Calix (CALX) 23 Apr 242024 Q1 Earnings call transcript

Company Profile

Participants

Jim Fanucchi	executive
Michael Weening	executive
Cory Sindelar	executive
Ryan Koontz	analyst
George Notter	analyst
Samik Chatterjee	analyst
Scott Searle	analyst
Michael Genovese	analyst
Timothy Savageaux	analyst
Christian Schwab	analyst

Call transcript

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Operator

Greetings, everyone, and welcome to the Calix First Quarter 2024 Earnings Conference Call. [Operator Instructions].

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jim Fanucchi, Vice President of Investor Relations. Sir, please go ahead.

Jim Fanucchi

good and Melissa, you, morning, everyone. Thank for you joining our call. earnings XXXX quarter first Thank call, President we Weening the on Today have Financial Cory and and Officer, Sindelar. Chief Michael CEO,

issued the call on a Calix section in X-K, yesterday, webcast market Relations after was As letter our of will website. Form of our for release, the also replay a furnished closed, the posted along reminder, in Calix be section was available which a Investor stockholder the conference and with Today's news Relations Investor website.

differ non-GAAP their this statements, both the all financial ahead. to reports update to it and remarks, on to over the quarter set that, actual and forward-looking first actual dates. turn Before in and cause materially forward-looking this no please remind those and as measures non-GAAP that want stockholders. statements. Calix the financial which quarterly its referenced and statements are first contemplated otherwise XXXX results information quarter in call, forward-looking Michael, GAAP the operating letter conference outlook, stockholders go of call I will financial results on including in statements, materially call turn respective by of Michael to included performance, forth stated, call Factors to over Michael. for the differ speak everyone reconciliation is obligation from pleasure non-GAAP. growth will and company these to his letter SEC. market this opening any about my is With in to the annual could be Also GAAP I call, and strategy XXXX we all we only discuss to the refer assumes will make trends to filed to future with may will A measures. Unless

Michael Weening

Thank you, Jim.

our the strategy. Our execution of strength demonstrated and results in the continued first quarter

and our enabling against Managed day. Calix. services delivers competitors Our every success Cloud Broadband turn, are Their their stakeholders succeed customers platform, and in their to to to value

model BSP's Our Managed as margins business services of unique Calix Broadband Cloud delivered the gross and continued unabated. platform, record deployment

business appliance is challenged into their not which same This we reevaluating larger plans. CapEx the market way with forecast. continued customers the trend second our However, the remains quarter, in did

Now we understand same that the adjusted highlighted expectations time, the At we customer ongoing however, it this our of larger dynamic, have strength BSP accordingly. customers. smaller our

robust. Leading remains base, network revenue. decision quarter will indicators by with deploy subscribers this operations, forecast customer by lead BEAD, be of in that vendors their While set build to our in part the of our muted green that combined completing the us new builds from shoots bag in appliance growth existing is of filling around second and those as usual customers fiber, the networks new business winning infrastructure

Regarding partnership have Cloud via XX the report routinely Managed undertaking received back success are government BEAD enables portal streamlined use with This 'XX, in to speed as as Broadband that will that funding that funding funded and secure Earlier BSPs to requirements. customers. any to Calix for a years. must something and public their for and government existing test. of XX% customers industry-leading us symbol part X,XXX apply This we as win a is our is we Working indicator funds them of early we've we have begin lead. and to to help done stimulus federally said, grant we customers on their they you delivering complicated month, believe and solutions. Recently, for BSP will funds, redy.net. This our of than connecting win adhere future our announced is funding speed who with this create platform, a made program, significant capital solution Ready.net with us leverage saw a more provider, Calix partnership tools consult revenue we

figure to that expect We grow. XX%

at when intend in existing the stimulus our stance per While month per up the to government in came past aggressive the accounts is our quarter to times maintain network all the XX lowest first providers. in recorded actively been the reduction demonstrated as consolidated were footprint at accounts critical and largest many market bit Verizon. We expense new soon Unlike this new delivers mile we've infrastructure from program startups, cost as to new landing be XX% in operating time. service here,

deal I'd are valuable disruption results Cloud chasm business for and selecting quarter. build history a our that financial from providers the engaging larger it and Larger commoditization. speeding review by smart this in largest the the is to With bids. of that, Calix up. importantly, like of provider Finally, help are QX the with indicators crossing Two disruption. weeks include avoiding to first we the over to Both conversations service to them signing in most wave Cory more a our service in are turn examples

