CALX - Earnings call transcript Q4 2020

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Operator

Greetings, and welcome to the Calix Fourth Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded. It is now my pleasure to introduce Tom Dinges, Director of Investor Relations. you. Thank

begin. may You

Tom Dinges

Cory and quarter everyone. on XXXX CEO, Financial we operator, Operating and joining Michael Officer, the you our have Weening. Officer, Chief Russo; fourth earnings Carl and good you, President Thank Chief morning, for call, Sindelar; Thank call. Today

will released section This filing reminder, as as yesterday, we on close made of stockholders website. to be the of the a letter audio call of in the Relations the for well conference Calix Relations As Investor market, the Investor replay after our available an X-K website. Calix in section

letter to non-GAAP otherwise Carl? let Reconciliation financial reference GAAP measures. to call turn in which respective Calix trends forward-looking Before quarterly the that, brief which over we Unless statements and of performance, results GAAP our about strategy in over to assumes opening on call and actual you this forward-looking these statements. actual Also Factors include stockholders. speak operating that to contemplated our XXXX set non-GAAP their want me letter to fourth dates. may our is make quarter on will and and differ we future any I With and reports with both differ no we market filed and Corey cause by to stockholders measures and this from to those only discuss annual to remind for call, forth non-GAAP as stated I measures. statements, turn in remarks, forward-looking will call, Carl. the this that included to growth all Carl their could the obligation our in materially update statements, SEC. financial of are and refer outlook, call, we conference materially results

Carl Russo

quarter. achievements, many year Thanks, records in of Tom. fitting fourth with year record the new we closed it the only a is In that

to more from continue our as should to we often. see will we refrain them As calling expect too and set I ramp records out company, all-platform such,

achieved the have However, Calix a of our innovate in without enable in record of we platform our service types far the customer of platforms all XX% customer. revenue diversity all to fourth pursuit cloud and transform. quarter, a of base how is come we and sizes clear The indication and single software providers model.

for communities. utilize acquisition, in their real-time excite customers growth simplify businesses and resulting subscribers. revenue deliver Our data loyalty to experiences subscriber insights and their their The businesses more value and and creates that

resolute are they customers to belief we if ours. our us our that We in help build will value, build more enable

XXXX we vantage viewing was will XXXX an this unanticipated are unusual way. understanding year, in would of like an point. and how a XXXX we Cory While Cory? to believe different you give unusual be early I from

Cory Sindelar

Thanks, Carl.

XXXX Carl and As stated, an was unanticipated unusual year.

range model especially and at end comes its XX%. supply upper For continuing our a Calix, many growth of financial X% offerings. see another our target time, respects. was of And logistics. strong adopt very challenges, and without not with to for this to XXXX year At chain be strong we our the all-platform XXXX believe customers it revenue year, to our XXXX it will in when was we

past the reflected in Over course the results that you our of outperformed, outperformance several XXXX, quarters. see chain the team supply and over

visible supply chain and will line. environment to can over gross impact reported along be we the more the last quarters on for related key likelihood freight with air number logistical The a lead XXXX has outperform most several and components, this shipping we pronounced with to of continue of availability, margin that become level times the more to in However, challenging. shifts recent in the challenges container challenging

increased shipping informed future. will key gross and price in fees just one providers weigh by through on to are silicon And end of expect and expedite the we chain, expect silicon vendors significant from yesterday, more margin of increases see of we other We our logistic XXXX. constrained increases.Given the supply our the costs elevated price near

gross Our per these in basis to the XXXX. of costs, improvement will all for XXXX us a model for annum guidance target our margin costs. of higher of Due first XXX these reflects margin to quarter challenge be XXX higher gross points

target our Aside from no we comments these updates, further two have financial on model.

it Carl to for back remarks. concluding over his Let turn me

Carl Russo

Thanks, Cory.

been fully drive reach our to people While on our and point, and our culture. recent rewards forward. In just started, we diversity, a continue our months, journey to Calix to we our potential, for talent has have culture grow To leadership. our realize us getting continue and will received this our we must are nurture

Tom, Weening the our of XXX will While as Chief talent, General we execute over am I happy Michael and been potential. are has to Chief I Suzanne to and Operating counsel, industry's announce Cory well continue our Executive promoted Officer, Officer. to Teamed with and positioned best that on President

for and we. that, to let some our us We rise mission. and XXXX, foundation Carol? are the call to every day, we our customers open simplify, the With has excite financial grow knowledge questions. we so realize in as for committed key challenges have Cory that resolute While outlined shall the our vision,

