Ribbon Communications Inc. Reports First Quarter 2024 Financial Results
- Significant profitability improvement with over 700 basis points increase in Gross Margin
- Revenue for Q1 2024 was $180 million, compared to $186 million in Q1 2023
- GAAP Loss from Operations improved by $22 million year over year
- Non-GAAP Adjusted EBITDA improved by $14 million to $12 million
- GAAP and Non-GAAP Gross Margin improved over 700 basis points year over year
- Strong sales in the EMEA region, growing 24% year over year
- IP Optical Networks segment saw a 9% increase in sales year over year
- Cloud & Edge sales were down in Q1, but the company expects growth with new projects
- Company's President and CEO, Bruce McClelland, optimistic about future growth prospects
- None.
Insights
Ribbon Communications Inc.'s first quarter results for 2024 show several key financial metrics that are particularly telling about the company's current operational efficiency and potential growth trajectory. Firstly, the 700 basis points increase in Gross Margin is a significant improvement, indicating enhanced profitability. This kind of margin expansion is typically reflective of either reduced cost of goods sold or a shift towards higher-margin products and services. For investors, this could signal a successful implementation of cost-control measures or a strategic pivot that could sustain or improve profitability in the future.
Another noteworthy aspect is the improvement in Non-GAAP Adjusted EBITDA to $12 million, from a previous negative figure. EBITDA — or earnings before interest, taxes, depreciation and amortization — serves as a proxy for a company's operating performance. This turnaround suggests that Ribbon Communications is better managing its operating expenses and could be moving towards achieving operational leverage. The company has likely optimized its cost structure, which could lead to improved cash flows and, consequently, an enhanced valuation.
Despite a slight decrease in GAAP Revenue year over year, the company narrowed its GAAP Net Loss by $8 million and its Non-GAAP Net Loss by $2 million. This might indicate that Ribbon Communications is becoming more resilient, even in the face of revenue volatility. For investors, the ability of a company to control losses amidst revenue fluctuations is reassuring, particularly for long-term investment considerations.
From a market positioning perspective, Ribbon Communications' selection by Verizon for a multi-year Advanced Voice Network Platform is of considerable strategic importance. Verizon is a major player in the telecommunications space and securing such a contract is indicative of Ribbon's competitive edge in their industry. It also represents a stable, future revenue stream — a critical driver for investor confidence. The mention of strong sales growth in the EMEA region, particularly across Service Provider and Critical Infrastructure markets, suggests robust international demand for Ribbon's offerings. A 24% year-over-year regional sales growth is quite substantial and points to the company's effectiveness at penetrating key markets and expanding its global footprint.
Moreover, the consecutive growth in the IP Optical Networks segment for the seventh quarter, particularly at a 9% increase, reflects consistent demand for this technology, which is important for the development of 5G and other advanced communication infrastructures. For investors, consistent segment growth is an indicator of the company's stable market demand and potential for recurring revenue. Additionally, investors should note the emphasis on expected growth in the Cloud & Edge segment, driven by a recovery in Service Provider spending and new U.S. Federal projects. This outlook can be seen as a forward-looking statement providing a positive projection for future revenues.
In the tech sector, Ribbon Communications' focus on modernizing voice networks is an indication of the company adapting to the industry's shift towards more advanced platforms that require high-level IP optical networking solutions. Verizon's choice to work with Ribbon Communications for their network modernization program reflects the company's technical capabilities and the trust that large service providers put in their technology. The advancements in the Cloud & Edge segment also demonstrate Ribbon's alignment with current tech trends, where cloud services and edge computing are growing increasingly significant. The reduction in product costs and a strong regional mix contributing to gross margins above 40% for the segment illustrate effective supply chain and operational management that resonates well with investors looking for companies with strong operational backbone.
