Financial Performance - Fourth quarter 2024 revenue reached $251 million, an increase of 11% year-over-year from $226 million in Q4 2023[4] - GAAP operating income for Q4 2024 was $33 million, compared to $17 million in Q4 2023, reflecting strong profitability growth[4] - Non-GAAP adjusted EBITDA for Q4 2024 increased by 30% year-over-year to $55 million, representing 22% of sales[4] - Full year 2024 revenue was $834 million, slightly up from $826 million in 2023, with a GAAP operating income turnaround from a loss of $24 million in 2023 to a profit of $17 million[5] - Non-GAAP adjusted EBITDA for the full year 2024 improved by 31% to $119 million, or 14% of sales[5] - Total revenue for Q4 2024 was $251,359,000, an increase of 19.6% from $210,238,000 in Q3 2024 and a 11.0% increase from $226,401,000 in Q4 2023[33] - Gross profit for Q4 2024 was $140,073,000, resulting in a gross margin of 55.7%, compared to 52.1% in Q3 2024 and 53.8% in Q4 2023[33] - Net income for Q4 2024 was $6,364,000, a significant improvement from a net loss of $13,422,000 in Q3 2024 and a net income of $7,079,000 in Q4 2023[33] - For the year ended December 31, 2024, total revenue was $833,881,000, up from $826,339,000 in 2023, with product revenue slightly increasing to $447,229,000 from $445,150,000[35] - The company reported a gross margin of 52.7% for the year ended December 31, 2024, compared to 49.4% in 2023[35] - GAAP net loss for the year ended December 31, 2024, was $54,235, compared to a net loss of $66,206 for the year ended December 31, 2023, representing a 18.4% improvement[47] - Non-GAAP net income for the year ended December 31, 2024, was $44,192, up from $35,848 in 2023, reflecting a 23.3% increase[47] - GAAP gross margin improved to 52.7% for the year ended December 31, 2024, compared to 49.4% in 2023, indicating a 3.3 percentage point increase[47] - Non-GAAP adjusted EBITDA for the year ended December 31, 2024, was $118,717, compared to $90,509 in 2023, representing a 31.1% increase[47] Future Projections - The company anticipates 2025 revenue between $870 million and $890 million, with adjusted EBITDA projected at $130 million to $140 million[12] - For Q1 2025, revenue is projected to be between $185 million and $195 million, with adjusted EBITDA expected to range from $12 million to $18 million[12] - For Q1 2025, the revenue outlook is set at a midpoint of $190 million, with a range of +/-$5 million, while the full year 2025 revenue is projected at $880 million, with a range of +/-$10 million[51] - The GAAP gross margin outlook for Q1 2025 is 50.25%, expected to improve to 52.0% for the full year 2025[51] - Non-GAAP gross margin is projected at 53.25% for Q1 2025, with a slight variation of +/-0.25%, and 54.5% for the full year 2025, with a variation of +/-0.5%[51] - The company anticipates a GAAP income from operations of $(6.4) million for Q1 2025, improving to $49.7 million for the full year 2025[51] Cash and Liabilities - The company reported a year-end cash position of $90 million, benefiting from higher collections and operational efficiency[10] - Cash and cash equivalents increased to $87,770,000 as of December 31, 2024, compared to $26,494,000 in 2023[37] - Cash and cash equivalents at the end of the period increased to $90,479 from $26,630 at the beginning of the year, a significant increase of 239.5%[39] - Total liabilities as of December 31, 2024, were $757,933,000, an increase from $691,390,000 in 2023[37] Operational Efficiency - The company reported a significant increase in accounts receivable, which rose to $12,420 from $5,726, a 117.0% increase[39] - Net cash provided by operating activities increased significantly to $50,240 for the year ended December 31, 2024, compared to $17,087 for the previous year, marking a 194.5% increase[39] - The company expects continued growth driven by network modernization across service providers, enterprise, and federal customers in 2025[11] - The fourth quarter saw a book-to-bill ratio of 1.1x, indicating strong demand and sales momentum[10] Costs and Expenses - Total stock-based compensation for the year was $16,086, down from $21,806 in 2023, a decrease of 26.4%[47] - Stock-based compensation is expected to be $4.0 million for Q1 2025 and $16.2 million for the full year 2025[51] - Litigation costs are projected at $0.3 million for Q1 2025 and $1.2 million for the full year 2025[51] - Restructuring and related costs are estimated at $2.0 million for Q1 2025 and $8.0 million for the full year 2025[51] - The company reported litigation costs of $11,198 million for the trailing twelve months, compared to $1,307 million in the previous year[49] Adjusted Measures - Adjusted EBITDA is used as a supplemental measure to assess performance, excluding non-cash and non-operational expenses[30] - The company expects to continue marking the Warrant liability to market each reporting period until it is settled[27] - The company wrote off a $6 million tax indemnity asset related to its 2020 acquisition of ECI Telecom Group Ltd. upon its expiration[28] - GAAP income from operations for the trailing twelve months was $16,872 million, a significant improvement from a loss of $24,285 million in the previous year[49] - Non-GAAP Adjusted EBITDA increased to $118,717 million, up from $90,509 million year-over-year, reflecting a strong operational performance[49]

