{"id":812270,"date":"2025-02-12T16:08:29","date_gmt":"2025-02-12T21:08:29","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/ribbon-communications-inc-reports-fourth-quarter-and-full-year-2024-financial-results\/"},"modified":"2025-02-12T16:08:29","modified_gmt":"2025-02-12T21:08:29","slug":"ribbon-communications-inc-reports-fourth-quarter-and-full-year-2024-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/ribbon-communications-inc-reports-fourth-quarter-and-full-year-2024-financial-results\/","title":{"rendered":"Ribbon Communications Inc. Reports Fourth Quarter and Full Year 2024 Financial Results"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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\n Record Quarterly Sales and Operating Income<\/i>\n <\/p>\n

\n Revenue Grows 11% YoY with Strong Demand from Service Providers, Enterprise Customers, and U.S. Federal Agencies<\/i>\n <\/p>\n

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\n PLANO, Texas<\/span>
\n <\/span>, Feb. 12, 2025<\/span><\/span> \/PRNewswire\/ — Ribbon Communications Inc.<\/b><\/a> (Nasdaq: RBBN), a prominent supplier of real-time communications technology and IP optical networking solutions, today announced its financial results for the fourth quarter and the full year of 2024. Ribbon Communications is dedicated to assisting the world’s largest service providers, enterprises, and critical infrastructure operators in modernizing and safeguarding their networks and services.<\/p>\n

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\n
\n \"(PRNewsfoto\/Ribbon
\n <\/a>\n <\/p>\n<\/p><\/div>\n

Revenue for the fourth quarter of 2024 was $251 million<\/span>, compared to $226 million<\/span> for the fourth quarter of 2023 and $210 million<\/span> for the third quarter of 2024. GAAP Operating Income was $33 million<\/span>, compared to $17 million<\/span> for the fourth quarter of 2023. Quarterly Non-GAAP Adjusted EBITDA increased by 30% year over year to $55 million<\/span>, or 22% of sales.<\/p>\n

For the full year 2024, Revenue was $834 million<\/span>, compared to $826 million<\/span> for the full year 2023. GAAP Operating Income was $17 million<\/span>, compared to a loss of ($24) million<\/span> for 2023. Non-GAAP Adjusted EBITDA improved by 31% to $119 million<\/span>, or 14% of sales. GAAP and Non-GAAP Gross Margins for the full year increased approximately 300 basis points to 53% and 56% respectively, with improvement in both operating segments.<\/p>\n

“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<\/span>, President and Chief Executive Officer of Ribbon Communications.<\/p>\n

“Revenue growth was underpinned by higher sales to U.S. Tier One Service Providers, U.S. Federal Defense agencies, and Enterprise customers. We also had solid contribution from U.S. Rural Broadband, Europe<\/span>, and India<\/span>. When combined with robust margins and our continued operational expense control, profitability improved more than 30% compared to 2023,” Mr. McClelland added. “It is especially satisfying to generate Adjusted EBITDA for the full year at the high end of our original guidance range despite the suspension of shipments to Eastern Europe<\/span>. Our visibility has improved, and we anticipate further momentum in 2025 as the industry-wide focus on network modernization and the investment in fiber networks drives a strong growth cycle.”<\/p>\n

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\n
\n Financial Highlights <\/b>
\n 1<\/sup>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n Three months ended<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n Year ended<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n December 31,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n December 31,<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n
\n In millions, except per share amounts<\/i>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2024<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2023<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2024<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2023<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n GAAP Revenue<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 251<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 226<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 834<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 826<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n GAAP Net income (loss)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 7<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 (54)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 (66)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Non-GAAP Net income (loss)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 28<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 22<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 44<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 36<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Non-GAAP Adjusted EBITDA<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 55<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 43<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 119<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 91<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n GAAP diluted earnings (loss) per share\u00a0<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.04<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.04<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0 \u00a0 \u00a0 \u00a0(0.31)<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0 \u00a0 \u00a0 \u00a0(0.39)<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Non-GAAP diluted earnings (loss) per share<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.16<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.12<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.25<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n $\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 0.21<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Weighted average shares outstanding basic<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 175<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 172<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 174<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 170<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Weighted average shares outstanding diluted<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 179<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 173<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 177<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 173<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n<\/table><\/div>\n
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\n

\n
\n 1 <\/sup>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.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

“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 $90 million<\/span>. I’m very excited about our growth prospects for 2025,” said John Townsend<\/span>, Chief Financial Officer of Ribbon Communications.<\/p>\n

\n Business Outlook2 <\/sup>\u00a0
<\/b>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.<\/p>\n

For the full year 2025, the Company projects revenue of $870 million<\/span> to $890 million<\/span>. Non-GAAP gross margin is projected in a range of 54% to 55%. Adjusted EBITDA is projected in a range of $130 million<\/span> to $140 million<\/span>.<\/p>\n

For the first quarter of 2025, the Company projects revenue of $185 million<\/span> to $195 million<\/span>. Non-GAAP gross margin is projected in a range of 53% to 53.5%. Adjusted EBITDA is projected in a range of $12 million<\/span> to $18 million<\/span>.<\/p>\n

The Company’s outlook is based on current indications for its business, which are subject to change.<\/p>\n

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\n
\n 2<\/sup>\u00a0GAAP 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.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Upcoming Conference Schedule<\/b>\n <\/p>\n