Furthermore, as Ribbon Communications expects a low point in U.S. Tier One Service Provider spending, their anticipation of a rebound could imply internal confidence in the market's dynamics and their business model's resilience. The tech industry, known for its rapid evolution, places a premium on adaptability and foresight. Ribbon's projection of growth in the Enterprise sector, including U.S. Federal projects, further underscores their diversified approach to growth, which can help buffer against market volatility in specific sectors.
Significant profitability improvement with >700 bps increase in Gross Margin
Selected by Verizon for multi-year Advanced Voice Network Platform
Revenue for the first quarter of 2024 was
"I am very pleased with the improvement in our profitability year over year, exceeding the high end of our guidance. Sales in the EMEA region were strong across Service Provider and Critical Infrastructure markets, growing
"Sales in our IP Optical Networks segment increased year over year for the seventh consecutive quarter, up
Financial Highlights1 | ||||
Three months ended | ||||
March 31, | ||||
In millions, except per share amounts | 2024 | 2023 | ||
GAAP Revenue | $ 180 | $ 186 | ||
GAAP Net income (loss) | $ (30) | $ (38) | ||
Non-GAAP Net income (loss) | $ (1) | $ (3) | ||
Non-GAAP Adjusted EBITDA | $ 12 | $ (2) | ||
GAAP diluted earnings (loss) per share | $ (0.18) | $ (0.23) | ||
Non-GAAP diluted earnings (loss) per share | $ (0.01) | $ (0.02) | ||
Weighted average shares outstanding basic | 172 | 169 | ||
Weighted average shares outstanding diluted | 175 | 175 | ||
1 Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules. |
"We now have six quarters in a row of year-over-year Adjusted EBITDA improvement, leading to a trailing twelve- month Adjusted EBITDA of
Business Outlook1
For the second quarter of 2024, the Company projects revenue of
The Company's outlook is based on current indications for its business, which are subject to change.
1 Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules. |
Upcoming Conference Schedule
- May 14-15, 2024: 19th Annual Needham Technology, Media, and Consumer Conference
- May 22-23, 2024: B. Riley Securities 24th Annual Institutional Investor Conference
- May 29, 2024: 21st Annual Craig-Hallum Institutional Investor Conference
- June 25, 2024: Northland Growth Conference 2024
About Ribbon
Ribbon Communications (Nasdaq: RBBN) delivers communications software, IP and optical networking solutions to service providers, enterprises and critical infrastructure sectors globally. We engage deeply with our customers, helping them modernize their networks for improved competitive positioning and business outcomes in today's smart, always-on and data-hungry world. Our innovative, end-to-end solutions portfolio delivers unparalleled scale, performance, and agility, including core to edge software-centric solutions, cloud-native offers, leading-edge security and analytics tools, along with IP and optical networking solutions for 5G and broadband internet. We maintain a keen focus on our commitments to Environmental, Social and Governance (ESG) matters, offering an annual Sustainability Report to our stakeholders. To learn more about Ribbon visit rbbn.com.
Important Information Regarding Forward-Looking Statements
The information in this release contains "forward-looking statements" within the meaning of the
Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those contemplated in these forward-looking statements due to various risks, uncertainties and other important factors, including, among others, the effects of geopolitical instabilities and wars, including in
These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the Company's business and results from operations. Additional information regarding these and other factors can be found in the Company's reports filed with the Securities and Exchange Commission, including, without limitation, its Form 10-K for the year ended December 31, 2023. In providing forward-looking statements, the Company expressly disclaims any obligation to update these statements publicly or otherwise, whether as a result of new information, future events or otherwise, except as required by law.