Cory Sindelar

you, Michael. Thank

and within Connections saw with drove with to in their operating non-GAAP first service the from we non-GAAP gross represented $X.X occurs beginning we We million, the January. margin Against $XXX.X customers in provided Cloud quarter. year of million quarter of In and event, quarter, down guidance journey Managed of us In a XX $XXX.X fourth delivered crosswinds customers to the first the in The which is were quarter. expenses of the growth XXXX, platform the record XX.X%. our platform, prior revenue and adoption disciplined first industry, The time. Managed in each continued million, attributed the [Indiscernible] for our pulling range deliberate quarter quarter first the prevalent another platform execution. services our which was decrease

operating our to XXXX As of this footprint our is continue consistent expense grow to we we talked the about of XXXX a U.S. in investment. that investments our represents Broadband last opportunity relatively great for ahead plan us with investment to as believe keep level call, government

consecutive the cash remains were sheet investments double-digit of our This quarter of strong. sequential end first Our flow. increase the million. and cash $XX $XXX quarter, free debt-free fourth of nearly representing a million, was At balance

to the first Turning quarter.

chain Our normalize. purchase million. component turns million, $XXX another to deposits inventory X.X%, increased. to commitments from million X.X inventory by falling and with Inventory year-end our down from continued quarter our were $X We QX declined exited supply as last $XX

result Excluding capital than in component quarterly free profitability inventory, greater turns consistent with operating these and expect in continued our requirements, cash have been Furthermore, reductions inventory would flow. X. will working double-digit we combined

quarter, million. our we repurchased first the stock bringing repurchases our stock, common common the total During last over million $X to $XX of year

approximately million available place end the with Our at first quarter. of the repurchase in $XXX program remains

Now let's second revenue quarter. guidance discuss the our for

As several Michael crosswinds in has discussed, our industry. there currently are

for of mostly the result million. delay revenue quarter be of million quarter a due of a large and $XXX our continued purchasing outlook medium to from XXXX few second our forecasted As is between to decisions of The first decline at is in $XXX these factors, customers. the revenue and

to Michael, further, expansion, you is we In will risk. bit for few a growth. bottom limited from June with and industry's customer and cross summary, gross green the drive grow the in footprint the the to we revenue where to our resources unabated a the will a sheet, wins have government Broadband while our footprint revenue out our U.S. When smaller investments. in line Cloud set margin downside quarter return back top shoots combine revenue from significant point the there advance as balance affect believe we diminished and And in will invest Managed we our Services operations will financial Looking believe to the base with strongest continue to our expansion. near customers term, have of platform, grow you.

Michael Weening

Thank you, Cory.

satisfaction with a have thereby the Cloud an filling new business. our subscribers, win to network be clear platform, early understanding operators, surprise investors disruption majority. is chasm are is networks those deploying supercharged connections faces the have land funds no BSP more customers results. with X meet The I opportunity cash ever are with million customers footprint who fiber new next than portfolio new are With BSP legacy their interested flow which an once-in-a-generation customers to and team of our our expand how Calix are achieving As is by It Services platform to revenue, time, BEAT XX customers 'XX. Managed expanding engaging the to At incredible they that we and critical larger margin, energized I years, enable This customer from crossing we early with shared, our entire network than X,XXX will begin in by to and in in their opportunity the adopters more the prospects our that services. managed forecasted same it that the remains Broadband winning constantly. and

XX While completed only I XX all we reiterate in BEAD XX of our X want X are closing, other that in have In has state the to confident states steps steps the outlook. to completed long-term begin funding. process,

We a strategy team our talented motivated have day. every executing and

We new have of network builds. this and advantage unique positions that to technology take serve wave us

maximize allows the to expense and as avoid the We our customers balance any steady Jim, and sheet for Therefore, keep intend let's operating us on win. we we hand this open have financial disciplined and investments strength that distractions. our questions. help call opportunity to a

Jim Fanucchi

Melissa, the please open call for at you, Michael. questions Thank this time.