Operator

you. Thank

conducting Notter session. question. from be come Our Instructions] Please now with [Operator Jefferies. questions will with a your first of We line proceed the question-and-answer George

George Notter

the It's results, strength guess the on ARDOF. guidance, the about I the question was to business. my of see. great Congratulations

on operators views timing your re-awarded mind long-form FCC process a any what winners the being application versus to And are I'm lot satellite there's like? dollars curious looks likelihood Looking back, completed, in see the obviously, wondering ARDOF. fiber with versus that prem list there's go the winners, for process? then can reverse the course. And of just changes if the mix auction thoughts your through. to we that these of a of are any on of list of fixed by through wireless your going then of I'm on just

So thanks a lot.

Carl Russo

quite just list subject, of and That's questions George, the one morning. good on

deployed that being that talked which are about So the $X the awarded. start is let's as against was with first the technologies billion piece,

you tied little of the do under A the it half builders. some the about fiber -- XX% to is then wireless, is of went it of the remaining portion X% roughly to form math, so tied If and to remaining, larger fixed satellite. of

speaks So might broadband, dense how any about mix upon of the do that I that deployments how we are, well rural Well, to mix? sparks apply. those feel how or depending technologies locations think of one very

two. Number one. number that's So

more so very clearly, out billion know, was available, level, Just than $XX at some you was as a the high awarded aggressive there bidding. $X very billion of

so, to be there's remaining those. that And they no there's a yet as are funds to lot deploy will announcement how and of still let

So, $X the focus was. let's that billion on

are due As submissions defend week. have details you long-form today? know, weeks long The of couple the out submissions, are solution end actually, the you your on responses. the then this of and what's to long-form a So form,

know be we I nothing obviously, guidance. in see a we and lot July, event. what But go August of now with short, a would less who to feel will In congruent comfortable on my ultimately, quite of There's we a think, But XXXX along, the feel been we good. do there's let's a about are is, them, good these of that, From passing feel in reviews. question, we have to We coming how think, and timing that positioned, changed we well folks, before. is which steps interesting I of those so passes your have well. message chance it. which to back a is was overall and this of be, There standpoint, we sort this said event. through, go number are still our the And a year. on we've of that all that's believe, believe some muster And through this XXXX very funding starts muster

let So, answers and if that questions. there of stop most me your see

George Notter

question Yes, good just guess environment, that's other ask to I we wanted relative pandemic. very had to market the the a obviously, I great, the perspective.

additions I'm as coming business? we wondering, demand-like sub look customers? for What's and and if You of the like had environment surge look through you demand sub seeing your around driving at subscriber your the in your and customers Are those additions? still this waning big any Thanks. you are their additions, in that.

Carl Russo

pretty Yes. My We've as direct we model, answer said to to consistently, get we're this improving. all platform your question be would started. its getting just

as is you model, Ours land-and-expand a know.

XXXX versus how so And being And an how comfortable now and this obviously, we of uplift. was of was our much part grappling of pull-forward model much a significantly of it with an with were this uplift strategy? gotten what in we've was

actually but meaning at not that range, where You days getting is XX% our closer heard ago, say XX growth. end now, to towards his Cory X% we're of we in to comments which the upper were X%, comfortable going XX%

we the to any more much guess my you I comfortable don't go-forward color our would want So overall be that are that? demand if to with Cory, add know strategy. I and answer

Cory Sindelar

No.

I think you've nailed it.

Carl Russo

that question? George, your does to answer

George Notter

does. It

Operator

comes next with question. Paul from Cowen. of line the question your [Operator with Instructions] proceed Our Silverstein Please

Paul Silverstein

you in just go in that XXXX to to down the not On gross or go Are did margin up? XX.X% comment, XXXX. expecting you

Carl Russo

repeat to some make Cory I'm to what ask Cory going comments. and I'm said, to going

be for words a think $XXX we're Cory going was would want it, is I detail, other add. million might My to to the admonishments the be challenge. of fight. But it's $XXX and maybe what going some for you to but that million Cory, tone up to further overall said a there's be,

Cory Sindelar

in we several the expanding given year, And it's a Yes, years, be XXX, we XXX increase saying, points. sure. basis mean at margins we're throughout to Yes, supply we've fight I year at going and a long. but last challenges the Paul, so will the actually been the all much constraints, margins rate. reduced think

first much freight doesn't up. go environment it's seen up are The been We've whether price the to this boats, it component of pushing the airs, And most costs a we're The weeks rates in get going Just than are much, recently, year, more components. increases our times out. board, matter. it's XXXX. starting across just lead three on difficult

to year. going So it's challenging be a

do going through basis definitely we're and anticipating years, you growth couple best so, points. of consistent over to the last XXX real be of to get it slow, But be kind it's to the to going that. we've a work will should challenge not seeing And XXX, our had

