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Calix (CALX) Q4 Earnings Beat Estimates, Revenues Up Y/Y
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Calix’s (CALX - Free Report) fourth-quarter 2023 adjusted earnings of 43 cents per share beat the Zacks Consensus Estimate by 16.22%. The figure increased 26.5% year over year.
Net sales increased 8.3% year over year to $264.7 million but missed the consensus mark by 0.02%.
Calix’s fourth-quarter results benefited from a strong portfolio of cloud and managed services.
The top line benefited from growth in the cloud and managed services for Broadband Service Providers (BSPs). Calix added 17 new BSPs in the quarter, bringing the total number of BSPs to 56 for the year. Moreover, 20 additional customers began deploying one of Calix’s managed services.
Revenue EDGE revenues increased 23% year over year. Intelligent Access EDGE revenues rose 20% year over year.
CALX added nine new Revenue EDGE and/or Intelligent Access EDGE customer deployments in the fourth quarter of 2023. It added seven new Calix Cloud deployments, which include Engagement Cloud (formerly Marketing Cloud), Service Cloud (formerly Support Cloud) and/or Operations Cloud.
Geographically, the United States accounted for 94% of revenues, which increased 12% year over year. International contributed 6% of revenues, which declined 31% year over year.
Small and large customers accounted for 71% and 11% of revenues, respectively.
Non-GAAP gross margin was 54.1%, significantly up from 51.6% reported in the year-ago quarter.
Sales and marketing expenses increased 10.7% year over year to $52.7 million. As a percentage of total revenues, the figure expanded 40 bps on a year-over-year basis to 19.9%.
Research and development expenses increased 10% year over year to $38.7 million. As a percentage of total revenues, the figure expanded 20 basis points (bps) on a year-over-year basis to 14.6%.
General and administrative expenses increased 13.2% year over year to $18.6 million. As a percentage of total revenues, the figure expanded 30 bps on a year-over-year basis to 7%.
Balance Sheet and Cash Flow
As of Dec 31, 2023, Calix had cash and cash equivalents worth $63.41 million, which declined from $135.67 million as of Sep 30, 2023.
Cash flow from operations was $14.92 million against the previous quarter’s outflow of $15.75 million.
Free cash flow was $10.95 million in the reported quarter.
Guidance
Calix expects first-quarter 2024 earnings per share between 17 cents and 23 cents. Revenues are anticipated between $225 million and $231 million.
The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $267.9 million, suggesting a 7.16% increase year over year. The consensus estimate for earnings is pegged at 38 cents per share, unchanged over the past 30 days.
Zacks Rank & Stocks to Consider
Currently, Calix carries a Zacks Rank #3 (Hold).
Shares of the company have declined 15.7% in the past 12 months against the Zacks Computer & Technology sector’s growth of 46%.
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Calix (CALX) Q4 Earnings Beat Estimates, Revenues Up Y/Y
Calix’s (CALX - Free Report) fourth-quarter 2023 adjusted earnings of 43 cents per share beat the Zacks Consensus Estimate by 16.22%. The figure increased 26.5% year over year.
Net sales increased 8.3% year over year to $264.7 million but missed the consensus mark by 0.02%.
Calix’s fourth-quarter results benefited from a strong portfolio of cloud and managed services.
The top line benefited from growth in the cloud and managed services for Broadband Service Providers (BSPs). Calix added 17 new BSPs in the quarter, bringing the total number of BSPs to 56 for the year. Moreover, 20 additional customers began deploying one of Calix’s managed services.
Revenue EDGE revenues increased 23% year over year. Intelligent Access EDGE revenues rose 20% year over year.
CALX added nine new Revenue EDGE and/or Intelligent Access EDGE customer deployments in the fourth quarter of 2023. It added seven new Calix Cloud deployments, which include Engagement Cloud (formerly Marketing Cloud), Service Cloud (formerly Support Cloud) and/or Operations Cloud.
Geographically, the United States accounted for 94% of revenues, which increased 12% year over year. International contributed 6% of revenues, which declined 31% year over year.
Small and large customers accounted for 71% and 11% of revenues, respectively.
Calix, Inc Price, Consensus and EPS Surprise
Calix, Inc price-consensus-eps-surprise-chart | Calix, Inc Quote
Quarterly Details
Non-GAAP gross margin was 54.1%, significantly up from 51.6% reported in the year-ago quarter.
Sales and marketing expenses increased 10.7% year over year to $52.7 million. As a percentage of total revenues, the figure expanded 40 bps on a year-over-year basis to 19.9%.
Research and development expenses increased 10% year over year to $38.7 million. As a percentage of total revenues, the figure expanded 20 basis points (bps) on a year-over-year basis to 14.6%.
General and administrative expenses increased 13.2% year over year to $18.6 million. As a percentage of total revenues, the figure expanded 30 bps on a year-over-year basis to 7%.
Balance Sheet and Cash Flow
As of Dec 31, 2023, Calix had cash and cash equivalents worth $63.41 million, which declined from $135.67 million as of Sep 30, 2023.
Cash flow from operations was $14.92 million against the previous quarter’s outflow of $15.75 million.
Free cash flow was $10.95 million in the reported quarter.
Guidance
Calix expects first-quarter 2024 earnings per share between 17 cents and 23 cents. Revenues are anticipated between $225 million and $231 million.
The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $267.9 million, suggesting a 7.16% increase year over year. The consensus estimate for earnings is pegged at 38 cents per share, unchanged over the past 30 days.
Zacks Rank & Stocks to Consider
Currently, Calix carries a Zacks Rank #3 (Hold).
Shares of the company have declined 15.7% in the past 12 months against the Zacks Computer & Technology sector’s growth of 46%.
Pinterest (PINS - Free Report) , AvidXchange (AVDX - Free Report) and Twilio (TWLO - Free Report) are some better-ranked stocks that investors can consider in the broader sector. Pinterest and AvidXchange sport a Zacks Rank #1 (Strong Buy) each, while Twilio carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Pinterest have soared 49% in the past year. PINS is set to report its fourth-quarter 2023 results on Feb 8.
Shares of AvidXchange have gained 2.9% in the trailing 12 months. AVDX is set to report its fourth-quarter 2023 results on Feb 28.
Shares of Twilio have jumped 24.6% in the past 12 months. TWLO is set to report its fourth-quarter 2023 results on Feb 14.