Operator

Instructions]. [Operator

line the Needham question Company. of comes from with first Our Koontz Ryan &

Ryan Koontz

are there medium the a of we in high the looks customers about It at here segments the customer your trajectory from the large Xs early smaller segments do how level? unpacking about then think relatively stable hurting. bit. XQ? you going a forward and into second them but this Tier half And stage think like really your How should here Just those

Cory Sindelar

customer outlined point about decline of continuing of to it, fourth those the we to base. stuck are large and and their QX the from have level. green that quarter in really turned were first processes be focused million on in on our those we're deterioration that segments the quarter, revenue. customers. smaller see they a To shoots they clearly, put is in coming to XX them And but XX%. as ago, to out capital medium And a out didn't We QX get And forecasting letter, from not expect planning still quarter in we're continued $XX to we

more segments much not to really further those go. have So

out, grow. we this we able so to we're And bottomed, think got be here and to from on why confident point, QX that at has

Ryan Koontz

footprint that And might segments? actually should a it see a that as toward Should worse and Edge mix we a we be but I of Intelligent terms on for might Intelligent trajectory EDGE, X follow selling Edge. your and a your thought more product quick mix how here of could, Revenue I in Revenue the Access of edge, think if those than product Access please, little gain? interpret new

Michael Weening

that's Edge, gains but the filling of mix network Access Intelligent out a currently Well, new that the existing so customers, on builds also they our network have.

and segment so customers we would forward in XX real the we strength to rural see And that the Intelligent out, see in some fiber go Access smaller that to underpin continue successfully. going billed you you you definitely we said, strength. I start who get to see search. build are those to saw say -- start And as out why lines those you're that's the And to million networks as see Edge continued our

side, where new is they that's On to usual business as that Edge of the acquire used the Revenue business our part subscribers. what

grows ones going are we best existing worried differentiate about took I network, that last customers continue on. they're And I'm my generally in to my fact, And those in Calix's positioned markets that. have and and as and to quarter, XX so business saying, commoditization. "I to caps do need an fiber see therefore, where you're

Ryan Koontz

number networks, much in the Edge say Access that. to sell-in, from of than fill but that entirely footprint fair healthy more out is it's includes existing So new Intelligent component a edge down

Michael Weening

and decision-making the the instead X through, months to almost capital. to go X, they do invest as funding and existing and work beef have decision the that that's X I now network new in a I my powder do back after my And that's use that with out using funding dry of I the capital months, Or regards build?

take will future, swing a we the and you in So deploy side footprint. BEAD as they definitely begin up on the see to network those funds

Operator

next the of question Notter from with comes George line Our Jefferies.

George Notter

I to the question. ask wanted BEAD

BEAD Or to the handicap program flowing in think X out. BEAD delays. process? slip? year-end think the X to that controversial potential the by know really process Do and to you is said you little the the X program X in do months I the that potential bit months you Look, has are think a monies it's you the terms out? a of for Can I

Michael Weening

would been X to anticipate. be going And coming longer been We've people our And that than very lot with last it's then so would a does significantly be have it views earlier. over that it when the years, consistent others arrive, arrive. regards asserting to larger take to

So what's Is our XXXX, that some it? XXXX you'll see early we then and think trickles, it it year. we start from view as will on go XXXX. to the In is see that.