Paul Silverstein

expecting much for addressed? gap be XXX improvement, point though huge a even there's XXX you've clear, because would improvement, I'm get stretch, I still given in sense was not a between to clear, just XXX? XXs to basis improvement, of be but to trying you're to be you're anyone XXX and which something be no It's that how the challenges a basis XXX don't XXX going to to expecting, to basis just the drive think saying points points? Cory, to

Cory Sindelar

reiterate we said, that just be can grow XXX, get We're and between we I'll Paul, it what think Yes. XXX fight challenge. going is to albeit there. we will still a to

Carl Russo

Yes.

add we're me our hit now, to out figure let to trying to how So Right model. that.

I fight think from That XXX highly Cory a I basis these got and but headwinds. standpoint up our that's basically the software points valuable is moving opportunity it work this. it, I'll challenge. not to But Thank business. think say XXX the correctly, from characterizing Paul. we're differentiated, We've go heavens that to us highly for is model, platform to a model. mix away do, gives for we're targeted

Paul Silverstein

Two I All other appreciate if that. may. quick questions, I right,

Carl Russo

yes. Yes,

Paul Silverstein

straight just you while just the like letter? mattered boat, entirely primarily the long revenue $XX-plus one It's drive from million from U.S. of since was or had a quarter that sounded it And to non CFO It your to city fiber Is business. been U.S. region. than time second the in non-U.S. a more continues commentary a

growth of saw reference how in give going what's color think I to the and about us on should non-U.S., But most And outside you think we looking what's U.S. I can going on any there? importantly? regions. multiple on forward, from

Carl Russo

-- growing. our -- would are why question, good would there's It's customers understand really your numbers unusual. You and peak But the Paul, I that nothing cause interest.

had America. But that know, that business aligned primary continuing remains But be our blunt on you focus no soft because to strategy, team to they're you should to North our from that. the international draw As there's to and outperform. we've trend

Paul Silverstein

but Carl, million you million I'm $XX last almost plus, quarter. from that up million be was XX not here, argumentative $XX did trying just non-U.S., to

I non-U.S., million That's the been x the of $XX you've doing in done ever. half haven't year. first think, You what X-plus

I'm on. saying norm. you doesn't so that's execution there's trying but change, it's percent say drive appreciate trying And not rough you to going execution, better but XXX-plus I what's understand no Again, to you I'm time, relative to -- give the better our normally previous

Carl Russo

Well, the of to appreciate I preamble your argumentative. be trying not

you is said anything some return seeing a clear, that's well else no us trend -- also that around the favor. world But I focused, the I to argumentative, well -- team the at me more base we're So by that than here fact overseas. level. hard let trend the there's The pandemic. being standpoint we're seeing think is denote se. the but don't I it's that that what me want you're thought trend is to that not because And trying let I'm business uplifting acquire the that we And driven is any expanding. the customer aligned. of be and from land I The seeing be there's is to think per

So no, don't think argumentative. I being you're

it's just I we area. a is overtly. that priority But right a sure I want drive not nothing are think a doing there's more upon that favorable -- your to It make the interest we backdrop. clear team executing is I'm to in -- are

Our foremost, in North focus, America. first is and

Paul Silverstein

All question quick one I right, for last may. if me,

-- On can't XX% XXX,XXX, of than customers, them even imagine given your of from any maybe that's those one is customers of I not X% the revenue, revenue that more less, that. the smaller no of one coming

XX% release, services preceding whatever, driving revenue in give at would it terms you those edge, new percent customers newest take terms of their additional or insight additional terms quarter. mostly the us revenue? grew what's are other. in move a function mostly can just Is whether of event And meaningfully a on Is so way growth a the where of that function almost subs? to product driving selling, they're macro the of what's customers They of in products XX-plus of in it that top those one your

Carl Russo

there's mean literally what's about I about it it. is exciting exciting all Yes. It's precisely nothing categories.

their customers customer it's base. literally joining customers, statistically is are distributed, us and new broadly of very existing its is customers subscribers. have platforms broad it's what now over So expanding the existing come a that to inside even It

comment It And no maybe Michael? bit then Cory, one over base. to choose I'll add a Cory, Michael so little might you do want add, broad of to on I a want there's literally highlight. But and turn maybe, this to well. would is it thing to that and as

Cory Sindelar

Yes.

to being base. part off. the it's strength important take there and note, of see expand to that land our think I strategy the across Paul, is driven We're starting

success And out they're so just to -- wanting more it's seeing to people back them. come we're and as building their and networks. add Seeing

Carl Russo

Michael?

