Ribbon Communications Inc. Reports Fourth Quarter and Full Year 2024 Financial Results
Ribbon Communications (RBBN) reported strong Q4 2024 financial results with record quarterly sales. Q4 revenue reached $251 million, up 11% from $226 million in Q4 2023. GAAP Operating Income was $33 million, compared to $17 million in Q4 2023, while Non-GAAP Adjusted EBITDA increased 30% YoY to $55 million.
Full-year 2024 revenue was $834 million versus $826 million in 2023. GAAP Operating Income improved to $17 million from a loss of $24 million in 2023. Non-GAAP Adjusted EBITDA grew 31% to $119 million. Both GAAP and Non-GAAP Gross Margins increased by 300 basis points to 53% and 56% respectively.
For 2025, Ribbon projects revenue of $870-890 million and Adjusted EBITDA of $130-140 million. Q1 2025 guidance indicates revenue of $185-195 million with Adjusted EBITDA of $12-18 million.
Ribbon Communications (RBBN) ha riportato risultati finanziari solidi per il quarto trimestre del 2024, con vendite trimestrali record. I ricavi del quarto trimestre hanno raggiunto $251 milioni, con un aumento dell'11% rispetto ai $226 milioni del quarto trimestre del 2023. Il reddito operativo GAAP è stato di $33 milioni, rispetto ai $17 milioni del quarto trimestre del 2023, mentre l'EBITDA rettificato Non-GAAP è aumentato del 30% su base annua, arrivando a $55 milioni.
I ricavi totali per l'anno 2024 sono stati di $834 milioni rispetto ai $826 milioni del 2023. Il reddito operativo GAAP è migliorato a $17 milioni da una perdita di $24 milioni nel 2023. L'EBITDA rettificato Non-GAAP è cresciuto del 31% fino a $119 milioni. Sia i margini lordi GAAP che Non-GAAP sono aumentati di 300 punti base, raggiungendo rispettivamente il 53% e il 56%.
Per il 2025, Ribbon prevede ricavi tra $870 e $890 milioni e un EBITDA rettificato tra $130 e $140 milioni. Le stime per il primo trimestre del 2025 indicano ricavi tra $185 e $195 milioni con un EBITDA rettificato tra $12 e $18 milioni.
Ribbon Communications (RBBN) reportó resultados financieros sólidos para el cuarto trimestre de 2024, con ventas trimestrales récord. Los ingresos del cuarto trimestre alcanzaron $251 millones, un aumento del 11% en comparación con los $226 millones del cuarto trimestre de 2023. El ingreso operativo GAAP fue de $33 millones, en comparación con los $17 millones del cuarto trimestre de 2023, mientras que el EBITDA ajustado No-GAAP aumentó un 30% interanual a $55 millones.
Los ingresos totales del año 2024 fueron de $834 millones frente a los $826 millones de 2023. El ingreso operativo GAAP mejoró a $17 millones desde una pérdida de $24 millones en 2023. El EBITDA ajustado No-GAAP creció un 31% hasta $119 millones. Tanto los márgenes brutos GAAP como No-GAAP aumentaron en 300 puntos básicos, alcanzando el 53% y el 56%, respectivamente.
Para 2025, Ribbon proyecta ingresos de entre $870 y $890 millones y un EBITDA ajustado de entre $130 y $140 millones. La guía para el primer trimestre de 2025 indica ingresos de entre $185 y $195 millones con un EBITDA ajustado de entre $12 y $18 millones.
리본 커뮤니케이션즈 (RBBN)는 2024년 4분기 강력한 재무 실적을 보고하며 분기 매출이 최고치를 기록했습니다. 4분기 수익은 $251백만에 달하여 2023년 4분기 $226백만에서 11% 증가했습니다. GAAP 운영 소득은 $33백만으로, 2023년 4분기 $17백만과 비교되며, 비-GAAP 조정 EBITDA는 전년 대비 30% 증가하여 $55백만에 도달했습니다.
