Q2 2024 Calix Inc Earnings Call Transcript
Key Points
- Calix Inc (CALX) achieved record gross margins in Q2 2024, driven by robust expansion in platform, cloud, and managed services.
- The company added 24 new broadband service provider (BSP) customers in Q2, up from 10 in Q1, indicating strong market adoption.
- Remaining performance obligations (RPOs) grew by 9% sequentially and 25% year-over-year, reflecting strong customer commitments.
- Calix Inc (CALX) maintained a debt-free balance sheet with cash and investments totaling $261 million, marking the fifth consecutive quarter of double-digit free cash flow.
- The company closed its largest platform, cloud, and managed services deal in Q3, setting a new record and demonstrating continued momentum.
- Revenue for Q2 2024 was $198 million, which, while within guidance, indicates a challenging market environment.
- Non-GAAP operating expenses were $104 million, reflecting high costs despite a $4 million decrease from the prior quarter.
- The company is experiencing smaller order sizes, which may impact future revenue growth.
- High interest rates and increased competition are causing some customers to reconsider their business models and slow down investments.
- The BEAD program, while promising, is expected to start contributing to revenue only in early 2025, indicating a delay in realizing its benefits.
Greetings, everyone. Welcome to the Calix Second-Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the brief prepared remarks. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Jim Fanucchi, Vice President of Investor Relations. Sir, please go ahead.
Thank you, Rob and good morning, everyone. Thank you for joining our second quarter 2024 earnings call. Today on the call we have President and CEO, Michael Weening; and Chief Financial Officer, Cory Sindelar. As a reminder, yesterday after the market closed, Calix issued a news release which was furnished on our Form 8-K along with our stockholder letter, and was also posted in the Investor Relations Section of the Calix website. Today's conference call will be available for webcast replay in the Investor Relations Section of our website.
Before I turn the call over to Michael
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