Michael Weening

Cory and Carl well. it think I said

of We diverse have very a set customers.

broad also a We have very platform.

market If you over building for decade, reached a which right makes now we've incredibly and they're two in time. actually that pursuing look they at completeness, now them of have been attractive platforms the the -- the at a level

business the part out go their And so entire past back may their all a point fill customers their run and transformation from looking of or who from everything to business at organization in have entire a us to the only experience something business the their across they're needs considered view. are now actually of doing as business way to it their and marketing of access subscriber support our

again, make put as will when if we with you're success there means we So of expand our and build we and times bad, partner stated, the customer ability with Cory us, first, many to that be you organization, good and and and in scenario those them over demonstrate over customer they that successful. that have wide that to capabilities, as relationships the we where beachheads customers, in rapidly have the it into breadth those that

Carl Russo

comment believe, hear The is, from just Michael's started. yes. you -- should opportunity ahead we're of And hear to Thanks large finish, getting we as quite you And just can from us. Paul.

Operator

you. Thank

Company. has line your next of & proceed question. from Valera come Our the Rich question Needham with with Please

Rich Valera

I additions Let since think Calix this new a me customer customer -- nice on add my had quarter, strong it's had probably years to you team you new the been real that count and high. X.X a congratulations XX, customer Carl, very year.

any go-to-market if sort anything of maybe in the added? this more maybe as new attribute in would higher quarter-to-quarter, forward? in, this specific would wondering Or of that in to lumpiness there's going level that you call terms might is changes you Just it suggest customers normal

Carl Russo

But and quick you talking us I may wants In to is is how figure only following, has build to going I'll Michael existing add out relationships sort add code your when to Servicing virtual The to is of function pandemic, another. on Rich, went I outstanding try comment This the of some to new about. color one and new thing, Michael this some team job an well. the all customers as virtual maybe the would world. new make, to that, let think customers. to new in with my get interesting to view, be please. remember color But the breaking done trying how this we

Michael Weening

our joined we Calix virtual ago, culture a were research other some -- than our organization, years I functions. development and G&A maybe X.X Since

and part, For we anywhere X.X ago, work into things, and of sales calls us the prepared the our was conferences, that marketing forays the those technology form everybody beat. actually we spend organizations, virtual, those in into lot of video all of really adopted of all road, not a time from enter initial while and most to types miss were the on our pandemic a video years

X.X faces We years. like for have web on I each been other's looking cameras, said, at

other we customers. each next our as to engaged was in a but step we which our was that just strong, also way, to different the And had them with digital to extended serve very marketing, this we way with so something went and customers

customers to weren't used who it. we so lots And of had

and We that. Microsoft be like to time of scenarios. a Zoom learn successful how meeting go those things to to types spending how and actually customers lot had they to and So ended up Teams on coaching use of in

where would they us, that way productivity see try through for this just in a so others hard it's And as transition. to work significant dip their

It wasn't For us, were. was hard a it who transition. we

a that competitive into turned benefit. And so

And So quarter-to-quarter new with regards that's with lot on a to engaging how there's we'll a see basis, we're -- customers. other of than many add quarterly we'll

Rich Valera

quarter, there'll like you I necessarily Cory, year, for but follow-up perspective. this you're for it helpful. not know the seems and guidance the a guiding then appreciate That's that still first And there quarter, on I beyond pushed was is the seasonal the changing benefit first going that be from effectively to some of quarter pretty revenue unusual dynamics out typical where the likely fourth pattern.

you thinking just artificial wondering going an kind that think QX? from where it be? So we kind about in constraint should is on QX should how Or of given seasonally you're still boost boost of normally quarterly it QX QX? the have the if be that to about maybe think may that profile down would flow would of actually got sequentially sort being And maybe -- supply of we'd QX into above revenue that year,

