Calix (CALX) Q2 2024 earnings summary

Executive summary

• Achieved Q2 2024 revenue of $198.1 million, within guidance but down 24% year-over-year due to delayed customer purchasing and government stimulus evaluation.

• Record non-GAAP gross margin of 55.1% and GAAP gross margin of 54.3%, driven by platform, cloud, and managed services.

• Net loss for Q2 2024 was $8.0 million, compared to net income of $9.4 million in Q2 2023.

• Added 24 new broadband service provider customers in Q2, up from 10 in Q1, reflecting strong market adoption.

• Announced unaudited Q2 2024 results and scheduled a conference call to discuss performance and outlook.

Financial highlights

• Q2 revenue was $198.1 million, matching guidance but down $62.9 million year-over-year.

• Non-GAAP gross margin reached a record 55.1%; GAAP gross margin was 54.3%.

• Non-GAAP operating expenses were $104 million, down $4 million sequentially; GAAP operating expenses were $119 million.

• Cash and investments totaled $261.2 million as of June 29, 2024, up $22 million sequentially.

• Fifth consecutive quarter of double-digit free cash flow; operating cash flow for the first six months was $37.0 million.

Outlook and guidance

• Q2 is expected to be the low point for 2024 revenue; Q3 revenue guidance is $198–$204 million with sequential growth anticipated.

• BEAD-related orders expected to begin in early 2025, with meaningful revenue impact as more states complete program steps.

• Quarterly growth rate projected at 1–5% for the next several quarters, moving to the middle of that range by end of 2025.

• Management expects investments in sales, marketing, and R&D to remain relatively flat in absolute dollars.

• Existing liquidity is believed sufficient for at least the next twelve months.