2024년 전체 연간 수익은 $834백만으로 2023년의 $826백만과 비교됩니다. GAAP 운영 소득은 2023년의 $24백만 손실에서 $17백만으로 개선되었습니다. 비-GAAP 조정 EBITDA는 31% 성장하여 $119백만에 달했습니다. GAAP 및 비-GAAP 총 마진은 각각 53% 및 56%로 300 베이시스 포인트 증가했습니다.
2025년에는 리본이 $870-$890백만의 수익과 $130-$140백만의 조정 EBITDA를 예상하고 있습니다. 2025년 1분기 가이드는 $185-$195백만의 수익과 $12-$18백만의 조정 EBITDA를 나타냅니다.
Ribbon Communications (RBBN) a annoncé de solides résultats financiers pour le quatrième trimestre 2024, avec des ventes trimestrielles record. Les revenus du quatrième trimestre ont atteint $251 millions, en hausse de 11 % par rapport aux $226 millions du quatrième trimestre 2023. Le revenu opérationnel GAAP s'est élevé à $33 millions, contre $17 millions au quatrième trimestre 2023, tandis que l'EBITDA ajusté Non-GAAP a augmenté de 30 % d'une année sur l'autre pour atteindre $55 millions.
Les revenus annuels totaux pour 2024 se sont chiffrés à $834 millions, contre $826 millions en 2023. Le revenu opérationnel GAAP s'est amélioré à $17 millions, contre une perte de $24 millions en 2023. L'EBITDA ajusté Non-GAAP a progressé de 31 % pour atteindre $119 millions. Les marges brutes GAAP et Non-GAAP ont toutes deux augmenté de 300 points de base, atteignant respectivement 53 % et 56 %.
Pour 2025, Ribbon prévoit des revenus de $870 à $890 millions et un EBITDA ajusté de $130 à $140 millions. Les prévisions pour le premier trimestre 2025 indiquent des revenus de $185 à $195 millions avec un EBITDA ajusté de $12 à $18 millions.
Ribbon Communications (RBBN) hat starke Finanzresultate für das vierte Quartal 2024 gemeldet, mit rekordverdächtigen Quartalsverkäufen. Der Umsatz im vierten Quartal erreichte $251 Millionen, ein Anstieg von 11% gegenüber $226 Millionen im vierten Quartal 2023. Der GAAP-Betriebsgewinn betrug $33 Millionen, verglichen mit $17 Millionen im vierten Quartal 2023, während das non-GAAP bereinigte EBITDA um 30% im Jahresvergleich auf $55 Millionen anstieg.
Der Gesamtumsatz für das Jahr 2024 betrug $834 Millionen im Vergleich zu $826 Millionen im Jahr 2023. Der GAAP-Betriebsgewinn verbesserte sich auf $17 Millionen von einem Verlust von $24 Millionen im Jahr 2023. Das non-GAAP bereinigte EBITDA wuchs um 31% auf $119 Millionen. Sowohl die GAAP- als auch die non-GAAP-Bruttomargen stiegen um 300 Basispunkte auf 53% bzw. 56%.
Für 2025 prognostiziert Ribbon einen Umsatz von $870-890 Millionen und ein bereinigtes EBITDA von $130-140 Millionen. Die Prognose für das erste Quartal 2025 deutet auf einen Umsatz von $185-195 Millionen mit einem bereinigten EBITDA von $12-18 Millionen hin.
- Record quarterly revenue of $251M, up 11% YoY
- Q4 Non-GAAP Adjusted EBITDA increased 30% YoY to $55M
- Full-year GAAP Operating Income turned positive to $17M from -$24M
- Gross margins improved 300 basis points in both segments
- Strong Q4 book-to-bill ratio of 1.1x
- Year-end cash position of $90M
- Positive 2025 guidance with revenue growth to $870-890M
- Full-year GAAP Net loss of $54M in 2024
- Suspension of shipments to Eastern Europe impacting operations
- Seasonal business pattern indicating weaker Q1 performance
Insights
The Q4 2024 results represent a pivotal moment in Ribbon Communications' transformation strategy, marked by three critical developments:
- Margin expansion of 300 basis points to
56% (Non-GAAP) demonstrates successful execution of the company's value-based pricing strategy and operational efficiency initiatives - The book-to-bill ratio of 1.1x, combined with
$90 million in cash reserves, indicates strong order momentum and improved working capital management - Revenue diversification across service providers, enterprise customers, and federal agencies has reduced customer concentration risk and enhanced business stability
The company's successful refinancing of its credit facility, coupled with improved cash flow generation, has strengthened its financial foundation. The suspension of Eastern European shipments has been effectively offset by growth in other regions, particularly in U.S. Tier One Service Providers and Rural Broadband initiatives.