Discussion of Non-GAAP Financial Measures
The Company's management uses several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of its business, making operating decisions, planning and forecasting future periods, and determining payments under compensation programs. The Company considers the use of non-GAAP financial measures helpful in assessing the core performance of its continuing operations and when planning and forecasting future periods. The Company's annual financial plan is prepared on a non-GAAP basis and is approved by its board of directors. In addition, budgeting and forecasting for revenue and expenses are conducted on a non-GAAP basis, and actual results on a non-GAAP basis are assessed against the annual financial plan. The Company defines continuing operations as the ongoing results of its business adjusted for certain expenses and credits, as described below. The Company believes that providing non-GAAP information to investors will allow investors to view the financial results in the way its management views them and helps investors to better understand the Company's core financial and operating performance and evaluate the efficacy of the methodology and information used by its management to evaluate and measure such performance.
While the Company's management uses non-GAAP financial measures as tools to enhance its understanding of certain aspects of the Company's financial performance, its management does not consider these measures to be a substitute for, or superior to, GAAP measures. In addition, the Company's presentations of these measures may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures. In particular, many of the adjustments to the Company's financial measures reflect the exclusion of items that are recurring and will be reflected in its financial results for the foreseeable future.
Stock-Based Compensation
The expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. The Company believes that presenting non-GAAP operating results that exclude stock-based compensation provides investors with visibility and insight into its management's method of analysis and its core operating performance.
Amortization of Acquired Technology (including software licenses); Amortization of Acquired Intangible Assets
Amortization amounts are inconsistent in frequency and amount and are significantly impacted by the timing and size of acquisitions. Amortization of acquired technology is reported separately within Cost of revenue and Amortization of acquired intangible assets is reported separately within Operating expenses. These items are reported collectively as Amortization of acquired intangible assets in the accompanying reconciliations of non-GAAP and GAAP financial measures. The Company believes that excluding non-cash amortization of these intangible assets facilitates the comparison of its financial results to its historical operating results and to other companies in its industry as if the acquired intangible assets had been developed internally rather than acquired.
Litigation Costs
In connection with a certain ongoing contract litigation where Ribbon is defendant (as described in Note 26 to the Company's Consolidated Financial Statements included in its Annual Report on Form 10-K for the year ended December 31, 2023), the Company has incurred litigation costs beginning in the first quarter of 2023. These costs are included as a component of general and administrative expense. The Company believes that such costs are not part of its core business or ongoing operations, are unplanned and generally not within its control. Accordingly, the Company believes that excluding the litigation costs related to this specific legal matter facilitates the comparison of the Company's financial results to its historical operating results and to other companies in its industry.
Acquisition-, Disposal- and Integration-Related
The Company considers certain acquisition-, disposal- and integration-related costs to be unrelated to the organic continuing operations of the Company and its acquired businesses. Such costs are generally not relevant to assessing or estimating the long-term performance of the acquired assets. The Company excludes such acquisition-, disposal- and integration-related costs to allow more accurate comparisons of its financial results to its historical operations and the financial results of less acquisitive peer companies and allows management and investors to consider the ongoing operations of the business both with and without such expenses.
Restructuring and Related
The Company has recorded restructuring and related expense to streamline operations and reduce operating costs by closing and consolidating certain facilities and reducing its worldwide workforce. The Company believes that excluding restructuring and related expense facilitates the comparison of its financial results to its historical operating results and to other companies in its industry, as there are no future revenue streams or other benefits associated with these costs.
Preferred Stock and Warrant Liability Issuance Costs
The Company incurred
Preferred Stock and Warrant Liability Mark-to-Market Adjustment
The Company recorded adjustments to the fair value of its Series A Preferred Stock and warrants to purchase shares of the Company's common stock in Other (expense) income, net. Both instruments issued in March 2023 in connection with the Company's private placement and are classified as liabilities and marked to market each reporting period. The Company excluded these gains and losses from the change in the fair value of these liabilities because it believes that such gains or losses were not part of its core business or ongoing operations.
