Q3 2024 Calix Inc Earnings Call Transcript
Key Points
- Calix Inc (CALX) delivered revenue of $201 million in the third quarter, representing a 1.4% sequential growth, which was within the guidance range provided.
- The company achieved a record non-GAAP gross margin of 55.4% in the third quarter.
- Remaining performance obligations (RpoS) grew to $296 million, an increase of 11% sequentially and 35% year over year.
- Calix Inc (CALX) added 13 new customers in the third quarter, with several expanding their use of the Calix platform, cloud, and managed services.
- Cash and investments reached a record $288 million at the end of the third quarter, with a significant portion from free cash flow.
- Buying patterns for appliances are beginning to normalize, but remain modest in the near term.
- Non-GAAP operating expenses increased by $1 million from the prior quarter, primarily due to marketing expenses.
- The guidance for the fourth quarter indicates only modest sequential revenue growth of 1.5% at the midpoint.
- The rollout of BEAD funding is expected to be slow, with most states 9 to 12 months away from making awards.
- The company faces challenges in convincing broadband providers to transition from being network operators to experience providers.
Greetings and welcome to the Calix third quarter, 2024 earnings conference call.
This time, all participants are in listen-only mode.
A question-and-answer session will follow the brief prepared remarks (operator instruction). As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Nancy Fazioli, Vice President of Investor Relations. Please go ahead.
Thank you, Rob and good morning, everyone. Thank you for joining our third 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 a form 8-K along with our stockholder letter. It was also posted on 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 for his opening
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