Looking ahead to 2025, the projected
The Verizon voice network modernization program serves as a strong reference case for similar opportunities with other tier-one carriers, potentially creating a multi-year growth runway. The company's strategic positioning in both IP optical networking and real-time communications technology provides exposure to two secular growth trends: network modernization and fiber network expansion.
Record Quarterly Sales and Operating Income
Revenue Grows
Revenue for the fourth quarter of 2024 was
For the full year 2024, Revenue was
"Our fourth quarter results were very strong across all key financial metrics, achieving record levels of revenue, near the top end of our guidance, and profitability, exceeding our guidance. We believe this is a clear validation of our strategy and a culmination of the effort over the last several years to diversify and drive profitable growth in both Service Provider and Enterprise markets," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications.
"Revenue growth was underpinned by higher sales to
Financial Highlights 1 | ||||||||
Three months ended | Year ended | |||||||
December 31, | December 31, | |||||||
In millions, except per share amounts | 2024 | 2023 | 2024 | 2023 | ||||
GAAP Revenue | $ 251 | $ 226 | $ 834 | $ 826 | ||||
GAAP Net income (loss) | $ 6 | $ 7 | $ (54) | $ (66) | ||||
Non-GAAP Net income (loss) | $ 28 | $ 22 | $ 44 | $ 36 | ||||
Non-GAAP Adjusted EBITDA | $ 55 | $ 43 | $ 119 | $ 91 | ||||
GAAP diluted earnings (loss) per share | $ 0.04 | $ 0.04 | $ (0.31) | $ (0.39) | ||||
Non-GAAP diluted earnings (loss) per share | $ 0.16 | $ 0.12 | $ 0.25 | $ 0.21 | ||||
Weighted average shares outstanding basic | 175 | 172 | 174 | 170 | ||||
Weighted average shares outstanding diluted | 179 | 173 | 177 | 173 | ||||
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. |
"The fourth quarter was a very strong finish for Ribbon and capped off a transformative year for the business. Improved earnings generation enabled us to successfully refinance our credit facility earlier in the year, and momentum accelerated with the launch of the voice network modernization program with Verizon. Increased business across both Enterprise and Service Providers resulted in a record level of sales in the fourth quarter along with a book-to-bill of 1.1x times. Cash from operations benefitted from higher collections, resulting in a year-end cash position of
Business Outlook2
For 2025, the Company expects profitable growth in both operating segments, with continued momentum from network modernization across Service Providers, Enterprise, and Federal and Defense customers. We expect a normal seasonal pattern with the business accelerating as the year progresses.
For the full year 2025, the Company projects revenue of
For the first quarter of 2025, the Company projects revenue of
The Company's outlook is based on current indications for its business, which are subject to change.
2 GAAP earnings guidance is not provided. 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
- March 3-6, 2025: Mobile World Congress
- March 17-20, 2025: Enterprise Connect
- March 30-April 3, 2025: Optical Fiber Communication Conference and Exhibition
- May 21-22, 2025: B. Riley Securities 25th Annual Institutional Investor Conference
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
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 unknown and/or difficult to predict and that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, unpredictable fluctuations in quarterly revenue and operating results; the impact of restructuring and cost-containment activities; increases in tariffs, trade restrictions or taxes on the Company's products; supply chain disruptions resulting from component availability and/or geopolitical instabilities and disputes (including those related to the wars 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. Any forward-looking statement made by the Company in this release speaks only as of the date on which this release was first issued. The Company undertakes no obligation to update any forward-looking statement publicly or otherwise, whether as a result of new information, future developments 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 allows them to view the Company's 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, 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 certain ongoing litigation where Ribbon is the 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 that began in 2023. Also, on October 14, 2024, a settlement in principle was reached on one of these legal matters and the Company accrued the
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 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 of these instruments were issued in March 2023 in connection with the Company's private placement and have been classified as liabilities and marked to market each reporting period until the Series A Preferred Stock was fully redeemed on June 25, 2024. The Warrant liability remains outstanding and will continue to be 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 Indemnification Write-Off
In connection with the Company's acquisition of ECI Telecom Group Ltd. in 2020, a portion of the shares of our common stock that were issued as consideration were held in escrow for potential future tax liabilities. This
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 fourth quarter and year ended December 31, 2024.