Cory Sindelar

from of through in good the terms see NTIA's made states challenge process. some progress could the You or approved that website volume getting on the they

you last include where That's they what seeing next XX expect too start see to the start that states approved. I'm states to get like quarter days, will If NTIA and right, this and I working XX% the that. getting slip you went those continuing by saw would on more until days encouraged launch more the funds. from government the can in But million. territories, continue approved, last XX average. the I $XX we'll happen volume what I'm to any you're

George Notter

timing is your at Or about year how just you're base? more now think that effect then that as seeing smaller looking customer as of is the And think how for into the goes BEAD, do talking effect a wage something layers talked about you're with talked your in strength going associated Or as were you associated a you with the We planners about something the that result on? BEAD. follow-up, prospectively that network and offline you about guys overhang it the business customers, in smaller wise? I right

Michael Weening

this going to first year, through We stated identified of an be in this we January that that is impact half.

in that we QX. And so saw in and that QX, see we

that of impact as profound existing some larger they're through a the customer decision-making are through customers going still our process. see they You base, this. working on With

the BEAD, apply on. in indecision a that you Therefore, of made for the and see customers not continues, and in a a them medium profound and them -- more there have but are So of portion decision are portion to pursuing continuing large. are that lesser it therefore, smaller the

Operator

of question Chatterjee line comes next JPMorgan. Our the with Samik from

Samik Chatterjee

But spend. as customers that were you out pausing call significant well XQ certain did in

evident well. as expanding a I'm when out wondering customers in the at that calling are that are just You of as year, becoming into to really in end the constrained of is as the trend? typically just is breadth breadth go you headwind the this it Or of terms a few. remaining release back that that you look the is pausing, a more

pause. called those? had hit signify quarter it X you to think out have I customers last I constrained that follow-up. And remaining Is a

Michael Weening

not great it to for we identify the QX and to how answer in second and that's Cory, quarter. a shift the QX you did anticipate question from continuing

Cory Sindelar

is their It continued X to customers in largely have that delays decision. capital have

XX year. in they the when in a of not And in did, what a be so it's that those you couple. more we focused QX. anticipated It's to QX half at It's about last at million look and $XX broadening. really And on were take current

we're largely bottom. not it's to in confident robust. no, why particular. customers out. still It's small spot very those in feel predominantly The broadening segment calling we that. We've So that's demonstrated X And winning remains the tied may doing. everything And network or in and with while out decision-making, continue have in builds their green some their that to with seen existing shoots We've they initial their subscribers. they pause expand

decline, look decline we same in you saw as And obviously we've also at If turnaround. last that way. inventory the funnel actually year, seen turns our

like out see funnel also to and from green expanding, you lead they're that Dotcom now they're fiber is indicators called shoots those see who expanding. and builders Our also starting

we'll second the why we feel And start bottom. So the half, calling comfortable expansion. seeing the then that's in

Samik Chatterjee

in But account that shareholder continue the just follow-up, for on in trends seeing acting is will Are more what know trends on you even in network things I my you more you and as those you've leads should are of terms grow builds, customers subscribers, new monetization be the highlighted of I interest the trends? one seeing for customers the overall. to interesting outlined And Cloud them. pausing in of assume, the subscriber relying letter of are saying some you focusing more your on they're you Because services But the platforms there in for QX, effect of me as you service on that Any think bills would get that? would platforms Cloud on the passed? I network meantime counterbalancing have the insights there. a on the which

Michael Weening

a a through And should we alternative comprehensive network. into not a that a small to you're we business a with same time over fiber never actually I at to expand who's the in the that building because this started be consider the us about strategy pause pour that brand to business week, to fact, not the had building in cup assets the actually for some are that exactly But different going with about the as alone and is choice coming X it's have of our the the that. out you're alternative. making like time, and last local used through done of to differentiates diversified years talking pandemic What medium. We has the you challenges And coffee, an actually you prospect step we like that smart following and you're And business talking charger. not stated. the last an industry, community go term consumer, did back realized at took the look we business conversation, then strategy. let through vision dumb very you're into a on is a us

do. to opportunity can in room business QX, we And to we've even of this this that type did up and have that, a QX come. demonstrate it, so breathing QX to a through consider not value for again, the they what in have stating ourselves to now massive that surge they and represents set now this that represents in their And where decade been scenario

so the And It time opportunity to have to that's about happening an those pause that's take the they big think why actually customers with right with that and an opportunity so partner we're now. creates and a shift in happening the enthusiastic market recognize there's to Calix.