Cory Sindelar

A We end terms up quarter. we it dynamic. in question, by great, nailed have clearly that of inventory going higher level. the of would that the think what's towards make first and on a We you've of I lot told great you Rich, exactly been a working

on terms balance fourth sheet. that material getting You're of some that quarter. million lot A starting was to boats. of the by Inventory grew see than more $XX our in in

quarter. up to backlog some make the in of shift and So we're first going that

that we remarks, high our setting we're think is guidance benefiting with expectation -- from the that opening that of at we're QX we into QX. range. end QX And the in pull our from out push obviously, provided So the

with dip we're got So there's the $XXX on guidance If kind that along call front to doing million. end, that of a that somewhere line. million be somewhere the means under $XXX

think QX XX We yes, XX challenging. so go to goes point, time a And just out down. QX silicon had at then weeks lead our And weeks. this complex I extremely looks for from

about some to of going terms challenges quarter us that. so we're in for So concerned work and looking fourth in That's out -- that's we're going on the it. supply. present go not there, We're to

the So of be it's demand terms much, going constrained supply this of going same, the equation, than in more be side. to supply-constrained to much supply year, we're we're more the on

Carl Russo

Cory as on literally Well, you What vendors. XX-week with supply want next said the we're to one means lead today, point. We're which just him we sit on some just what QX year. our I was planning say here time, of done year amplify of heard for

So of this unusual is going last to an year, the exact be opposite year.

Operator

Thank you.

from Please come with the Christian Our your with next proceed question Schwab question. of is line Craig-Hallum.

Christian Schwab

Great, one just I have quick guys. question.

it at small and continue land elaborate customer upper from for of recovery by you further with of size. revenue you just customer continuation end base? guys some type a size? look and plan As grow Or your just revenue 'XX, Is of to expand your by large your that are anticipating customer

Carl Russo

me let I'll a Christian, So -- answer. you give quick just

You that we QX. reason was know in of their had part from that have on And a any didn't CapEx approach QX customers. XX% down largest turn customer our

without We go me, entire other a Cory entire as And poor and CenturyLink but expect XXXX year was for we customer customer. that were in the when this day we an year. be the to XX% chatting, recover actually XX% may honest, to actually

grow but XX% I will think to any So customer small help? think in large, going medium, Does and of going that where grow and a and we one are in I up we'll we forward. around be know that continue growing we're to them don't

Christian Schwab

helpful. extremely That's

Operator

proceed Savageaux Our with next your Instructions] question of come from is question. [Operator Please Northland the of Capital. Tim line

Tim Savageaux

maybe in you've Congratulations that aggregate, of A providing gross of on the the know quantify at impact if you at kind here, coming of you that increase the terms you some wonder as price the And look questions margin issues aggregating -- revenue, you several different factors to given on estimated headwind It point I give of of whether estimate faced. us an kind but those QX of we a swing margins, focus discussion. and the headwinds. down I this I kind seasonality on Cory, results. the like can in magnitude can want first couple there. all seem were QX wonder, of in basis I mentioned of apples-to-apples, gross don't from doesn't if take you could might

Cory Sindelar

Thanks, for question. the Tim. Thanks

the to. probably could, but answer direct So going is I'm I not

in have kind those letter, size indicated have arranged the we We of significance. kind of in of

of that and benchmark of use those in terms that as take kind a impacts. can You

mix So being and related the and and then first expedites by stuff increased other to followed the costs outcomes. shipping

our So you terms look some at can that of impact take for in of in a size letter regard. guidance

Tim Savageaux

well, imagine the would quarter kind to of you that And the as XX% a And if was, extent guess, could the I to be year, driving it a you margins to higher Okay. dynamics is that assume on for as around that same level small I your this stabilize customer are the margin factor gross expect to of the of 'XX? mix one contribution you my be. gets pricing dynamic probably change headwind? have is Do It sort $XXX expect would in comments customer another where, new high sounds Do million and bit customer you probably think one would for Carl's what about extend questions platforms end strength theory, -- markedly adoption of a I mix customers in stronger. better like and gross smaller in no. you what to potential be expect normalize revenue of you'd this of QX year?

