Ribbon Communications reported its financial results for the third quarter of 2024, showing stronger-than-expected profitability. The company’s total revenue reached $210 million, up from $203 million in the same period last year and $193 million in the previous quarter. Cloud and Edge services stood out, with 11% year-over-year growth and 16% sequential growth. The GAAP loss from operations was $1 million, while the Non-GAAP Adjusted EBITDA rose to $30 million, representing 14% of sales. Gross margins came in at 52% GAAP and 55% Non-GAAP.
CEO Bruce McClelland emphasized the strong results, pointing to success in product sales and professional services, which drove profitability to the high end of the company’s forecast. He also highlighted growing momentum in voice modernization programs with Verizon and other carriers, as well as new contracts with U.S. Federal Defense agencies and expansion in rural broadband. Ribbon projects an 8% year-over-year sales increase for the fourth quarter, expecting continued growth in both service provider and enterprise segments.
• Q3 2024 revenue: $210 million (up from $203 million in Q3 2023)
• GAAP loss from operations: $1 million
• Non-GAAP Adjusted EBITDA: $30 million (14% of sales)
• Gross margins: 52% GAAP, 55% Non-GAAP
• Cloud & Edge revenue growth: 11% YoY, 16% QoQ
• Q4 2024 revenue guidance: $235-$255 million
McClelland stated, “Our financial performance exceeded expectations, driven by solid execution in Cloud & Edge services, and we expect this trend to continue into 2025.”
