Ribbon munications (RBBN) - 2024 Q4 - Annual Results

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]