Projecting Strong 1H25 with 5-8% YoY Revenue Growth
Backlog Increased 35% on Growing Service Provider Demand
Federal and Enterprise Deal Timing Affected 1Q25 Results but Delivering in 2Q
PLANO, Texas, April 29, 2025 -- Ribbon Communications Inc. (Nasdaq: RBBN), a leading supplier of real-time communications technology and IP optical networking solutions, today announced its financial results for the first quarter of 2025. 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.
First Quarter 2025 Highlights
Financial Highlights¹:
- Revenue was $181 million, compared to $180 million for the first quarter of 2024
- GAAP Gross Margin was 45.4%, compared to 51.2% for the first quarter of 2024
- Non-GAAP Gross Margin was 48.6%, compared to 55.1% for the first quarter of 2024
- GAAP Operating Loss was ($20) million, compared to ($13) million for the first quarter of 2024
- Non-GAAP Adjusted EBITDA was $6 million, compared to $12 million for the first quarter of 2024
"We continue to expect a strong first half for 2025 with sales projected to increase 5-8% year over year, overcoming the reduction in Eastern Europe revenue that began in the second quarter of 2024. In the first quarter, sales to Service Providers increased more than 10% year over year driven by a broad-based focus on Network Modernization," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. "Sales in the quarter were lower than expected due to timing of two key Federal and Enterprise deals which we are already fulfilling and are included in our second quarter. Bookings were once again very solid, and backlog is up 35% from the same point last year giving us improved visibility and confidence in the year."
John Townsend, Chief Financial Officer, added, "We expect gross margins to return to normal levels as product and regional mix improve in the second quarter and the rest of the year. I am particularly pleased with the disciplined approach to cost and cash management that we demonstrated in the first quarter."
Three months ended | |||||
March 31, | |||||
In millions, except per share amounts | 2025 | 2024 | |||
GAAP Revenue | $ 181 | $ 180 | |||
GAAP Net income (loss) | $ (26) | $ (30) | |||
Non-GAAP Net income (loss) | $ (5) | $ (1) | |||
Non-GAAP Adjusted EBITDA | $ 6 | $ 12 | |||
GAAP diluted earnings (loss) per share | $ (0.15) | $ (0.18) | |||
Non-GAAP diluted earnings (loss) per share | $ (0.03) | $ (0.01) | |||
Weighted average shares outstanding basic | 176 | 172 | |||
Weighted average shares outstanding diluted | 180 | 175 | |||
1 Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules. |
Business Highlights:
- Ribbon Delivers Open, Programmable Network Upgrade to EENet of HTM
- Estonian Education and Research Network of the Ministry of Education and Research
- Ribbon Expands Portfolio of Innovative, Cost-Efficient, High-Density Routers
- Converge Leverages Ribbon's AI-Enabled Data Transmission Technology, supports Starlink Low Latency Satellite Solutions
- Ribbon Showcases AI-Enabled Optical Innovation at OFC
- NPT 2714 Router and Apollo ADM 400/800 Optical Transport recognized by Lightwave
- Moratelindo Selects Ribbon for 20T capacity, Automated Management for Jakarta-Singapore Link
Business Outlook2
For the second quarter of 2025, the Company projects revenue of $210 million to $220 million. Non-GAAP gross margin is projected in a range of 53% to 53.5%. Adjusted EBITDA is projected in a range of $28 million to $32 million.
Full Year 2025 projections remain unchanged. The Company's outlook is based on current indications for its business, which are subject to change.
2 GAAP earnings guidance is not provided. Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules. |
Upcoming Conference Schedule
- May 13, 2025: 20th Annual Needham Technology, Media, & Consumer 1x1 Conference
- May 21-22, 2025: B. Riley Securities 25th Annual Institutional Investor Conference
Conference Call and Webcast Information
Ribbon Communications will host a conference call to discuss the Company's financial results at 4:30 p.m. ET on Tuesday, April 29, 2025.
Dial-in Information:
US/Canada: 877-407-2991
International: 201-389-0925
Instant Telephone Access: Call me™
A live (listen-only) webcast and replay will be available on the Company's Investor Relations website at investors.ribboncommunications.com.
Investor Contact
+1 (978) 614-8050
ir@rbbn.com
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