Slide 1: Fiscal Q3 2024 Earnings Presentation
Ciena Corporation Fiscal Q3 2024 Earnings Presentation Period ended July 27, 2024 September 4, 2024 © Ciena Corporation 2024. All rights reserved. Proprietary Information.
Slide 2: Forward-looking statements and non-GAAP measures
Forward-looking statements and non-GAAP measures You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission (SEC) filings, recent news, financial results, supplemental financial information, and other announcements. F
Slide 3: Table of Contents
Table of Contents 1. Overview & Ciena's portfolio 2. Industry context & addressable market expansion 3. Fiscal Q3 2024 financial performance 4. Fiscal Q4 2024 outlook 5. Appendix 3 © Ciena Corporation 2024. All rights reserved. Proprietary Information.
Slide 4: Overview & Ciena's portfolio
Overview & Ciena's portfolio © Ciena Corporation 2024. All rights reserved. Proprietary Information.
Slide 5: Ciena is an industry-leading global networking systems, services, and software company
Ciena is an industry-leading global networking systems, services, and software company 5 © Ciena Corporation 2024. All rights reserved. Proprietary Information.
Slide 6: Our vision for networking: How it works
Our vision for networking: How it works 6 © Ciena Corporation 2024. All rights reserved. Proprietary Information.
Slide 7: Industry context & addressable market expansion
Industry context & addressable market expansion © Ciena Corporation 2024. All rights reserved. Proprietary Information.
Slide 8: Increasing bandwidth consumption as a driver of network expansion
Increasing bandwidth consumption as a driver of network expansion 8 © Ciena Corporation 2024. All rights reserved. Proprietary Information.
Slide 9: Our strategy leverages our Optical technology to create expanded addressable market opportunities
Our strategy leverages our Optical technology to create expanded addressable market opportunities 9 © Ciena Corporation 2024. All rights reserved. Proprietary Information.
Slide 10: Our addressable market expansion strategy allows us to access higher growth markets
Our addressable market expansion strategy allows us to access higher growth markets 1 Sources: LightCounting and Ciena internal analysis. 10 © Ciena Corporation 2024. All rights reserved. Proprietary Information.
Slide 11: Our market leadership
Our market leadership #1 Globally #1 Globally #1 Globally • Purpose-built/compact modular DCI • Purpose-built/compact modular DCI • Data center interconnect • SLTE WDM • Optical for cloud and colo • Purpose-built/compact modular DCI • Access switching • SLTE WDM • Optical for internet content provid
Slide 12: Q3 FY 2024 results
Q3 FY 2024 results © Ciena Corporation 2024. All rights reserved. Proprietary Information.
Slide 13: Q3 FY 2024 key highlights
Q3 FY 2024 key highlights Prioritizing long term Achieving balanced growth Driving the pace of innovation shareholder value Non-telco represented 46% of total • Continued traction with cloud providers • Total shareholder return five-year revenue with strong ramp in 400ZR deployments CAGR of 8%1 Dire
Slide 14: Q3 FY 2024 comparative financial highlights
Q3 FY 2024 comparative financial highlights Q3 FY 2024 Q3 FY 2023 Revenue $942.3M $1,067.9M Adjusted Gross Margin* 43.7% 42.7% Adjusted Operating Expense* $336.0M $327.9M Adjusted Operating Margin* 8.0% 12.0% Adjusted EBITDA* $98.5M $151.3M Adjusted EPS* $0.35 $0.59 * Reconciliations of these non-GA
Slide 15: Q3 FY 2024 comparative operating metrics
Q3 FY 2024 comparative operating metrics Q3 FY 2024 Q3 FY 2023 Cash and investments $1.21B $1.28B Cash provided by (used in) $(159)M $9M operations DSO 100.0 96.0 Inventory Turns 1.8 1.7 Gross Leverage 3.08x 2.54x Net Debt $401M $344M 15 © Ciena Corporation 2024. All rights reserved. Proprietary Inf
Slide 16: Revenue by segment
Revenue by segment (Amounts in millions) Q3 FY 2024 Q3 FY 2023 Revenue %** Revenue %** Networking Platforms Optical Networking $606.8 64.4 $719.0 67.3 Routing and Switching 92.7 9.8 127.6 11.9 Total Networking Platforms 699.5 74.2 846.6 79.2 Platform Software and Services 83.2 8.9 78.9 7.4 Blue Plan
Slide 17: Revenue derived from non-telco customers
Revenue derived from non-telco customers 17 © Ciena Corporation 2024. All rights reserved. Proprietary Information.
Slide 18: Revenue by geographic region
Revenue by geographic region 14.5% 15.5% 10.8% 9.4% 14.5% 10.1% 14.4% 20.0% 14.3% 17.1% 70.1% 71.0% 69.2% 72.8% 76.3% 18 © Ciena Corporation 2024. All rights reserved. Proprietary Information.
Slide 19: Business outlook
Business outlook © Ciena Corporation 2024. All rights reserved. Proprietary Information.
Slide 20: Economic considerations and assumptions in our fiscal 2024 outlook
Economic considerations and assumptions in our fiscal 2024 outlook Business Assumptions Revenue Assumptions Profitability Assumptions • Macro environment does not significantly • We secure increased orders, particularly • Operating expense increases moderately worsen or result in any adverse effects
Slide 21: Business outlook
Business outlook1 Q4 FY 2024 Revenue $1,060M to $1,140M Adjusted Gross Margin low to mid 40s% Adjusted Operating Expense Approximately $350M 1 Projections or outlook with respect to future operating results are only as of September 4, 2024, the date presented on the related earnings call. Actual res
Slide 22: Q3 FY 2024 appendix
Q3 FY 2024 appendix © Ciena Corporation 2024. All rights reserved. Proprietary Information.
Slide 23: Gross Profit Reconciliation
Gross Profit Reconciliation (Amounts in thousands) Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 GAAP gross profit $403,945 $388,661 $466,962 $486,281 $448,941 Share-based compensation-products 1,660 1,760 1,318 1,194 1,118 Share-based compensation-services 3,122 3,344 3,020 2,827 2,687 Amo
Slide 24: Operating Expense Reconciliation
Operating Expense Reconciliation (Amounts in thousands) Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 GAAP operating expense $377,202 $392,626 $382,333 $394,979 $370,727 Share-based compensation-research and development 13,118 14,066 12,880 11,412 10,954 Share-based compensation-sales and m
Slide 25: Net Income (Loss) Reconciliation
Net Income (Loss) Reconciliation (Amounts in thousands) Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 GAAP net income (loss) $14,230 $(16,849) $49,547 $91,199 $29,733 Exclude GAAP provision (benefit) for income taxes 2,125 820 21,956 (20,681) 34,608 Income (loss) before income taxes 16,355
Slide 26: Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) (Amounts in thousands) Earnings Before Interest, Tax, Depreciation and Amortization Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 Q4 FY 2023 Q3 FY 2023 (EBITDA) Net income (loss) (GAAP) $14,230 $(16,849) $49,547 $91,199 $29,733 Add: Interest e
Slide 27: Thank You
Thank You © Ciena Corporation 2024. All rights reserved. Proprietary Information.