Ceragon Networks Ltd. · NASDAQ:CRNT
Ceragon Networks — Investor Presentation (May 2024)
16 slides from Ceragon Networks's investor presentation, May 2024
Slide 1: The Global Innovator & Leader in 5G Wireless Transport Solutions
Ceragon Networks Ltd Nasdaq: CRNT The Global Innovator & Leader In 5G Wireless Transport Solutions Capitalizing on the 5G Revolution MAY 2024 Nasdaq: CRNT © C e r a g o n N e t w o rPk rs o Lptrdi e. tAalrl y r i&g hCtos nrfei ds e n r vt ei adl || 1 ‹#›
Slide 2: Disclaimer
Disclaimer This presentation contains statements that constitute “forward-looking statements” within the meaning of the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended, and the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such
Slide 3: Investment Highlights
Investment Highlights Profitable, growing & undervalued Truly global connectivity solutions provider ~2,200 customers in 130+ countries • Consistent track record of growth & margin expansion ▪ Q1’24 revenue up 6% NORTH AMERICA INDIA Revenue by Region ▪ Full-Year 2023 revenue up 18% year-over-year •
Slide 4: Wireless Transport
Wireless Transport An increasingly important technology for an optimized network Global Microwave Radio Unit Forecast Wireless Transport 2022 Vs. 2028 Applications • Low deployment cost • Rapid deployment • Wireless Transport delivers high bandwidth, carrier-grade network Government Sector Public Sa
Slide 5: Continuous Innovation & In-house Chipset Development
Continuous Innovation & In-house Chipset Development NEPTUNE Committed to our customers continued long-term success IP-50C, first Ceragon Ceragon Chipset radio to Insight Acquires QUAD CORE support 224 intelligence & Siklu 4GHz MHz channel bandwidth management CHANNELS JUPITER First Modem radio-awar
Slide 6: Comprehensive Solutions to Support All Use Cases
Comprehensive Solutions to Support All Use Cases The Longest INNOVATIVE The Fastest Way to get ultra-high Haul NETWORK Capacity TECHNOLOGY The Widest Flexible Band Microwave Managed Services Backhaul Deep AI Open Network Insight Transport End-to-end Widest Private Network mmW Portfolio Offering Nasd
Slide 7: Market Dynamics
Market Dynamics CUSTOMERS Mainly Tier-1 Market is slightly growing $2.1B COMPETITORS Best-of-Breed High barriers to entry $1.7B TECHNOLOGY Bundled Deals High investment CHIP $3.8B Ceragon leads the Best-of-Breed market by units and MARKET keeps capturing share Low Growth in 14% 2023 Increasing Many
Slide 8: Growth Catalysts
Growth Catalysts Growing demand & increasing diversity, driving growth for wireless transport solutions 5G Buildout & 4G Expansion Rural Broadband (USA) Market shifts $ Billions in FY23 connectivity funding Projected to be spent over the next five years • Growing need for incremental The Great 5G Sh
Slide 9: Ceragon Strategy
Ceragon Strategy New Customers New Opportunities Smaller Service Providers and Private Networks, where price pressure is lower, and margins are higher Revenues These customers also look for end-to-end solutions – Ceragon offers it through its ecosystem and services capabilities Ceragon continues to
Slide 10: Leapfrogging The Industry … Again: System-on-a-Chip
Leapfrogging The Industry … Again Development of System-on-a-Chip platform creates multiyear advantage TODAY SHORT TO MID-TERM MID TO LONG-TERM • Market divided into Generalists • System-on-a-chip platform creates • Chip manufacturers & “Best of Breed” durable competitive advantage may catch up • Ce
Slide 11: Growth & Margin Expansion
Growth & Margin Expansion $100 60% Market demand continued to be strong $90.4 $88.5 $90 $86.2 $87.3 $83.4 50% $78.6 $80 $76.1 $77.8 $75.5 $70.3 $70.7 40% $68.6 Q1 2024: $88.5 Million in Revenue; $70 36.7% 35.5% 35.3% 34.9% 35.1% Market Demand Continues to be Strong $60 31.5% 31.0% 33.1% 34.0% 30% 30
Slide 12: Selected Financial Metrics
SELECTED FINANCIAL METRICS Q1 2024 Geographic Revenue Mix Balance Sheet ($ Millions) Capital Structure APAC 9% Financial Shares Outstanding 87.6M Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Metrics Public Float 65.2M Latin America Cash(1) $26.4 $24.5 $34.0 $28.2 $28.8 12% North America Institutional Ownership 11.
Slide 13: Growth Outlook
Growth Outlook Full-Year Revenue 2024 Outlook • Revenue – $385-405M +11- 17% • Targeting Operating margin (Non-GAAP) of at least +18% YoY YoY 10% at mid point of revenue guidance Long-Term Outlook In millions $500 • Revenue – Targeting $500M in 2026 (previously 2027) $385- following successful integ
Slide 14: Compelling Valuation
Compelling Valuation Undervalued Compared to Peers Ceragon does not report Growth Rate (3-year CAGR, 2021-2024E) EBITDA projections Valuation (as of May 2, 2024) Data from Bloomberg as of 11.2x May 2, 2024 EBITDA CAGR -1.7% 5.5x 36.7% REVENUE CAGR CY2024E EV/EBITDA 0.0% 13.8x 10.6% 9.5x Peer Average
Slide 15: Investment Highlights
Investment Highlights Profitable, growing & undervalued Truly global connectivity solutions provider ~2,200 customers in 130+ countries • Consistent track record of growth & margin expansion ▪ Q1’24 revenue up 6% NORTH AMERICA INDIA Revenue by Region ▪ Full-Year 2023 revenue up 18% year-over-year •
Slide 16: Thank You
THANK YOU DELIVERING CONNECTIVITY EVERYWHERE Nasdaq: CRNT 16