Date: Wednesday, February 12, 2025
Time: 4:30 p.m. (ET)
Dial-In Information:
US/
International: 201-389-0925
Instant Telephone Access: Call me™
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. | ||||||||
Consolidated Statements of Operations | ||||||||
(in thousands, except percentages and per share amounts) | ||||||||
(unaudited) | ||||||||
Three months ended | ||||||||
December 31, | September 30, | December 31, | ||||||
2024 | 2024 | 2023 | ||||||
Revenue: | ||||||||
Product | $ 148,335 | $ 112,151 | $ 125,984 | |||||
Service | 103,024 | 98,087 | 100,417 | |||||
Total revenue | 251,359 | 210,238 | 226,401 | |||||
Cost of revenue: | ||||||||
Product | 68,483 | 59,405 | 61,183 | |||||
Service | 37,316 | 34,893 | 37,205 | |||||
Amortization of acquired technology | 5,487 | 6,323 | 6,305 | |||||
Total cost of revenue | 111,286 | 100,621 | 104,693 | |||||
Gross profit | 140,073 | 109,617 | 121,708 | |||||
Gross margin | 55.7 % | 52.1 % | 53.8 % | |||||
Operating expenses: | ||||||||
Research and development | 45,044 | 45,645 | 45,351 | |||||
Sales and marketing | 37,070 | 33,060 | 35,361 | |||||
General and administrative | 17,060 | 21,588 | 13,686 | |||||
Amortization of acquired intangible assets | 6,298 | 6,457 | 6,861 | |||||
Acquisition-, disposal- and integration-related | - | - | 1,494 | |||||
Restructuring and related | 1,381 | 3,794 | 2,285 | |||||
Total operating expenses | 106,853 | 110,544 | 105,038 | |||||
Income (loss) from operations | 33,220 | (927) | 16,670 | |||||
Interest expense, net | (12,003) | (11,952) | (6,989) | |||||
Other (expense) income, net | (13,159) | 1,056 | (3,232) | |||||
Income (loss) before income taxes | 8,058 | (11,823) | 6,449 | |||||
Income tax benefit (provision) | (1,694) | (1,599) | 630 | |||||
Net income (loss) | $ 6,364 | $ (13,422) | $ 7,079 | |||||
Earnings (loss) per share: | ||||||||
Basic | $ 0.04 | $ (0.08) | $ 0.04 | |||||
Diluted | $ 0.04 | $ (0.08) | $ 0.04 | |||||
Weighted average shares used to compute earnings (loss) per share: | ||||||||
Basic | 175,321 | 174,613 | 171,755 | |||||
Diluted | 178,703 | 174,613 | 172,990 | |||||
RIBBON COMMUNICATIONS INC. | ||||||
Consolidated Statements of Operations | ||||||
(in thousands, except percentages and per share amounts) | ||||||
(unaudited) | ||||||
Year ended | ||||||
December 31, | December 31, | |||||
2024 | 2023 | |||||
Revenue: | ||||||
Product | $ 447,229 | $ 445,150 | ||||
Service | 386,652 | 381,189 | ||||
Total revenue | 833,881 | 826,339 | ||||
Cost of revenue: | ||||||
Product | 228,527 | 250,609 | ||||
Service | 140,949 | 139,357 | ||||
Amortization of acquired technology | 24,893 | 28,290 | ||||
Total cost of revenue | 394,369 | 418,256 | ||||
Gross profit | 439,512 | 408,083 | ||||
Gross margin | 52.7 % | 49.4 % | ||||
Operating expenses: | ||||||
Research and development | 179,941 | 190,660 | ||||
Sales and marketing | 137,830 | 137,460 | ||||
General and administrative | 68,740 | 54,962 | ||||
Amortization of acquired intangible assets | 25,969 | 28,601 | ||||
Acquisition-, disposal- and integration-related | - | 4,476 | ||||
Restructuring and related | 10,160 | 16,209 | ||||
Total operating expenses | 422,640 | 432,368 | ||||
Income (loss) from operations | 16,872 | (24,285) | ||||
Interest expense, net | (33,821) | (27,320) | ||||
