Secure Solutions for a Safer World Solutions Customers Always on Never fail Brand Awareness Growth © 2025 Ribbon | Public 12
Slide 13: Network Automation through Practical AI
Network Automation through Practical AI • Build Network Knowledge Bases • Create Chatbots for Particular Functions or Networks • Integrate Knowledge into Workflows and Agents • Combine Agents into Large Apps Practical AI Across All Phases Design Deploy Manage Optimize Troubleshoot Innovate Network L
Slide 14: Improving 2025 Operating Environment
Improving 2025 Operating Environment Federal and Shifting Network Fiber Economic Defense Secure Competitive Modernization Investment Recovery Communications Environment ▪ Legacy TDM Voice ▪ Major voice ▪ Robust public and ▪ Industry consolidation is ▪ Inflation pressures Switch replacement and moder
Slide 15: First Quarter and Full Year 2025 Business Outlook
First Quarter and Full Year 2025 Business Outlook 1Q24 FY24 1Q25 FY25 (Actual) (Actual) (Outlook) (Outlook) Revenue $180M $834M $185M to $195M $870M to $890M Non-GAAP Gross Margin1 55.1% 55.9% 53.0% to 53.5% 54.0% to 55.0% Non-GAAP Adjusted EBITDA1 $12M $119M $12M to $18M $130M to $140M 1. Please se
Slide 16: Appendix
Appendix &} riddon
Slide 17: Ribbon Key Revenue Statistics
Ribbon Key Revenue Statistics USD Millions except for percentages 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 Revenue Product 93 117 109 126 445 88 99 112 148 447 Service 93 93 95 100 381 92 93 98 103 387 Total Revenue 186 211 203 226 826 180 193 210 251 834 % of Total Revenue: Revenue Mix Pro
Slide 18: Quarterly Non-GAAP Segment Trend | Cloud & Edge
Quarterly Non-GAAP1 Segment Trend | Cloud & Edge CLOUD & EDGE – 2023 CLOUD & EDGE - 2024 1Q 2Q 3Q 4Q FY23 1Q 2Q 3Q 4Q FY24 Revenue $114M $125M $116M $122M $478M $102M $111M $128M $165M $505M vs Prior Year +4% (9%) (7%) (11%) (6%) (11%) (12%) +11% +35% +6% Non-GAAP Gross 61% 67% 68% 68% 66% 66% 66% 6
Slide 19: Quarterly Non-GAAP Segment Trend | IP Optical Networks
Quarterly Non-GAAP1 Segment Trend | IP Optical Networks IP OPTICAL NETWORKS – 2023 IP OPTICAL NETWORKS – 2024 1Q 2Q 3Q 4Q FY23 1Q 2Q 3Q 4Q FY24 Revenue $72M $85M $87M $104M $349M $78M $82M $82M $87M $329M vs Prior Year +13% +24% +6% +7% +12% +9% (4%) (6%) (17%) (6%) Non-GAAP Gross 27% 31% 38% 44% 36
Slide 20: Fourth Quarter and Full Year 2024 GAAP Financial Summary
First FourthQuarter Quarterand Full and FullYear Year2024 2024GAAP GAAPFinancial Financial Summary Summary 4Q23 3Q24 4Q24 2023 2024 Revenue $226M $210M $251M $826M $834M Gross Margin 54% 52% 56% 49% 53% Operating Expenses $105M $111M $107M $432M $423M Income (loss) from $17M ($1M) $33M ($24M) $17M o
Slide 21: 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 21
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