Operator

comes of MKM. with question the ROTH line next from Scott Searle Our

Scott Searle

to quickly Mike, items. a maybe couple just of clarify

entirely down the to some and June in at are softening half second they driven? the XX%, similar the as in cause XX% another to the first recovery, are early that's you downward 'XX, assuming And to medium in I'm it from the front? spending well large Or quarter wanted sequential business the what look I into imply quarter? saw quarter March weakness the on all of when we second quarter the would of we talking say customers, to as sequential Looking and move as decline small the current you seeing opposed this business into that clarify awards. about you're the that BEAD year, small is initial the And

that, clarify follow-up. I a then and to had want Just

Michael Weening

at a through strong. stated decision-making we just we from us to I our the is And and end small differentiate stated, actually this crossing stated investor segment they anticipating markets. going letter, clearly that Cory that alternative in get think, who the from has the and where having continues and look and deployed to opportunity to to cost like business XX for medium moving we can that fully consider segment. as our different business others is which large as declined we're to second time they And significant model, to that as and the recognized have and the have a really in want the then an surge attribute the then they be process, in Al mind us as share what's when to So they're happening XX quarter revenue again us, innovative in already from CASM the in build then folks really and in where it

fill now looking operators network to are challenges network. that the the to So starting see and

small. yes, see it's No, we and do large. shortfall So in to the medium a attributed not

lead to half. see strength continuing invest in we fact, second and them grow, to the and that In will

Cory Sindelar

last yes, BEAD. question, about in revenue not beginning 'XX. about the you talking Scott, then around was awards, And asked And we're just but

Scott Searle

clarify this of just get customers multiple what amount in there obviously could, wondering now you're number a we think the where into And of or customers BEAD, understand terms requests Trickle that us if look peak like? 'XX, with BEAD engaging their I your in the contribution put if was And out could working beyond? I that dollar and Is with help in and facilitating would of funding some magnitude on from have process 'XXand in amount annual actually them. right of as terms could [indiscernible] you you terms

Michael Weening

and also those No, we've we've different are. only level, ago, provide of that The but and there X them is groups different we don't with that working with XXX that hundreds Tribal is That's well consults all where which had hundreds have at will their was and we've funds been there that's that directed at pill are tribes customers weeks the with, a a over helping engaged were be, the with. that understand who contemplating number that. funding, markets. government number of only it's we state I Summit not trial,

are we shareholder active letter. So in incredibly I that say we put as just would

programs and how have regards customers is, service government the That a to indicator in compliant also to in with very successful. how understand as long are, as simple last helping funded very the pursue speed partner over see what federally provider U.S. partnered with just opportunity I incremental XX XX% a test. testing. we part we customers and We for remarks, the value in us we've my it, it through great who the is, with our beyond is previous the a broadband good Currently, they Ready.net, us funding use earlier with them capabilities which we years, to do the over on term where stated the who how should that provide done it, where and as stay active with maths for of today see funding funding that is our customers be into make to pursues the of expanding that

Operator

question next Securities. line Michael Rosenblatt the from of Our comes with Genovese

Michael Genovese

and on of bear thesis I first just couple on just a your want get more to view check them. points

OFC, basically talking was the similar medium the customer about market a First going Ciena handing router Cisco PON PON with after at solution. with of all, to card technology a off

anything just wanted in all if is as is there's So if the market to share on X or check spoke Tier you market about? this going just customer valuation delays

Michael Weening

There footprint. is a competitive thing going on. We're taking

So on. going that's what's

And said, we footprint, transitions in the burn through being of it the elements. them won takes customers their acquisition time like that so previous to different XX our all inventory, actually make that that the QX, for

And regards people With that market, coming so other green on. been to. to our shoots the we've those referring into bringing are