Other (expense) income, net | (29,119) | (3,768) | ||||
Income (loss) before income taxes | (46,068) | (55,373) | ||||
Income tax benefit (provision) | (8,167) | (10,833) | ||||
Net income (loss) | $ (54,235) | $ (66,206) | ||||
Earnings (loss) per share: | ||||||
Basic | $ (0.31) | $ (0.39) | ||||
Diluted | $ (0.31) | $ (0.39) | ||||
Weighted average shares used to compute earnings (loss) per share: | ||||||
Basic | 174,044 | 170,408 | ||||
Diluted | 174,044 | 170,408 | ||||
RIBBON COMMUNICATIONS INC. | ||||||
Consolidated Balance Sheets | ||||||
(in thousands) | ||||||
(unaudited) | ||||||
December 31, | December 31, | |||||
2024 | 2023 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ 87,770 | $ 26,494 | ||||
Restricted cash | 2,709 | 136 | ||||
Accounts receivable, net | 254,718 | 268,421 | ||||
Inventory | 79,179 | 77,521 | ||||
Other current assets | 39,286 | 46,146 | ||||
Total current assets | 463,662 | 418,718 | ||||
Property and equipment, net | 60,364 | 41,820 | ||||
Intangible assets, net | 187,537 | 238,087 | ||||
Goodwill | 300,892 | 300,892 | ||||
Deferred income taxes | 88,982 | 69,761 | ||||
Operating lease right-of-use assets | 34,544 | 39,783 | ||||
Other assets | 26,573 | 35,092 | ||||
$ 1,162,554 | $ 1,144,153 | |||||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Current portion of term debt | $ 6,125 | $ 35,102 | ||||
Accounts payable | 87,759 | 85,164 | ||||
Accrued expenses and other | 106,251 | 91,687 | ||||
Operating lease liabilities | 9,443 | 15,739 | ||||
Deferred revenue | 119,295 | 113,381 | ||||
Total current liabilities | 328,873 | 341,073 | ||||
Long-term debt, net of current | 330,726 | 197,482 | ||||
Warrant liability | 8,064 | 5,295 | ||||
Preferred stock liability | - | 53,337 | ||||
Operating lease liabilities, net of current | 37,376 | 38,711 | ||||
Deferred revenue, net of current | 20,991 | 19,218 | ||||
Deferred income taxes | 5,941 | 5,616 | ||||
Other long-term liabilities | 25,962 | 30,658 | ||||
Total liabilities | 757,933 | 691,390 | ||||
Commitments and contingencies | ||||||
Stockholders' equity: | ||||||
Common stock | 18 | 17 | ||||
Additional paid-in capital | 1,970,708 | 1,958,909 | ||||
Accumulated deficit | (1,574,185) | (1,519,950) | ||||
Accumulated other comprehensive income | 8,080 | 13,787 | ||||
Total stockholders' equity | 404,621 | 452,763 | ||||
$ 1,162,554 | $ 1,144,153 | |||||
RIBBON COMMUNICATIONS INC. | |||||||
Consolidated Statements of Cash Flows | |||||||
(in thousands) | |||||||
(unaudited) | |||||||
Year ended | |||||||
December 31, | December 31, | ||||||
2024 | 2023 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ (54,235) | $ (66,206) | |||||
Adjustments to reconcile net income (loss) to cash flows provided by (used in) operating activities: | |||||||
Depreciation and amortization of property and equipment | 13,539 | 14,105 | |||||
Amortization of intangible assets | 50,862 | 56,891 | |||||
Amortization of debt issuance costs and original issue discount | 4,847 | 3,241 | |||||
Amortization of accumulated other comprehensive gain related to interest rate swap | (8,196) | (5,575) | |||||
Stock-based compensation | 16,086 | 21,806 | |||||
Deferred income taxes | (16,887) | (9,196) | |||||
Gain on sale of swap | - | (7,301) | |||||