Tax Effect of Non-GAAP Adjustments
The Non-GAAP income tax provision is presented based on an estimated tax rate applied against forecasted annual non-GAAP income. The Non-GAAP income tax provision assumes no available net operating losses or valuation allowances for the
Adjusted EBITDA
The Company uses Adjusted EBITDA as a supplemental measure to review and assess its performance. The Company calculates Adjusted EBITDA by excluding from income (loss) from operations: depreciation; stock-based compensation; amortization of acquired intangible assets; certain litigation costs; acquisition-, disposal- and integration-related expense; and restructuring and related expense. In general, the Company excludes the expenses that it considers to be non-cash and/or not a part of its ongoing operations. The Company may exclude other items in the future that have those characteristics. Adjusted EBITDA is a non-GAAP financial measure that is used by the investing community for comparative and valuation purposes. The Company discloses this metric to support and facilitate dialogue with research analysts and investors. Other companies may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure.
Conference Call Details:
Conference call to discuss the Company's financial results for the first quarter ended March 31, 2024.
Date: Wednesday, April 24, 2024
Time: 8:30 a.m. (ET)
Dial-In Information:
US/
International: 201-389-0925
Instant Telephone Access: Call me™
A telephone playback of the call will be available following the conference call until May 8, 2024 and can be accessed by calling 877-660-6853 or 201-612-7415 for international callers. The reservation number for the replay is 13745635.
Live (Listen-Only) Webcast:
Available via the Investor Relations website, where a replay will also be available shortly following the conference call.
For more details on financial results, please visit investors.ribboncommunications.com.
Investor Relations
+1 (978) 614-8050
ir@rbbn.com
Media Contact
Catherine Berthier
+1 (646) 741-1974
cberthier@rbbn.com
RIBBON COMMUNICATIONS INC. | ||||||||
Three months ended | ||||||||
March 31, | December 31, | March 31, | ||||||
2024 | 2023 | 2023 | ||||||
Revenue: | ||||||||
Product | $ 87,610 | $ 125,984 | $ 93,318 | |||||
Service | 92,054 | 100,417 | 92,841 | |||||
Total revenue | 179,664 | 226,401 | 186,159 | |||||
Cost of revenue: | ||||||||
Product | 45,794 | 61,183 | 62,063 | |||||
Service | 35,364 | 37,205 | 35,305 | |||||
Amortization of acquired technology | 6,551 | 6,305 | 7,389 | |||||
Total cost of revenue | 87,709 | 104,693 | 104,757 | |||||
Gross profit | 91,955 | 121,708 | 81,402 | |||||
Gross margin | 51.2 % | 53.8 % | 43.7 % | |||||
Operating expenses: | ||||||||
Research and development | 45,763 | 45,351 | 51,304 | |||||
Sales and marketing | 34,716 | 35,361 | 35,399 | |||||
General and administrative | 15,191 | 13,686 | 14,045 | |||||
Amortization of acquired intangible assets | 6,706 | 6,861 | 7,264 | |||||
Acquisition-, disposal- and integration-related | - | 1,494 | 1,642 | |||||
Restructuring and related | 3,065 | 2,285 | 6,937 | |||||
Total operating expenses | 105,441 | 105,038 | 116,591 | |||||
Income from operations | (13,486) | 16,670 | (35,189) | |||||
Interest expense, net | (5,987) | (6,989) | (6,422) | |||||
Other (expense) income, net | (7,513) | (3,232) | 4,772 | |||||
Income (loss) before income taxes | (26,986) | 6,449 | (36,839) | |||||
