Ribbon Communications Inc. Reports Strong Third Quarter 2024 Financial Results

On October 23, 2024, Ribbon Communications Inc. announced the release of its financial information for the quarter ended September 30, 2024. The company’s press release highlighted robust profitability exceeding expectations, with a notable 11% year-over-year growth and a 16% quarter-over-quarter increase in Cloud & Edge revenue.

Ribbon Communications, a global provider of real-time communications technology and IP optical networking solutions to service providers, enterprises, and critical infrastructure operators, reported total revenue of $210 million for the third quarter of 2024. This marked an increase from $203 million in the third quarter of 2023 and $193 million in the second quarter of 2024. The GAAP loss from operations was $1 million, while Non-GAAP Adjusted EBITDA improved to $30 million, representing 14% of sales for the third quarter of 2024. The company reported strong GAAP and Non-GAAP gross margins of 52% and 55%, respectively.

President and CEO of Ribbon Communications, Bruce McClelland, expressed satisfaction with the financial performance in the third quarter, highlighting sales growth led by the Cloud & Edge secure communications business. McClelland expressed optimism for continued momentum into the fourth quarter and 2025 due to ongoing programs with major carriers, new awards, and expansion in the U.S. rural broadband segment. The company’s guidance for the fourth quarter projects an 8% year-over-year sales growth at the midpoint.

Looking ahead, Ribbon Communications anticipates sequential growth in both businesses for the fourth quarter of 2024, with revenue expected in the range of $235 million to $255 million. The company projects a Non-GAAP gross margin between 55.5% to 56% and an Adjusted EBITDA in the range of $46 million to $52 million for the quarter.

Ribbon Communications also appointed John Townsend as Chief Financial Officer, effective November 1, 2024. Townsend, with telecom experience at Verizon and Vodafone, expressed enthusiasm about his role in contributing to the growth and value generation of Ribbon Communications.

Investors and stakeholders can find additional financial details and reconciliations of non-GAAP measures in the company’s filings and schedules accompanying its financial reports. The company encourages careful consideration of these financial metrics to assess its core performance accurately.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Ribbon Communications’s 8K filing here.

About Ribbon Communications

Ribbon Communications Inc provides communications technology in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It operates through two segments, Cloud and Edge, and IP Optical Networks. The Cloud and Edge segment provides software and hardware products, solutions, and services for voice over internet protocol communications, voice over long-term evolution, and voice over 5G communications, and unified communications and collaboration.