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Calix (CALX) Solutions Aid BSPs With Impressive Performance

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Supporting broadband service providers (BSPs) with several revenue-generating services for more than two decades, Calix, Inc. (CALX - Free Report) recently announced that it has witnessed a significant improvement in subscriber adoption in less than a year. Thanks to the resiliency of Revenue EDGE Suites (EDGE Suites), the company’s subscriber base grew more than 800%.

The San Jose, CA-based communications service provider offers a range of solutions designed to help communications service providers (CSPs) bring new services to the market, drive revenue opportunities and leverage an ecosystem of partners, one of them being Revenue EDGE. The platform offers advanced analytics and insights that allow CSPs to deliver seamless, personalized experiences to subscribers.

Platforms such as Calix Support Cloud, Calix Marketing Cloud, and GigaSpire BLAST systems have also contributed to Calix’s success, with higher customer loyalty, increased margins, and differentiated brand. Revenue EDGE streamlines the launch of value-added services with reduced integration requirements and market activation support. Its services enable BSPs to enhance business profitability backed by new revenue streams.

Meanwhile, the GigaSpire BLAST systems deploy a powerful EDGE system that offers cutting-edge applications for the ultimate Wi-Fi experience and paves the path for revenue generation on the back of accretive broadband investments. It is an integral part of Calix’s Revenue EDGE solution and is equipped with Wi-Fi 6 technology that provides network security for an all-new smart home infrastructure. The unique product supports broadband businesses with minimized operational overheads to offer value-added applications and services.

Kansas-based fiber network provider SCTelcom achieved 95% adoption of ProtectIQ — Calix’s home network security. CVEC Fiber witnessed a 750% surge in subscriber base in just two months. Tennessee-based Cumberland Connect increased Net Promoter Score to +90 and boosted average revenue per user with new revenue streams in four months. Driven by such diligent operational execution, Calix is well positioned to address proliferating network requirements amid a challenging market scenario, thanks to its resilient business model.

Calix is focused on providing the platforms that enable service providers to create services at a DevOps pace and provide subscribers with an exceptional experience. In third-quarter 2021, the company added 38 new BSP customers from all segments of the market. CALX’s near-term focus is on catering to the needs of service provider customers. In the long term, it is focused on finding like-minded customers, regardless of their type, size, or location.

Also, Calix is committed to aligning investments to its strategy and maintaining a strong discipline over operating expenses along with a favorable product and customer mix. Calix’s team is focused on operational excellence and customer satisfaction. The transformation of Calix into a communications cloud and software platform business will manifest across four measurable metrics over the long term — increased predictability, disciplined operating expense investment, deliberate revenue growth, and gross margin expansion.

Calix currently has a Zacks Rank #3 (Hold). Its shares have gained 108.1% against the industry’s decline of 30.2% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Mimecast Limited is a better-ranked stock in the industry, carrying a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for the current-year earnings has been revised 1.5% upward over the past 60 days.

Mimecast delivered a trailing four-quarter earnings surprise of 21.8%, on average. The stock has gained 51.1% in the past year. MIME has a long-term earnings growth expectation of 35%.

Bill.com Holdings, Inc. (BILL - Free Report) is another solid pick for investors, carrying a Zacks Rank #2. The consensus estimate for the current year has narrowed from a loss of 81 cents per share to a loss of 79 cents over the past 60 days.

Bill.com delivered a trailing four-quarter earnings surprise of 31.5%, on average. The stock has increased 46.1% in the past year. BILL has a long-term earnings growth expectation of 17.3%.

Cloudflare, Inc. (NET - Free Report) also carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for the current year has narrowed from a loss of 7 cents per share to a loss of 5 cents over the past 60 days.

Cloudflare delivered a trailing four-quarter earnings surprise of 50%, on average. It has returned 31.4% in the past year. NET has a long-term earnings growth expectation of 25%.


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