Income tax benefit (provision) | (3,375) | 630 | (1,466) | |||||
Net income (loss) | $ (30,361) | $ 7,079 | $ (38,305) | |||||
Income (loss) per share: | ||||||||
Basic | $ (0.18) | $ 0.04 | $ (0.23) | |||||
Diluted | $ (0.18) | $ 0.04 | $ (0.23) | |||||
Weighted average shares used to compute income (loss) per share: | ||||||||
Basic | 172,428 | 171,755 | 168,541 | |||||
Diluted | 172,428 | 172,990 | 168,541 | |||||
RIBBON COMMUNICATIONS INC. | ||||||
March 31, | December 31, | |||||
2024 | 2023 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 30,931 | $ 26,630 | ||||
Accounts receivable, net | 212,498 | 268,421 | ||||
Inventory | 80,758 | 77,521 | ||||
Other current assets | 44,943 | 46,146 | ||||
Total current assets | 369,130 | 418,718 | ||||
Property and equipment, net | 40,758 | 41,820 | ||||
Intangible assets, net | 224,880 | 238,087 | ||||
Goodwill | 300,892 | 300,892 | ||||
Deferred income taxes | 72,438 | 69,761 | ||||
Operating lease right-of-use assets | 37,110 | 39,783 | ||||
Other assets | 33,252 | 35,092 | ||||
$ 1,078,460 | $ 1,144,153 | |||||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Current portion of term debt * | $ 228,168 | $ 35,102 | ||||
Accounts payable | 66,847 | 85,164 | ||||
Accrued expenses and other | 84,491 | 91,687 | ||||
Operating lease liabilities | 14,213 | 15,739 | ||||
Deferred revenue | 110,596 | 113,381 | ||||
Total current liabilities | 504,315 | 341,073 | ||||
Long-term debt, net of current * | - | 197,482 | ||||
Warrant liability | 5,927 | 5,295 | ||||
Preferred stock liability | 56,204 | 53,337 | ||||
Operating lease liabilities, net of current | 36,768 | 38,711 | ||||
Deferred revenue, net of current | 14,019 | 19,218 | ||||
Deferred income taxes | 5,616 | 5,616 | ||||
Other long-term liabilities | 30,953 | 30,658 | ||||
Total liabilities | 653,802 | 691,390 | ||||
Commitments and contingencies | ||||||
Stockholders' equity: | ||||||
Common stock | 17 | 17 | ||||
Additional paid-in capital | 1,962,602 | 1,958,909 | ||||
Accumulated deficit | (1,550,311) | (1,519,950) | ||||
Accumulated other comprehensive income | 12,350 | 13,787 | ||||
Total stockholders' equity | 424,658 | 452,763 | ||||
$ 1,078,460 | $ 1,144,153 | |||||
* The Company's debt, substantially all of which represents Term Debt outstanding under our 2020 Credit Facility, is scheduled to mature on March 3, 2025, and is therefore presented entirely in the above as a current liability as of March 31, 2024. The Company is currently seeking to refinance the Term Debt before filing of the Form 10-Q for the quarter ended March 31, 2024. Should a refinancing transaction occur prior to the filing of our Form 10-Q the Term Debt would be presented in the Company's Form 10-Q as Long-term debt, net of current in accordance with US GAAP. |
RIBBON COMMUNICATIONS INC. | |||||||
Three months ended | |||||||
March 31, | March 31, | ||||||
2024 | 2023 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ (30,361) | $ (38,305) | |||||
Adjustments to reconcile net loss to cash flows provided by operating activities: | |||||||
Depreciation and amortization of property and equipment | 3,394 | 3,510 | |||||
Amortization of intangible assets | 13,257 | 14,653 | |||||
Amortization of debt issuance costs | 716 | 1,065 | |||||
Amortization of accumulated other comprehensive gain related to interest rate swap | (1,756) | - | |||||
