Ribbon Communications Inc. Reports Third Quarter 2024 Financial Results

Strong Profitability Exceeds Expectations: Cloud & Edge Revenue Grew 11% YoY and 16% QoQ

PLANO, Texas , /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a global provider of real time communications technology and IP optical networking solutions to many of the world's largest service providers, enterprises, and critical infrastructure operators to modernize and protect their networks, today announced its financial results for the third quarter of 2024.

Revenue for the third quarter of 2024 was $210 million, compared to $203 million for the third quarter of 2023 and $193 million for the second quarter of 2024. GAAP Loss from Operations was ($1 million) while Non-GAAP Adjusted EBITDA improved to $30 million, or 14% of sales, in the third quarter 2024. GAAP and Non-GAAP Gross Margins were strong at 52% and 55%, respectively.

"I am very pleased with our financial performance in the third quarter with overall sales growing 3.5% year over year, led by strong growth in our Cloud & Edge secure communications business. Gross Margin exceeded expectations with a positive mix of product sales and good execution from our Professional Services team, resulting in profitability at the high end of our guidance range," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications.

Mr. McClelland added, "We expect this momentum to continue into the fourth quarter and into 2025 as we continue to ramp voice modernization programs with Verizon and multiple other carriers, execute on new awards with U.S. Federal Defense agencies, and to grow the U.S. rural broadband segment. Our guidance for the fourth quarter projects year-over-year sales growth of 8% at the midpoint, reflecting all of these trends along with seasonal strength in Enterprise."

"I am very excited to be joining Ribbon at this inflection point in the business and look forward to applying my telecom experience at Verizon and Vodafone to the supplier side of the ecosystem. Ribbon plays an important role in the implementation and support of strategic communication services across many of the largest and most sensitive networks in the world and has a great opportunity to substantially grow its presence and generate shareholder value," said John Townsend, Chief Financial Officer of Ribbon Communications effective November 1, 2024.

Business Outlook For the fourth quarter of 2024, the Company expects sequential growth in both of our businesses with revenue in a range of $235 million to $255 million. Non-GAAP gross margin is projected in a range of 55.5% to 56%. Adjusted EBITDA is projected in a range of $46 million to $52 million.

The Company's outlook is based on current indications for its business, which are subject to change.