Ribbon Communications (RBBN) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $251 million, up 11% year-over-year, with full-year revenue at $834 million, driven by strong sales to U.S. Tier 1 providers, federal/defense, enterprise, and international markets.

• Adjusted EBITDA for Q4 was $55 million (22% margin), up 30% year-over-year; full-year adjusted EBITDA was $119 million (14% margin), up 31%.

• Gross margin improved to 58% in Q4 and 56% for the year, with non-GAAP net income of $28 million in Q4 and $44 million for the year.

• Ended 2024 with $90 million in cash and a net debt leverage ratio of 2.2x.

• Growth was supported by record Cloud & Edge sales, federal agency expansion, and strong performance in APAC and India.

Financial highlights

• Q4 2024 revenue was $251 million, up 11% year-over-year; full-year revenue was $834 million, up 1%.

• Q4 non-GAAP gross margin was 58.1%, up 130 bps; full-year non-GAAP gross margin was 55.9%, up 280 bps.

• Q4 non-GAAP net income was $28 million, up $7 million year-over-year; full-year non-GAAP net income was $44 million, up 22%.

• Q4 adjusted EBITDA was $55 million, up 30% year-over-year; full-year adjusted EBITDA was $119 million, up 31%.

• Free cash flow for Q4 was $54 million; full-year free cash flow was $28 million.

Outlook and guidance

• 2025 revenue projected at $870–$890 million, implying 5% year-over-year growth at midpoint.

• Q1 2025 revenue guidance is $185–$195 million; adjusted EBITDA guidance is $12–$18 million.

• 2025 adjusted EBITDA projected at $130–$140 million; non-GAAP gross margin expected at 54%–55%.

• Cloud & Edge segment expected to grow product and professional services revenue by ~10%, with maintenance flat.

• IP Optical segment projected to grow ~5% year-over-year, or >10% excluding Eastern Europe.