Calix (CALX) Q4 2024 earnings summary

Executive summary

• Fourth quarter 2024 saw strong demand and revenue of $206 million, at the high end of guidance and up 2.6% sequentially.

• Growth driven by platform, cloud, and managed services, with 18 new broadband service provider customers, mostly competitive takeaways.

• Record non-GAAP gross margin of 55.5% achieved, reflecting operational strength and business model adoption.

• Released unaudited financial results for the fourth quarter of 2024, with details available in a letter to stockholders.

• Scheduled a conference call with CEO and CFO to discuss results and provide forward-looking information.

Financial highlights

• Revenue reached $206 million, up 2.6% sequentially from Q3 2024.

• Non-GAAP gross margin hit a record 55.5% in Q4 2024.

• RPOs totaled $326 million, up 10% sequentially and 34% year-over-year; current RPOs at $121 million, up 27% year-over-year.

• Ended the year with record cash and investments of $297 million after $7 million in share repurchases.

Outlook and guidance

• Q1 2025 revenue guidance is $204–$210 million, representing sequential growth at the midpoint.

• Non-GAAP gross margin expected to remain flat to slightly up in Q1 2025; annual gross margin improvement for 2025 anticipated at the lower end of the 100–200 basis point target.

• Operating expenses for 2025 planned to be flat to slightly up versus 2024.

• Sequential revenue growth of 1–5% expected going forward, with double-digit growth anticipated by the second half of 2025, excluding BEAD impact.