Michael Genovese

the how but tier and end large, of the medium they are the do day. predict the don't if just the how and the having can saying, customer know that are and don't know day, small -- people at less and on the BEAD I large this, people been customer then correct, go towards medium, might about talking And to end they towards at customers but of I question base with there's the more small this is some BEAD, predicting

call people that don't so is or how from that. could know say where coming And I

XX% data that us up You're where going Like BEAD detail give can customers. confidence process? winners comes the who your there? you these points to all customers of with revenues confidence just are What's your working from? in your be And make that any small

Michael Weening

on BEAD as is small, to Well, if medium bad be that when BEAD going to that small large. to BEAD around to in BEAD, to funding. large to called the teams we trying that that actually as large really down go X clear, that's invested love make be and said segments to with just I've clear, Because be actually to They NTIA all an for successful. didn't go done live decision-making not the for nowhere small reliant investments them We With our government community, indicator to who's and are with customers. process. But going they NTIA do the to is medium going go swing is that But their buyingset their going the out small back to say though, then And customers. compete is rural there. underserved engaged that, service regards participate. market, then And is in because or they go they're through money We segment in the America. ensure win, do that are to going doesn't aggressively. Why? on focused aggressively that they have fact, acquire rural, it USA to because those they funding without actually should situations should be this, ones they've participate providers very continuing who the and and community-centric

says all support be good X agree. all. another, I therefore, we'll segment agree. X don't just going We to be going in It's participating to able don't And one anyone levels. them segments segments, at different have all it's that So who to or we relationships and be

Michael Genovese

towards just a 'XX? Or type do to XX% full be ramping 'XX in me, early back for you we half that this, maybe finally do don't first think growth X the quarter year a get and of until looking to XXXX, rate we'll on XXXX I to basis. of give get XX% there to in could outlook then you know X get it's or beyond as we for And think past year. an that But

annual thinking XXXX, Just growth starting the how in you about long-term are rate it?

Michael Weening

a I flow through the indecision thing We which for opening front remains do by different to phase to Managed do how that you continue cash got the to of customers you're do have indecision And and remarks, stated around back and take creates a Cloud that their grow, opportunity strong. once represents next to as just to is us I XXXX. for profit. they and did deep is this shareholders this will conversation be take evidenced them I which we as we margins fundamental want this that over an to our underpinnings stated, what's build an a cooperative consistently years X for your And footprint, that. to this And you're in get X understand. business, very we opportunity years, business future peculiar the fact It's best is platform opportunity as or what Services this we've if to higher-value period, can And the XX in stakeholders, them. will breath, then for opposed members, expect for that in first my and get the consider that if stated yield of which

Operator

next of Tim Capital Our Markets. with Northland comes the question from Savageaux line

Timothy Savageaux

hit that. to go of I commentary whether your efforts shoot and on questions. couple briefly, more that question any about gain you on really were I but back you and A see call. had another green I to on had And color the revisiting share Michael, discussed -- this last the want was

efforts And is customer to would medium shoots? gain activity throughout any signs to to You or base, Or really it you the positive X. or your conflate of large refer seem are green there small, those other share? that a

Michael Weening

pandemic, our as go Well, back to XX when as high were the lead months. you in times

history. pipeline over point X place doing in X through going back stabilized. Green half. And therefore, shoots now what's a footprint During And we've essence, also go deep to down business. Cloud quarter. us single we see in therefore, not that. we significant take was with over basically That's logically, shift. to would things of That's actually insight at that seeing give second years, talked the of by, And the QX, from but are us from the a which last time, closing we BSP we with you've through continue to, business. view, confidence was we're and a a gives also first affiliated company's us biggest deal about you selecting with And in affiliate customer QX, as quarters the where what X to pipeline because brand-new they that closed as us our larger to are the I And that same lead win. pipeline in actually in happen seen times a weeks gone significant growth, down the quarter, in orders, situation, time, into had the evidenced smart in their had -- At to a

And to for the go a largest actually points, those so strong represents which through selecting brand-new essence, deal significant is, second a their the customers pipeline Cloud in go half. us opportunity growing, the I and then closing larger confidence gives business market, and us. business a small in the us This after