Core Insights - Ribbon Communications Inc. reported record quarterly sales and operating income, with a revenue growth of 11% year-over-year driven by strong demand from service providers, enterprise customers, and U.S. federal agencies [1][4] Financial Performance - Fourth quarter 2024 revenue was $251 million, up from $226 million in Q4 2023 and $210 million in Q3 2024. GAAP operating income was $33 million, compared to $17 million in Q4 2023. Non-GAAP adjusted EBITDA increased by 30% year-over-year to $55 million, representing 22% of sales [2][3] - For the full year 2024, revenue reached $834 million, slightly up from $826 million in 2023. GAAP operating income improved to $17 million from a loss of $24 million in 2023. Non-GAAP adjusted EBITDA rose by 31% to $119 million, or 14% of sales [3][6] Market Demand and Growth Drivers - Revenue growth was supported by increased sales to U.S. Tier One service providers, federal defense agencies, and enterprise customers, with notable contributions from U.S. rural broadband, Europe, and India. Profitability improved by over 30% compared to 2023 [5][7] - The company anticipates further momentum in 2025, driven by industry-wide focus on network modernization and investments in fiber networks [5][8] Business Outlook - For 2025, the company projects revenue between $870 million and $890 million, with non-GAAP gross margins expected to be in the range of 54% to 55%. Adjusted EBITDA is projected to be between $130 million and $140 million [9][10] - The first quarter of 2025 is expected to generate revenue between $185 million and $195 million, with non-GAAP gross margins projected at 53% to 53.5% [9]

Core Insights - Ribbon Communications Inc. has announced the deployment of a managed optical network for EENet of HTM, enhancing network management for the Estonian Education and Research Network [1][2] - The network features Ribbon's Apollo programmable optical networks, offering flexibility with coherent wavelength solutions ranging from 100G to 1.2T and supporting layer 1 optical encryption [2][3] - EENet is utilizing Ribbon's Muse Multilayer Automation Platform to optimize IP Optical network investments through comprehensive control and planning applications [3][4] Company Overview - Ribbon Communications provides communications software and IP optical networking solutions globally, focusing on modernizing networks for improved competitive positioning [5] - The company emphasizes its commitment to Environmental, Social, and Governance (ESG) matters, providing an annual Sustainability Report to stakeholders [5]

Core Viewpoint - Ribbon Communications Inc. will report its financial results for Q4 and the full year of 2024 on February 12, 2025, followed by a conference call to discuss the results [1] Group 1: Financial Reporting - The financial results will be released after the market closes on February 12, 2025 [1] - A conference call will be held at 4:30 p.m. ET to discuss the financial results with the financial community [1][2] Group 2: Company Overview - Ribbon Communications provides communications software, IP, and optical networking solutions to service providers, enterprises, and critical infrastructure sectors globally [3] - The company focuses on modernizing networks to improve competitive positioning and business outcomes in a data-driven environment [3] - Ribbon offers a comprehensive portfolio that includes software-centric solutions, cloud-native offerings, security, analytics tools, and networking solutions for 5G [3] - The company is committed to Environmental, Social, and Governance (ESG) matters and publishes an annual Sustainability Report [3]

Facilitates high-speed, scalable, and cost-effective data transfer PLANO, Texas, Dec. 11, 2024 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), which helps many of the world's largest service providers, enterprises and critical infrastructure operators modernize and protect their networks with its state-of-the-art real time communications technology and IP optical networking solutions, announced that Diabolocom has selected Ribbon's high density Data Center Interconnect (DCI) solution. The solutio ...

Ribbon Communications (RBBN) has significantly expanded its presence in Thailand and solidified its role in the region. The company began manufacturing key IP Optical products in Thailand in 2023. These products include advanced platforms such as the Apollo 9408 and 9600, which offer high-density, low-power optical transport solutions essential for modern network infrastructures.The expansion supports Ribbon Communications' strategy to meet the rising demand for high-performance networking solutions, especi ...

Core Insights - Ribbon Communications has successfully completed a long haul DWDM deployment for Airtel, enhancing Airtel's capabilities to meet the growing demand for 5G and high-speed connectivity [1][2] - Airtel has integrated Ribbon's Apollo 9600 suite, providing 51.2 Tbps of long haul network capacity, which effectively addresses its increasing bandwidth requirements [2] - Ribbon's Muse platform enhances operational efficiency through operator-defined workflow automation and real-time network monitoring [2] Company Overview - Ribbon Communications specializes in real-time communications technology and IP optical networking solutions, focusing on modernizing networks for improved competitive positioning [2] - Airtel is a leading global communications provider with over 550 million customers across 17 countries, ranking among the top three mobile operators globally [3] - Airtel's service offerings include high-speed mobile broadband, digital payments, and a range of enterprise solutions such as secure connectivity and cloud services [3]

Core Viewpoint - Ribbon Communications' stock surged despite Q3 sales and earnings results missing analyst expectations, driven by encouraging forward guidance for Q4 [1][2]. Financial Performance - Q3 non-GAAP earnings per share were $0.05, with sales of $210.24 million, falling short of the average analyst estimates of $0.05 per share on sales of approximately $212.1 million [2]. - Revenue increased by roughly 3% year-over-year, supported by growth in the cloud and edge secure communications business [2]. - Adjusted earnings per share remained flat compared to the prior year [2]. Q4 Guidance - Ribbon provided guidance for Q4 sales between $235 million and $255 million, indicating a potential sequential sales growth of approximately 17% and annual growth of about 8% compared to last year's $226 million [3]. - The projected adjusted gross margin for Q4 is between 55.5% and 56%, suggesting a moderate increase from the 55% margin in Q3 [3]. Growth Drivers - The anticipated sales increase is linked to expanding business with Verizon Communications, new contracts with U.S. defense agencies, and growth in the U.S. rural broadband segment [4]. - The better-than-expected guidance has contributed to a positive sentiment among investors [4].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38267 RIBBON COMMUNICATIONS INC. (Exact name of Registrant as specified in its charter) Delaware 82-166969 ...

Ribbon Communications (RBBN) came out with quarterly earnings of $0.05 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.05 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this maker of technology for telephone services over internet networks would post earnings of $0.04 per share when it actually produced earnings of $0.05, delivering a surprise of 25%.Over the last four quarters, the company has surpassed cons ...