Calix, Inc. (NYSE: CALX) shares are trading 9.03% up at $40.20 as of the last check during today’s pre-market session. The increase comes after the release of its fourth-quarter earnings report, which showed continued revenue growth and operational efficiency.
Strong Fourth-Quarter Performance
Calix reported revenue of $206.1 million, up 2.6% from the previous quarter, marking the second consecutive quarter of sequential revenue growth, highlighting the company’s strong performance in its managed services, cloud, and appliance-based platform model.
Calix also continued its run of double-digit free cash flow for the seventh consecutive quarter, extending its run of positive free cash flow to 18 consecutive quarters, further solidifying its strong financial position. Record Gross Margin and Growing Market Presence
The company achieved record gross margins once again, bolstered by the success of its broadband experience provider (BEP) customers. These clients have continued to expand their subscriber bases through Calix’s platform, cloud, and managed services, offering distinctive broadband experiences.
Consequently, Calix reported a 34% year-over-year and 10% quarter-over-quarter increase in remaining performance obligations (RPOs), climbing to $325.8 million. Calix also welcomed 18 new broadband service providers during the quarter embarking on their subscriber experience journey.
Additionally, CALX saw a rise in service adoption, adding 21 new platform deployments, 15 new cloud deployments, and 32 new managed service implementations. This expansion highlights the company’s ability to provide sustainable, profitable growth opportunities for broadband providers transitioning into experience-driven service models.
Capitalizing on Industry Disruption
Calix remains in the early stages of a transformative shift within the broadband industry. Its BEP customers continue to thrive amid market disruptions, leveraging Calix’s business model to differentiate their offerings and attract consumers, businesses, and municipal clients.
As legacy network operators grapple with increasing commoditization, margin compression, and slowing growth, Calix aims to accelerate its expansion by converting more operators into broadband experience providers.
Stock Performance and Industry Standing
Together with the positive earnings report, CALX currently holds an ST score of 53, indicating a bearish stance within the Software-Application industry. Investors seeking stocks with stronger short-term performance can explore peer companies with higher ST scores with Bullish performance using our screener link.