Change in fair value of warrant liability | 2,769 | (201) | |||||
Change in fair value of preferred stock liability | 8,091 | 1,548 | |||||
Dividends accrued on preferred stock liability | 2,743 | 3,935 | |||||
Payment of dividends accrued on preferred stock liability | (6,686) | - | |||||
Foreign currency exchange (gains) losses | 5,741 | (44) | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 12,420 | 5,726 | |||||
Inventory | (3,616) | (10,701) | |||||
Other operating assets | 30,459 | 34,834 | |||||
Accounts payable | (6,016) | (10,498) | |||||
Accrued expenses and other long-term liabilities | (9,367) | (14,684) | |||||
Deferred revenue | 7,686 | (593) | |||||
Net cash provided by (used in) operating activities | 50,240 | 17,087 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (22,406) | (9,381) | |||||
Purchases of software licenses | (462) | (100) | |||||
Net cash provided by (used in) investing activities | (22,868) | (9,481) | |||||
Cash flows from financing activities: | |||||||
Borrowings under revolving line of credit | 44,106 | 97,000 | |||||
Principal payments on revolving line of credit | (44,106) | (97,000) | |||||
Proceeds from issuance of term debt | 342,300 | - | |||||
Principal payments of term debt | (237,145) | (95,058) | |||||
Payment of debt issuance costs | (6,312) | (1,685) | |||||
Proceeds from issuance of preferred stock and warrant liabilities | - | 53,350 | |||||
Payment of preferred stock liability | (56,850) | - | |||||
Proceeds from the exercise of stock options | 21 | 15 | |||||
Payment of tax obligations related to vested stock awards and units | (4,308) | (4,481) | |||||
Net cash provided by (used in) financing activities | 37,706 | (47,859) | |||||
Effect of exchange rate changes on cash and cash equivalents | (1,229) | (379) | |||||
Net increase (decrease) in cash and cash equivalents | 63,849 | (40,632) | |||||
Cash, cash equivalents and restricted cash, beginning of year | 26,630 | 67,262 | |||||
Cash, cash equivalents and restricted cash, end of period | $ 90,479 | $ 26,630 | |||||
RIBBON COMMUNICATIONS INC. | ||||||||||||
Supplemental Information | ||||||||||||
(in thousands) | ||||||||||||
(unaudited) | ||||||||||||
The following tables provide the details of stock-based compensation included as components of other line items in the Company's Consolidated Statements of Operations and the line items in which these amounts are reported. | ||||||||||||
Three months ended | Year ended | |||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||||
Stock-based compensation | ||||||||||||
Cost of revenue - product | $ 66 | $ 64 | $ 125 | $ 300 | $ 510 | |||||||
Cost of revenue - service | 288 | 291 | 550 | 1,325 | 2,147 | |||||||
Cost of revenue | 354 | 355 | 675 | 1,625 | 2,657 | |||||||
Research and development | 737 | 745 | 1,112 | 3,166 | 4,933 | |||||||
Sales and marketing | 1,178 | 1,108 | 1,438 | 4,397 | 7,111 | |||||||
General and administrative | 1,756 | 1,837 | 1,667 | 6,898 | 7,105 | |||||||
Operating expense | 3,671 | 3,690 | 4,217 | 14,461 | 19,149 | |||||||
Total stock-based compensation | $ 4,025 | $ 4,045 | $ 4,892 | $ 16,086 | $ 21,806 | |||||||
RIBBON COMMUNICATIONS INC. | |||||
Reconciliation of Non-GAAP and GAAP Financial Measures | |||||
(in thousands, except per share amounts) | |||||
(unaudited) | |||||