Stock-based compensation | 4,522 | 5,848 | |||||
Deferred income taxes | (2,620) | (6,048) | |||||
Gain on sale of swap | - | (7,301) | |||||
Change in fair value of warrant liability | 632 | - | |||||
Change in fair value of preferred stock liability | 1,512 | - | |||||
Dividends accrued on preferred stock liability | 1,355 | - | |||||
Foreign currency exchange (gains) losses | 1,144 | (2,185) | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 55,384 | 19,742 | |||||
Inventory | (4,379) | (2,917) | |||||
Other operating assets | 7,923 | 15,031 | |||||
Accounts payable | (17,837) | (10,405) | |||||
Accrued expenses and other long-term liabilities | (11,800) | 11,521 | |||||
Deferred revenue | (7,986) | 6,924 | |||||
Net cash provided by operating activities | 13,100 | 11,133 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (2,513) | (2,413) | |||||
Purchases of software licenses | (150) | - | |||||
Net cash used in investing activities | (2,663) | (2,413) | |||||
Cash flows from financing activities: | |||||||
Borrowings under revolving line of credit | 15,000 | - | |||||
Principal payments on revolving line of credit | (15,000) | - | |||||
Principal payments of term debt | (5,014) | (80,015) | |||||
Payment of debt issuance costs | - | (1,562) | |||||
Proceeds from issuance of preferred stock and warrant liabilities | - | 53,350 | |||||
Proceeds from the exercise of stock options | 17 | 1 | |||||
Payment of tax withholding obligations related to net share settlements of restricted stock awards | (846) | (1,893) | |||||
Net cash used in financing activities | (5,843) | (30,119) | |||||
Effect of exchange rate changes on cash and cash equivalents | (293) | 171 | |||||
Net increase (decrease) in cash and cash equivalents | 4,301 | (21,228) | |||||
Cash and cash equivalents, beginning of year | 26,630 | 67,262 | |||||
Cash and cash equivalents, end of period | $ 30,931 | $ 46,034 | |||||
RIBBON COMMUNICATIONS INC. | ||||||||
The following tables provide the details of stock-based compensation included as components | ||||||||
Three months ended | ||||||||
March 31, | December 31, | March 31, | ||||||
2024 | 2023 | 2023 | ||||||
Stock-based compensation | ||||||||
Cost of revenue - product | $ 106 | $ 125 | $ 149 | |||||
Cost of revenue - service | 472 | 550 | 535 | |||||
Cost of revenue | 578 | 675 | 684 | |||||
Research and development | 1,068 | 1,112 | 1,262 | |||||
Sales and marketing | 1,157 | 1,438 | 2,129 | |||||
General and administrative | 1,719 | 1,667 | 1,773 | |||||
Operating expense | 3,944 | 4,217 | 5,164 | |||||
Total stock-based compensation | $ 4,522 | $ 4,892 | $ 5,848 | |||||
RIBBON COMMUNICATIONS INC. | |||||
Three months ended | |||||
March 31, | December 31, | March 31, | |||
2024 | 2023 | 2023 | |||
GAAP Gross margin | 51.2 % | 53.8 % | 43.7 % | ||
Stock-based compensation | 0.3 % | 0.3 % | 0.4 % | ||
Amortization of acquired technology | 3.6 % | 2.7 % | 4.0 % | ||
Non-GAAP Gross margin | 55.1 % | 56.8 % | 48.1 % | ||
GAAP Net income (loss) | $ (30,361) | $ 7,079 | $ (38,305) | ||
Stock-based compensation | 4,522 | 4,892 | 5,848 | ||
Amortization of acquired intangible assets | 13,257 | 13,166 | 14,653 | ||
Litigation costs | 951 | 538 | 177 | ||
Acquisition-, disposal- and integration-related | - | 1,494 | 1,642 | ||
Restructuring and related | 3,065 | 2,285 | 6,937 | ||
Preferred stock and warrant liability issuance costs | - | - | 3,545 | ||