Carl Russo

the has you've this limit before, XXX%. I question point for obviously has distribution, a that high and as set continuing seen I that is land really But be think to ones. said, the you've and value. we get healthy We have set asked this I a normalization there's of large when think medium the gets ever at a the expand there. number growing set don't by again, driven of been product some customers,

our what's for in customers' the of is sure, mix matters, drive the but it platforms. so, going future to the of mix And

as we thankful with this, think to platforms be part box And But the will what hearing be X.X for I the yet. these company. long. one is the no deal there's of be if what's say a cover don't margin so out silicon of where us we the helps very we space. picture from margin drive us obviously, ways I'm continues This towards is to picture have of price say headwinds. product is, kinds sorted Calix not the fight a mix vendors. of to you're going to final that And well Because aware going on are year I these then everybody increases and in is,

Tim Savageaux

And a cash kind I you've from balance for extraordinary me, a level. price final sheet's strong, question mean, a share year. had perspective, perspective, obviously, of currency. cap very pretty From as market higher your and generation obviously is

currencies to those that as mind. your strategic be at have all given M&A thoughts us the disposal. warranted, factors, wonder aggressive here Given you update if come to the you in can you approach on sit do I early 'XX might whether a more

Carl Russo

occur. strategic career, I as be. to go can start my happens, things. need And thinking, In want this I when to we hallucinations as be people clear buy

positioned culture. that at from right away say, that the right me acquisition. cost we to disruptions, than right the extremely two time but the heard is one you've have platforms and offerings. is The The there's of process perfectly As in taking any are believe not opportunity right an we attention run the us we right front nothing high, of an better and do to attention

been, executing around of key built we make So that focused that's has excellence. promotion a at on Michael continue this been Michael's growth And part time our to forward. a team core perfectly that want we frankly, and are the business. sure going I with And blunt, And is be execution to that. absolutely of

simply on very executing are we focused the So, on model.

asking, it clear. so for make So could thanks that Tim, I

Tim Savageaux

again. Congrats pleasure. My

Carl Russo

Thanks, Tim.

Operator

Thank you.

Our is with line your Please Cowen. comes Silverstein next the proceed of Paul question. with question from

Paul Silverstein

quantify off, be much able to to how of supply -- the you because realize First revenue how going not you're you situation? revenue can much think logistics

Carl Russo

No.

Paul Silverstein

can't you share. No, want quantify? Or you to don't no,

Carl Russo

It would the latter. be

Paul Silverstein

be you're will don't that to able going revenue that you -- I you amount -- to not about talking a think of Can you meaningful assume ship? you're

Carl Russo

you've believe Yes. is almost I continue the drive unfortunately. us, last not three for to fall, the from thing the a two, We challenge. look, same four quarters is qualification can Supply demand. mean, heard we

of not level And it's sort so XXXX. times, said lead sort being look that's XX-week some is level your set. supply constraint supply there's at at as because if you a thing have factored some what we out into Cory of of hard And

So to can't I what is out. amount that us far be forecast ask would demand

think could be the could you If yes. you're asking, a more you more I now supply? would to right get if do answer that

Paul Silverstein

right. All

once a albeit state Secondly, services changing from we of has services, basis your complexion four increase quarter here. our on to lag, products revenue margins Where questions been margin One, time lower product they'll and been to in track revenue arrive like significant a value. higher I services going and lower should you do perspective a Two to? value, up think have sea where they growth increase, in eight services given the to steady at expect from call the can normally with get recognize thereabout when?

Carl Russo

Yes.

now think much. overall they'll at first, too actuality, the the will and they're march programmatically, of notice So me place will where answer let services don't total probably track Services a shift so revenue revenues. in I that percentage you'll I -- think revenue question.

the our you'll going tracked On programmatic the you there's ahead margin is, growth news question, of sort And been news actually asked of if you look glad that's notice actually on. because I'm the at margins it QX, there.

is Michael next in help is, You the to And hiring go in we customer the And our additional our actually to two down. business ramping. first to customers They'll go back down. year in success and to you customer actually of XXs, fell success achieve it QX, our stay comments, us and as to services we outcomes, growth. important investments to success heard margins in their go quarters but reason allude very QX going it we're customer behind programmatic then expect his the they're and make to should will in expect

go much XXs, where success customers. higher than continue picture possibly the gross can But portion heavily paint proportionately be particularly and get Where weighted that margin the again. starting Does So, the they revenue, won't that corporate to to for to as going you? low in in a back our over effect. then we'll doesn't in if than we're a the In a lower have are because to XXs grow services XXs, long-term? the of average stay of that they invest they

Paul Silverstein

appreciate it. I

Operator

no call back are the over There time. further at hand questions for I to closing like comments. would any Tom to this

Tom Dinges

operator. you, Thank

Goodbye everyone on and about call the of information webcast on Calix, you Once for This posted and will thank now. our investor the and Relations in section Presentations again, on future the call. your interest page be this for concludes Additional for to Investor conference joining Events today. events of calix.com. thank us you

Calix (CALX) 28 Jan 212020 Q4 Earnings call transcript