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Data-Driven Digital Marketing for Business Growth

Data-Driven Digital Marketing for Business Growth

In the dynamic digital landscape of 2025, businesses in the USA and Canada are increasingly adopting data-driven digital marketing strategies to achieve sustainable growth. By leveraging advanced analytics, artificial intelligence (AI)-powered tools, and precise customer segmentation, companies can optimize their marketing efforts, enhance return on investment (ROI), and build stronger connections with their audiences. This article explores the significance of data-driven marketing, key tools like Google Analytics, AI-driven advertising platforms, customer segmentation techniques, and real-world case studies from North American companies to illustrate practical applications.
Data-driven digital marketing involves using consumer data and analytics to inform and optimize marketing strategies. Unlike traditional marketing, which often relies on broad assumptions or intuition, data-driven approaches leverage real-time insights into customer behaviors, preferences, and market trends. This enables businesses to craft targeted campaigns that resonate with specific audience segments, improving engagement, conversions, and overall ROI. According to a 2024 study, 64% of marketers consider data their company's most underutilized asset, underscoring its potential to transform business outcomes.
In the USA and Canada, where diverse consumer markets demand personalized experiences, data-driven marketing is critical. With increasing competition and evolving consumer expectations, businesses must use precise targeting to stand out. By analyzing data from various sources—such as website interactions, social media engagement, and purchase histories—marketers can create campaigns that deliver the right message to the right audience at the right time.
Google Analytics remains a cornerstone for data-driven marketing, offering robust tools to track and analyze website performance, user behavior, and campaign effectiveness. In 2025, Google Analytics 4 (GA4) provides enhanced features like predictive metrics, cross-platform tracking, and AI-powered insights, enabling marketers to gain a holistic view of customer journeys. By integrating GA4 with Google Ads, businesses can optimize conversion bidding while prioritizing user privacy, as highlighted in recent posts on X.
Key GA4 features include: Event-Based Tracking : Tracks specific user actions, such as clicks, form submissions, or video views, providing granular insights into engagement.
: Tracks specific user actions, such as clicks, form submissions, or video views, providing granular insights into engagement. Audience Segmentation : Allows marketers to group users based on demographics, behaviors, or acquisition channels for targeted campaigns.
: Allows marketers to group users based on demographics, behaviors, or acquisition channels for targeted campaigns. Predictive Analytics : Uses machine learning to forecast user actions, such as likelihood to purchase, helping businesses prioritize high-value segments.
: Uses machine learning to forecast user actions, such as likelihood to purchase, helping businesses prioritize high-value segments. Cross-Channel Attribution: Tracks user interactions across websites, apps, and ads, offering a unified view of campaign performance.
For example, a Canadian e-commerce retailer could use GA4 to identify which product pages drive the most conversions, then retarget visitors with personalized ads based on their browsing history. This approach ensures efficient resource allocation and maximizes ROI.
AI-driven advertising platforms, such as Google's Display & Video 360, The Trade Desk, and Adobe Advertising Cloud, are transforming digital marketing in 2025. These platforms use machine learning to optimize ad placements, target specific audience segments, and deliver personalized content at scale. AI algorithms analyze vast datasets to predict consumer behavior, automate bidding strategies, and enhance ad relevance, resulting in higher conversion rates and lower costs.
A notable example is Omni Hotels & Resorts, a North American hospitality chain. By partnering with Google's Display & Video 360 and adopting the Publisher Advertiser Identity Reconciliation (PAIR) solution, Omni achieved a 4X increase in ad conversion rates compared to traditional cookie-based methods. This success highlights the power of AI in delivering relevant ads while respecting user privacy.
AI platforms also enable dynamic creative optimization (DCO), which tailors ad content in real-time based on user data. For instance, a US-based retailer could use DCO to display different ad creatives to users based on their location, interests, or past purchases, ensuring a personalized experience that drives engagement.
