Ribbon Communications Inc. reported a modest increase in revenue for the fiscal year ending December 31, 2024, totaling $833.9 million, up from $826.3 million in 2023. The growth was primarily driven by a $27.6 million increase in sales from the Cloud and Edge segment, which generated $505.2 million, while the IP Optical Networks segment saw a decrease of $20 million, bringing its revenue to $328.7 million. The company recorded a net loss of $54.2 million for 2024, an improvement from the $66.2 million loss reported in the previous year. The gross profit also increased to $439.5 million, resulting in a gross margin of 52.7%, compared to 49.4% in 2023.
In terms of operational developments, Ribbon Communications has made significant strides in integrating its business units following the acquisition of ECI Telecom Group in 2020. The company has streamlined its organizational structure, consolidating its Cloud and Edge and IP Optical Networks segments under a single leadership team. This restructuring is part of a broader strategy to enhance operational efficiency and drive growth in key markets, particularly in North America, where the company aims to increase its market share in IP Optical Networks.
The company reported a total employee headcount of 3,052 as of December 31, 2024, with a slight increase in hiring compared to the previous year. Ribbon's customer base spans over 140 countries, with Verizon Communications Inc. being a significant contributor, accounting for approximately 14% of total revenue in 2024. The company has also seen an increase in enterprise sales, which represented 39% of product revenue in 2024, up from 32% in 2023, indicating a growing demand for its solutions among enterprise customers.
Looking ahead, Ribbon Communications anticipates continued revenue growth in 2025, particularly in the Cloud and Edge segment, driven by increased purchases from U.S. service providers and federal agencies. However, the company also faces challenges, including geopolitical tensions affecting sales in Eastern Europe and India, as well as ongoing supply chain disruptions. The management remains cautious about the potential impacts of inflation and interest rates on operational costs and customer spending, which could influence future performance.
About Ribbon Communications Inc.
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