Harmonic (HLIT) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 revenue of $679M, with Q4 revenue at $222.2M, up 33% year-over-year, driven by strong Broadband growth and a return to profitability in the Video segment.

• Broadband segment led growth, reaching $488.2M in 2024 revenue and $171M in Q4, up 48% year-over-year, with technology leadership in DOCSIS 4.0 and Fiber.

• Video segment returned to profitability, with Q4 SaaS revenue of $15.1M, EBITDA of $7.8M, and SaaS customer base up 74%.

• Announced a $200M three-year share repurchase program, doubling the previous authorization.

• Strong cash flow and liquidity, with $101.5M in cash and $46.2M in Q4 free cash flow.

Financial highlights

• Q4 2024 total company revenue rose 33% year-over-year to $222.2M; adjusted EPS up 246% to $0.45; Q4 Adjusted EBITDA reached $71.8M.

• Broadband revenue reached $171M and EBITDA $64.1M, both record levels; Video revenue was $51.1M, with EBITDA at $7.8M.

• Q4 gross margin was 56.1%, with Broadband at 52.7% and Video at 67.4%, both up significantly year-over-year.

• Cash balance at year-end was $101.5M, up $43.3M sequentially.

• Bookings in Q4 were $150M, with a book-to-bill ratio of 0.7; backlog and deferred revenue at Q4 end was $496.3M.

Outlook and guidance

• 2025 total revenue guidance: $585M–$645M; Q1 2025 revenue: $120M–$135M.

• 2025 Broadband revenue expected between $400M–$450M, gross margin 51%–54%, adjusted EBITDA $77M–$106M.

• Video segment 2025 revenue expected at $185M–$195M, gross margin 63%–65%, adjusted EBITDA $8M–$17M, with SaaS growth expected.

• 2025 EPS guidance: $0.43–$0.68; non-GAAP tax rate at 20%.

• Management expects above-market growth to resume in 2026 as Unified DOCSIS 4.0 ramps.