Harmonic Inc. · NASDAQ:HLIT

Harmonic — Q4 2022 Earnings Presentation

25 slides from Harmonic's earnings presentation, Jan 30, 2023

Slide 1: Fourth Quarter 2022 Earnings Conference Call
FOURTH QUARTER 2022 EARNINGS CONFERENCE CALL Patrick Harshman, President & CEO Sanjay Kalra, CFO January 30, 2023 ©2023 Harmonic Inc. All rights reserved worldwide. 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS During the course of this presentation, we will provide projections and other forward-looking statements regarding future events or the future financial performance of Harmonic, including expectations concerning our business strategy for 2023 and beyond, and our Q1 and ful
Slide 3: Q4 2022 Highlights
Q4 2022 HIGHLIGHTS Corporate Broadband Video Record Revenue Revenue up 38%* SaaS Revenue up 51%* $164M Strong Market Momentum and Execution * Year over year ©2023 Harmonic Inc. All rights reserved worldwide. 3
Slide 4: Broadband Segment Update
BROADBAND SEGMENT UPDATE EXCELLENT Q4 RESULTS • Revenue $96.0 million, up 4% sequentially, 38% year over year • Gross margin 47.6%, adjusted EBITDA 21.0% • Deployed with 91 customers, up 25% year over year EXECUTING MULTI-YEAR STRATEGY • Strong new customer pipeline • Market-leading DOCSIS 4.0 and F
Slide 5: Video Segment Update
VIDEO SEGMENT UPDATE EXCELLENT Q4 RESULTS • Revenue $68.3 million, up 7% sequentially, down 21% year over year • SaaS revenue $10.5 million, up 51% year over year • Gross margin 59.9%, adjusted EBITDA 9.3% EXECUTING MULTI-YEAR STRATEGY • SaaS growth driven by Tier 1 expansions and new live sports wi
Slide 7: Q4 and FY 2022 Financial Highlights
Q4 AND FY 2022 FINANCIAL HIGHLIGHTS* Q4 2022 • Record revenue $164.3 million, up 5.5% year over year • Gross margin 52.7%, up 220 basis points year over year • Adj. EBITDA Margins 16.2%, up 88 basis points year over year • EPS $0.17, up 6.3% year over year • Cash $89.6 million after repayment of $37
Slide 8: Q4 2022 Revenue & Gross Margin Highlights
Q4 2022 REVENUE & GROSS MARGIN HIGHLIGHTS* Financial Metric Q4 Q3 Q4 Q4/Q3 Q4 Y/Y ($ Millions) 2022 2022 2021 Change Change Total Net Revenue $164.3 $155.7 $155.8 5.5% 5.5% Broadband Revenue $96.0 $91.9 $69.7 4.5% 37.7% Video Revenue $68.3 $63.8 $86.1 7.0% (20.7)% Gross Margin (%) 52.7% 50.9% 50.5%
Slide 9: Q4 2022 Earnings and Bookings Highlights
Q4 2022 EARNINGS AND BOOKINGS HIGHLIGHTS* Financial Metric Q4 Q3 Q4 Q4/Q3 Q4 Y/Y ($ Millions | except EPS) 2022 2022 2021 Change Change Operating Expenses $63.0 $61.0 $58.0 3.2% 8.5% Adj. EBITDA $26.6 $21.2 $23.8 25.3% 11.5% Broadband Adj. EBITDA $20.2 $16.9 $6.7 19.8% 201.3% Video Adj. EBITDA $6.4
Slide 10: Q4 2022 Balance Sheet & Cash Flow Highlights
Q4 2022 BALANCE SHEET & CASH FLOW HIGHLIGHTS Financial Metric Q4 Q3 Q4 ($ Millions) 2022 2022 2021 Cash $89.6 $105.3 $133.4 Cash Provided by (used in) Operations $19.4 $(8.2) $7.4 Accounts Receivable $108.4 $105.6 $88.5 DSO 59 61 51 Inventory $120.9 $99.0 $71.2 Inventory Days 140 116 83 Backlog and
Slide 11: Full Year 2023 Financial Guidance
FULL YEAR 2023 FINANCIAL GUIDANCE* Financial Metric Broadband Video Total Total Revenue ($M) $445 - $465 $250 - $270 $695 - $735 Gross Margin % 45.0% - 46.0% 58.5% - 60.5% 49.8% - 51.3% Gross Profit ($M) $200 - $214 $146 - $163 $346 - $377 Operating Expenses ($M) $120 - $123 $140 - $144 $260 - $267
Slide 12: Q1 2023 Financial Guidance
Q1 2023 FINANCIAL GUIDANCE* Financial Metric Broadband Video Total Total Revenue ($M) $97 - $102 $55 - $60 $152 - $162 Gross Margin % 45.0% - 46.0% 58.0% - 59.0% 49.7% - 50.8% Gross Profit ($M) $44 - $47 $32 - $35 $76 - $82 Operating Expenses ($M) $29 - $30 $35 - $36 $64 - $66 Adjusted EBITDA ($M) $
Slide 14: Use of Non-GAAP Financial Measures
USE OF NON-GAAP FINANCIAL MEASURES In establishing operating budgets, managing its business performance, and setting internal measurement targets, the Company excludes a number of items required by GAAP. Management believes that these accounting charges and credits, most of which are non-cash or non
Slide 22: 2023 Guidance GAAP to Non-GAAP Reconciliations
2023 GUIDANCE GAAP TO NON-GAAP RECONCILIATIONS (UNAUDITED, IN MILLIONS, EXCEPT EPS AND PERCENTAGES) ©2023 Harmonic Inc. All rights reserved worldwide. 22
Slide 23: Q1 2023 Guidance GAAP to Non-GAAP Reconciliations
Q1 2023 GUIDANCE GAAP TO NON-GAAP RECONCILIATIONS (UNAUDITED, IN MILLIONS, EXCEPT EPS AND PERCENTAGES) ©2023 Harmonic Inc. All rights reserved worldwide. 23

Harmonic — Q4 2022 Earnings Presentation on 6ix

Harmonic — Q4 2022 Earnings Presentation

Slide 1: Fourth Quarter 2022 Earnings Conference Call

Slide 2: Forward-Looking Statements

Slide 3: Q4 2022 Highlights

Slide 4: Broadband Segment Update

Slide 5: Video Segment Update

Slide 6: Financial Results and Outlook

Slide 7: Q4 and FY 2022 Financial Highlights

Slide 8: Q4 2022 Revenue & Gross Margin Highlights

Slide 9: Q4 2022 Earnings and Bookings Highlights

Slide 10: Q4 2022 Balance Sheet & Cash Flow Highlights

Slide 11: Full Year 2023 Financial Guidance

Slide 12: Q1 2023 Financial Guidance

Slide 13: Wrap-Up & Q&A

Slide 14: Use of Non-GAAP Financial Measures

Slide 15: Q4 2022 GAAP to Non-GAAP Reconciliations

Slide 16: Q3 2022 GAAP to Non-GAAP Reconciliations

Slide 17: Q4 2021 GAAP to Non-GAAP Reconciliations

Slide 18: FY 2022 GAAP to Non-GAAP Reconciliations

Slide 19: FY 2021 GAAP to Non-GAAP Reconciliations

Slide 20: Adj. EBITDA Reconciliations

Slide 21: Adj. EBITDA Reconciliations

Slide 22: 2023 Guidance GAAP to Non-GAAP Reconciliations

Slide 23: Q1 2023 Guidance GAAP to Non-GAAP Reconciliations

Slide 24: 2023 Adj. EBITDA Guidance Reconciliations

Slide 25: Thank You