1. RBBN's revenue grew 11% YoY to $251 million in Q4 2024. 2. Q4 GAAP Operating Income increased to $33 million from $17 million in Q4 2023. 3. Projected revenue for 2025 is $870-$890 million, showing continued growth. 4. Success in sales attributed to U.S. service providers and federal agencies. 5. Company expects strong performance supported by network modernization initiatives.
RBBN showed strong financial performance, especially in revenue growth. Similar growth trajectories in tech stocks can lead to higher investor confidence.
The financial results and growth outlook are crucial indicators for future performance of RBBN’s stock. Strong quarterly results can bolster market confidence.
Sustained revenue growth projections provide a foundation for long-term stock appreciation, similar to previous tech recoveries.
PLANO, Texas, Feb. 12, 2025 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a prominent supplier of real-time communications technology and IP optical networking solutions, today announced its financial results for the fourth quarter and the full year of 2024. Ribbon Communications is dedicated to assisting the world's largest service providers, enterprises, and critical infrastructure operators in modernizing and safeguarding their networks and services.
Revenue for the fourth quarter of 2024 was $251 million, compared to $226 million for the fourth quarter of 2023 and $210 million for the third quarter of 2024. GAAP Operating Income was $33 million, compared to $17 million for the fourth quarter of 2023. Quarterly Non-GAAP Adjusted EBITDA increased by 30% year over year to $55 million, or 22% of sales.
For the full year 2024, Revenue was $834 million, compared to $826 million for the full year 2023. GAAP Operating Income was $17 million, compared to a loss of ($24) million for 2023. Non-GAAP Adjusted EBITDA improved by 31% to $119 million, or 14% of sales. GAAP and Non-GAAP Gross Margins for the full year increased approximately 300 basis points to 53% and 56% respectively, with improvement in both operating segments.
"Our fourth quarter results were very strong across all key financial metrics, achieving record levels of revenue, near the top end of our guidance, and profitability, exceeding our guidance. We believe this is a clear validation of our strategy and a culmination of the effort over the last several years to diversify and drive profitable growth in both Service Provider and Enterprise markets," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications.
"Revenue growth was underpinned by higher sales to U.S. Tier One Service Providers, U.S. Federal Defense agencies, and Enterprise customers. We also had solid contribution from U.S. Rural Broadband, Europe, and India. When combined with robust margins and our continued operational expense control, profitability improved more than 30% compared to 2023," Mr. McClelland added. "It is especially satisfying to generate Adjusted EBITDA for the full year at the high end of our original guidance range despite the suspension of shipments to Eastern Europe. Our visibility has improved, and we anticipate further momentum in 2025 as the industry-wide focus on network modernization and the investment in fiber networks drives a strong growth cycle."
| Category | 2024 | 2023 |
|---|---|---|
| GAAP Revenue | $251 million | $226 million |
| GAAP Operating Income | $33 million | $17 million |
| Non-GAAP Adjusted EBITDA | $55 million | $43 million |
For 2025, the Company expects profitable growth in both operating segments, with continued momentum from network modernization across Service Providers, Enterprise, and Federal and Defense customers. We expect a normal seasonal pattern with the business accelerating as the year progresses.
For the full year 2025, the Company projects revenue of $870 million to $890 million. Non-GAAP gross margin is projected in a range of 54% to 55%. Adjusted EBITDA is projected in a range of $130 million to $140 million.
Date: Wednesday, February 12, 2025
Time: 4:30 p.m. (ET)
For more details on financial results, please visit investors.ribboncommunications.com.
Investor Relations: +1 (978) 614-8050
Email: ir@ribboncommunications.com
Media Contact: Catherine Berthier
Phone: +1 (646) 741-1974
Email: catherine.berthier@ribboncommunications.com