Three months ended | |||||
December 31, | September 30, | December 31, | |||
2024 | 2024 | 2023 | |||
GAAP Gross margin | 55.7 % | 52.1 % | 53.8 % | ||
Stock-based compensation | 0.2 % | 0.2 % | 0.3 % | ||
Amortization of acquired technology | 2.2 % | 3.0 % | 2.7 % | ||
Non-GAAP Gross margin | 58.1 % | 55.3 % | 56.8 % | ||
GAAP Net income (loss) | $ 6,364 | $ (13,422) | $ 7,079 | ||
Stock-based compensation | 4,025 | 4,045 | 4,892 | ||
Amortization of intangible assets | 11,785 | 12,780 | 13,166 | ||
Litigation costs | 1,583 | 6,896 | 538 | ||
Acquisition-, disposal- and integration-related | - | - | 1,494 | ||
Restructuring and related | 1,381 | 3,794 | 2,285 | ||
Preferred stock and warrant liability mark-to-market adjustment | 2,478 | (583) | 3,724 | ||
Tax indemnification write-off | 6,313 | - | - | ||
Tax effect of non-GAAP adjustments | (5,648) | (5,024) | (11,606) | ||
Non-GAAP Net income (loss) | $ 28,281 | $ 8,486 | $ 21,572 | ||
GAAP Diluted earnings (loss) per share | $ 0.04 | $ (0.08) | $ 0.04 | ||
Stock-based compensation | 0.02 | 0.02 | 0.03 | ||
Amortization of intangible assets | 0.06 | 0.08 | 0.08 | ||
Litigation costs | 0.01 | 0.04 | * | ||
Acquisition-, disposal- and integration-related | - | - | 0.01 | ||
Restructuring and related | 0.01 | 0.02 | 0.01 | ||
Preferred stock and warrant liability mark-to-market adjustment | 0.01 | * | 0.02 | ||
Tax indemnification write-off | 0.04 | - | - | ||
Tax effect of non-GAAP adjustments | (0.03) | (0.03) | (0.07) | ||
Non-GAAP Diluted earnings (loss) per share | $ 0.16 | $ 0.05 | $ 0.12 | ||
Weighted average shares used to compute diluted earnings (loss) per share | |||||
Shares used to compute GAAP diluted earnings (loss) per share | 175,321 | 174,613 | 171,755 | ||
Shares used to compute Non-GAAP diluted earnings (loss) per share | 178,703 | 177,028 | 172,990 | ||
GAAP Income (loss) from operations | $ 33,220 | $ (927) | $ 16,670 | ||
Depreciation | 3,408 | 3,361 | 3,502 | ||
Stock-based compensation | 4,025 | 4,045 | 4,892 | ||
Amortization of intangible assets | 11,785 | 12,780 | 13,166 | ||
Litigation costs | 1,583 | 6,896 | 538 | ||
Acquisition-, disposal- and integration-related | - | - | 1,494 | ||
Restructuring and related | 1,381 | 3,794 | 2,285 | ||
Non-GAAP Adjusted EBITDA | $ 55,402 | $ 29,949 | $ 42,547 | ||
* Less than | |||||
RIBBON COMMUNICATIONS INC. | |||
Reconciliation of Non-GAAP and GAAP Financial Measures | |||
(in thousands, except per share amounts) | |||
(unaudited) | |||
Year ended | |||
December 31, | December 31, | ||
2024 | 2023 | ||
GAAP Gross Margin | 52.7 % | 49.4 % | |
Stock-based compensation | 0.2 % | 0.3 % | |
Amortization of acquired technology | 3.0 % | 3.4 % | |
Non-GAAP Gross Margin | 55.9 % | 53.1 % | |
GAAP Net income (loss) | $ (54,235) | $ (66,206) | |
Stock-based compensation | 16,086 | 21,806 | |
Amortization of intangible assets | 50,862 | 56,891 | |
Litigation costs | 11,198 | 1,307 | |
Acquisition-, disposal- and integration-related | - | 4,476 | |
Restructuring and related | 10,160 | 16,209 | |
Preferred stock and warrant liability mark-to-market adjustment | 13,604 | 5,282 | |
Preferred stock and warrant liability issuance costs | - | 3,545 | |
Tax indemnification write-off | 6,313 | - | |
Tax effect of non-GAAP adjustments | (9,796) | (7,462) | |
