Harmonic (HLIT) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $138.7 million, down 11% year-over-year but up 14% sequentially, at the high end of guidance for both broadband and video segments.

• Profitability improved in both broadband and video segments due to right-sizing actions and a growing pipeline of new SaaS and appliance opportunities, despite year-over-year declines.

• Net loss for Q2 2024 was $12.5 million, driven by lower revenue and $20.5 million in restructuring and lease-related impairment charges.

• Full-year 2024 revenue guidance for both broadband ($460M–$500M) and video ($185M–$195M) segments was reaffirmed.

• The company remains confident in its multi-year growth outlook, supported by technology leadership and favorable industry dynamics.

Financial highlights

• Q2 2024 total revenue was $138.7 million, down from $156 million year-over-year but up 14% sequentially.

• Q2 non-GAAP EPS was $0.08; GAAP net loss was $12.5 million, including $11.5 million in restructuring costs and $9 million in lease-related asset impairments.

• Adjusted EBITDA for Q2 was $16.1 million, down from $21.1 million in Q2 2023 but up from $4.1 million in Q1 2024.

• Q2 gross margin was 53.1% (non-GAAP), with broadband at 47.6% and video at 64.4%.

• Bookings for Q2 were $72.4 million, with a book-to-bill ratio of 0.5; backlog and deferred revenue stood at $613.1 million.

Outlook and guidance

• FY24 total revenue expected between $645–$695 million, gross margin 51.6%–53.2%, adjusted EBITDA $102–$131 million, and non-GAAP EPS $0.56–$0.75.

• Broadband FY24 revenue guidance reaffirmed at $460–$500 million, with record revenue expected in Q3 and Q4.

• Video FY24 revenue expected between $185–$195 million, with gross margins of 63%–64% and adjusted EBITDA $0–$5 million.

• Q3 2024 company revenue expected at $175–$190 million, EPS $0.19–$0.24.

• 52% of backlog and deferred revenue is expected to be shipped or serviced within the next 12 months.