Preferred stock and warrant liability mark-to-market adjustment | 3,499 | 3,724 | - | ||
Tax effect of non-GAAP adjustments | 3,971 | (11,606) | 2,676 | ||
Non-GAAP Net income (loss) | $ (1,096) | $ 21,572 | $ (2,827) | ||
GAAP Diluted earnings (loss) per share | $ (0.18) | $ 0.04 | $ (0.23) | ||
Stock-based compensation | 0.03 | 0.03 | 0.04 | ||
Amortization of acquired intangible assets | 0.07 | 0.08 | 0.08 | ||
Litigation costs | 0.01 | * | * | ||
Acquisition-, disposal- and integration-related | - | 0.01 | 0.01 | ||
Restructuring and related | 0.02 | 0.01 | 0.04 | ||
Preferred stock and warrant liability issuance costs | - | - | 0.02 | ||
Preferred stock and warrant liability mark-to-market adjustment | 0.02 | 0.02 | - | ||
Tax effect of non-GAAP adjustments | 0.02 | (0.07) | 0.02 | ||
Non-GAAP Diluted earnings (loss) per share | $ (0.01) | $ 0.12 | $ (0.02) | ||
Weighted average shares used to compute diluted earnings (loss) per share | |||||
Shares used to compute GAAP diluted earnings (loss) per share | 172,428 | 171,755 | 168,541 | ||
Shares used to compute Non-GAAP diluted earnings (loss) per share | 172,428 | 172,990 | 168,541 | ||
GAAP Income (loss) from operations | $ (13,486) | $ 16,670 | $ (35,189) | ||
Depreciation | 3,394 | 3,502 | 3,510 | ||
Stock-based compensation | 4,522 | 4,892 | 5,848 | ||
Amortization of acquired intangible assets | 13,257 | 13,166 | 14,653 | ||
Litigation costs | 951 | 538 | 177 | ||
Acquisition-, disposal- and integration-related | - | 1,494 | 1,642 | ||
Restructuring and related | 3,065 | 2,285 | 6,937 | ||
Non-GAAP Adjusted EBITDA | $ 11,703 | $ 42,547 | $ (2,422) | ||
* Less than | |||||
RIBBON COMMUNICATIONS INC. | |||||
Trailing Twelve Months | |||||
March 31, | December 31, | March 31, | |||
2024 | 2023 | 2023 | |||
GAAP Income (loss) from operations | $ (2,582) | $ (24,285) | $ (44,459) | ||
Depreciation | 13,989 | 14,105 | 14,920 | ||
Stock-based compensation | 20,480 | 21,806 | 20,300 | ||
Amortization of acquired intangible assets | 55,495 | 56,891 | 60,299 | ||
Litigation costs | 2,081 | 1,307 | 177 | ||
Acquisition-, disposal- and integration-related | 2,834 | 4,476 | 6,079 | ||
Restructuring and related | 12,337 | 16,209 | 12,956 | ||
Non-GAAP Adjusted EBITDA | $ 104,634 | $ 90,509 | $ 70,272 | ||
RIBBON COMMUNICATIONS INC. | ||||||||||
Three months ending | Year ending | |||||||||
June 30, 2024 | December 31, 2024 | |||||||||
Midpoint (1) | Range | Midpoint (1) | Range | |||||||
Revenue ($ millions) | $ 205 | +/- | $ 855 | +/- | ||||||
Gross margin: | ||||||||||
GAAP outlook | 50.6 % | 50.3 % | ||||||||
Stock-based compensation | 0.3 % | 0.3 % | ||||||||
Amortization of acquired technology | 3.1 % | 2.9 % | ||||||||
Non-GAAP outlook | 54.0 % | +/- | 53.5 % | +/- | ||||||
Adjusted EBITDA ($ millions): | ||||||||||
GAAP income (loss) from operations | $ (2.5) | $ 13.4 | ||||||||
Depreciation | 3.7 | 14.8 | ||||||||
Stock-based compensation | 4.5 | 18.6 | ||||||||
Amortization of acquired intangible assets | 13.0 | 50.8 | ||||||||
Litigation costs | 1.1 | 2.7 | ||||||||
Restructuring and related | 2.7 | 14.7 | ||||||||
Non-GAAP outlook | $ 22.5 | +/- | $ 115.0 | +/- | ||||||
(1) Q2 2024 and FY 2024 outlook represents the midpoint of the expected ranges | ||||||||||
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SOURCE Ribbon Communications Inc.
FAQ
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