Non-GAAP Net income (loss) | $ 44,192 | $ 35,848 | |
GAAP Diluted earnings (loss) per share | $ (0.31) | $ (0.39) | |
Stock-based compensation | 0.09 | 0.13 | |
Amortization of intangible assets | 0.29 | 0.33 | |
Litigation costs | 0.06 | 0.01 | |
Acquisition-, disposal- and integration-related | - | 0.03 | |
Restructuring and related | 0.06 | 0.09 | |
Preferred stock and warrant liability mark-to-market adjustment | 0.08 | 0.03 | |
Preferred stock and warrant liability issuance costs | - | 0.02 | |
Tax indemnification write-off | 0.04 | - | |
Tax effect of non-GAAP adjustments | (0.06) | (0.04) | |
Non-GAAP Diluted earnings (loss) per share | $ 0.25 | $ 0.21 | |
Weighted average shares used to compute diluted earnings (loss) per share | |||
Shares used to compute GAAP diluted earnings (loss) per share | 174,044 | 170,408 | |
Shares used to compute Non-GAAP diluted earnings (loss) per share | 177,306 | 172,947 | |
GAAP Income (loss) from operations | $ 16,872 | $ (24,285) | |
Depreciation | 13,539 | 14,105 | |
Stock-based compensation | 16,086 | 21,806 | |
Amortization of intangible assets | 50,862 | 56,891 | |
Litigation costs | 11,198 | 1,307 | |
Acquisition-, disposal- and integration-related | - | 4,476 | |
Restructuring and related | 10,160 | 16,209 | |
Non-GAAP Adjusted EBITDA | $ 118,717 | $ 90,509 | |
* Less than | |||
RIBBON COMMUNICATIONS INC. | |||||
Reconciliation of Non-GAAP and GAAP Financial Measures | |||||
(in thousands) | |||||
(unaudited) | |||||
Trailing Twelve Months | |||||
December 31, | September 30, | December 31, | |||
2024 | 2024 | 2023 | |||
GAAP Income (loss) from operations | $ 16,872 | $ 322 | $ (24,285) | ||
Depreciation | 13,539 | 13,633 | 14,105 | ||
Stock-based compensation | 16,086 | 16,953 | 21,806 | ||
Amortization of intangible assets | 50,862 | 52,243 | 56,891 | ||
Litigation costs | 11,198 | 10,153 | 1,307 | ||
Acquisition-, disposal- and integration-related | - | 1,494 | 4,476 | ||
Restructuring and related | 10,160 | 11,064 | 16,209 | ||
Non-GAAP Adjusted EBITDA | $ 118,717 | $ 105,862 | $ 90,509 | ||
RIBBON COMMUNICATIONS INC. | ||||||||||
Reconciliation of Non-GAAP and GAAP Financial Measures - Outlook | ||||||||||
(unaudited) | ||||||||||
Three months ending | Year ending | |||||||||
March 31, 2025 | December 31, 2025 | |||||||||
Midpoint (1) | Range | Midpoint (1) | Range | |||||||
Revenue ($ millions) | $ 190 | +/- | $ 880 | +/- | ||||||
Gross margin: | ||||||||||
GAAP outlook | 50.25 % | 52.0 % | ||||||||
Stock-based compensation | 0.20 % | 0.2 % | ||||||||
Amortization of acquired technology | 2.80 % | 2.3 % | ||||||||
Non-GAAP outlook | 53.25 % | +/- | 54.5 % | +/- | ||||||
Adjusted EBITDA ($ millions): | ||||||||||
GAAP income (loss) from operations | $ (6.4) | $ 49.7 | ||||||||
Depreciation | 3.6 | 15.8 | ||||||||
Stock-based compensation | 4.0 | 16.2 | ||||||||
Amortization of intangible assets | 11.5 | 44.1 | ||||||||
Litigation costs | 0.3 | 1.2 | ||||||||
Restructuring and related | 2.0 | 8.0 | ||||||||
Non-GAAP outlook | $ 15.0 | +/- | $ 135.0 | +/- | ||||||
(1) Q1 2025 and FY 2025 outlook represents the midpoint of the expected ranges | ||||||||||
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SOURCE Ribbon Communications Inc.
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