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 added, mostly from competitive takeaways.

• The business model focuses on helping customers transition from speed-based operators to broadband experience providers, driving community engagement and differentiation.

• 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 in Q4 2024, up 2.6% sequentially.

• Record non-GAAP gross margin of 55.5% achieved in the quarter.

• RPOs (remaining performance obligations) grew 10% sequentially to $326 million and 34% year-over-year.

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

• DSO at 36 days, inventory turns at 3.1 (over 4 excluding component inventory), and inventory deposits down to $63 million.

Outlook and guidance

• Q1 2025 revenue expected between $204 million and $210 million, representing sequential growth.

• Non-GAAP gross margin for Q1 2025 expected to remain flat to slightly up; 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 compared to 2024.

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