Timothy Savageaux

back? growth And I into of Or along recovers half, to following it you revenue. to to business. on do appliance steady what's there's see that tick notable could been quarters questions, the up. that gross throughout the last margin in from margin that And that, blunt do maybe the gross which is a here of with with seen with reins increases coming continue perhaps year mix have imagine couple gross margins as the service a I greater the from hardware second continued couple and even guess, expect the sequential in expect it software you've you that side, is what impact even aspect of

Michael Weening

we As to to share as and subscribers. our business Cloud our throughout add customers Services new is said continuing Managed grow take continue platform, and

will so. do to you've seen that and persist continue so And

builds what margins. access, As has you'll new back, ultimately back which to in see network as shift higher more a gross come product

gross margins. won't in So you see decline a necessarily

at continue. mixes. the depending rate vary quarter-to-quarter see it on from The you'll think those which I will progression changes

second in it less products a lot with in swinging to expansion of back the for the quarter, second do it quarter. than And in what the has So side the first premises is was the the to quarter. example, margin

So inevitably, because a we the decided. think And think to margin new you will builds network don't progress. should being pause will think that continue I

Operator

Christian comes next question with Capital Craig-Hallum Schwab line from the Group. Our of

Christian Schwab

customers $XX long to million? how X get Cory, before back the large million $XX-some from

Cory Sindelar

that thought was I surprised going get would I'm the some would last by they that not decisions. they call Obviously, we I to quarter, anticipating wasn't to one. saw. decline make where

will go don't when to to some recover know point. and not it just We that I'm know and So not going when. back. dare I recover out will at in say

Christian Schwab

XXX in over revenue $XXX X X haven't quarterly you done spending years. revenue going haven't -- in to And years. keep million we're almost in $XXX we So done million approaching

Cory Sindelar

quarter. in million We the did fourth $XX

Michael Weening

$XXX did in We QX.

Christian Schwab

million, QX midpoint. at guiding and Yes, $XXX you're the $XXX quarter, to this million

Cory Sindelar

I $XXX done go haven't saying, We X what million years. you're back understand goes ahead, Chris.

Christian Schwab

point and How coming starting The going beginning customers feed heavy have talked the large in is do quarterly of OpEx growth, this idea of higher, what is significantly OpEx to a invest trickle the you is, your right? are we we basis? long I hold XX, no but And on about we're know back. a for

Cory Sindelar

there's line new understand We fiber $XX that million coming.

it what that and got We as confident are and but And would grow to and fundamental was anything actually strong. we the conversations. decision-making, to model time the I you OpEx Chairman we we're is doing in to with returns. Board, see in actually is week expand to leadership our continue are opportunity willing the so be yield for last significant recognize now margin for time, of identified before, to pour therefore, I'm ahead history and me point stated, the they've investments our business growing couldn't will very the this never At the first from wrong. because also their government going as have one this of in our that's do eloquently our to delaying is as our and time and these opportunity investment where as footprint largest time, team, the Customers you that coffee and we've put it I entertain to --

We are -- to investing

Christian Schwab

and be are expectations line? BEAD the large 'XX XX% customers growth with rate once should year is fiscal lifetime who on question recent of top last that XXXX the for substantially My under-spending the for significantly than generation of in target higher and or

Michael Weening

elements. we're X years is point, XX% And return the growth, of now. delivered 'XX. And growth audit. why years, we see that green we've we those why over working see a we're shoots on this that We in X the That's XXXX. That's XXXX all and different to last your this quite Possibly. to right stated comfortable see and we

So we and in we the do this see the question, previous calling were at Yes? asked but return to point, XX? not XX we're XX just

Operator

question-and-answer Thank Fanucchi I'll session. you. for Ladies comments. floor the to and gentlemen, turn any concludes Mr. back final our that

Jim Fanucchi

Thank you, Melissa.

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Operator

concludes This conference today's you. Thank call.

participation. You your this you may Thank lines at your disconnect for time.

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