Customer segmentation is a critical component of data-driven marketing, allowing businesses to divide their audience into distinct groups based on shared characteristics. Effective segmentation enables tailored messaging, which significantly improves campaign performance. Common segmentation techniques include: Demographic Segmentation : Grouping audiences by age, gender, income, or location. For example, a Canadian fitness brand might target young professionals in urban areas with ads for premium gym memberships.
: Grouping audiences by age, gender, income, or location. For example, a Canadian fitness brand might target young professionals in urban areas with ads for premium gym memberships. Behavioral Segmentation : Based on user actions, such as purchase history, website visits, or content engagement. A US-based SaaS company could target users who downloaded a whitepaper with follow-up emails offering a free trial.
: Based on user actions, such as purchase history, website visits, or content engagement. A US-based SaaS company could target users who downloaded a whitepaper with follow-up emails offering a free trial. Psychographic Segmentation : Focuses on values, interests, and lifestyles. A luxury travel agency in Canada might segment audiences based on their preference for adventure travel versus luxury retreats.
: Focuses on values, interests, and lifestyles. A luxury travel agency in Canada might segment audiences based on their preference for adventure travel versus luxury retreats. Firmographic Segmentation: Used in B2B marketing to categorize businesses by industry, size, or revenue. A US-based software provider could target small businesses in the healthcare sector with tailored solutions.
Advanced tools like Salesforce and HubSpot facilitate segmentation by integrating data from multiple touchpoints, such as CRM systems, social media, and website analytics. By leveraging these platforms, businesses can create highly personalized campaigns that resonate with specific segments, driving engagement and loyalty.
To successfully leverage data-driven marketing, businesses should follow a structured approach: Define Clear Objectives: Establish specific, measurable goals, such as increasing website conversions by 20% or boosting email open rates by 10%. Clear objectives align marketing efforts with business outcomes. Collect High-Quality Data: Gather data from reliable sources, including CRM platforms (e.g., Salesforce), website analytics (e.g., Google Analytics), and social media insights (e.g., Facebook Insights). Ensure data accuracy and compliance with privacy regulations like GDPR and CCPA. Analyze and Segment: Use analytics tools to identify trends, patterns, and audience segments. Machine learning algorithms, such as K-Means++ clustering, can enhance segmentation accuracy by grouping customers based on purchase behavior or lifetime value. Develop Personalized Campaigns: Create tailored content and offers for each segment. For example, a US retailer could send discount codes to price-sensitive customers identified through call tracking data. Monitor and Optimize: Continuously track campaign performance using KPIs like click-through rates, conversion rates, and customer lifetime value. Use A/B testing to refine messaging and optimize results. Leverage AI and Automation: Automate repetitive tasks, such as email marketing or ad bidding, using AI tools to improve efficiency and scalability. AI-driven predictive analytics can also anticipate consumer trends, enabling proactive strategy adjustments. Ensure Compliance: Adhere to data privacy regulations by obtaining customer consent and using first-party data whenever possible. With third-party data restrictions increasing in 2025, first-party data from CRM systems and website analytics is critical.
Adopting a data-driven approach offers numerous benefits for businesses in the USA and Canada: Enhanced Personalization : Tailored campaigns resonate with audiences, leading to higher engagement and conversions. For example, 62% of consumers find personalized offers based on past purchases acceptable, driving loyalty.
: Tailored campaigns resonate with audiences, leading to higher engagement and conversions. For example, 62% of consumers find personalized offers based on past purchases acceptable, driving loyalty. Improved ROI : Precise targeting reduces wasted ad spend. A 2025 survey found that 82% of marketers plan to increase their use of first-party data to optimize campaigns.
: Precise targeting reduces wasted ad spend. A 2025 survey found that 82% of marketers plan to increase their use of first-party data to optimize campaigns. Deeper Customer Insights : Data analytics reveal motivations, preferences, and behaviors, enabling businesses to anticipate customer needs and deliver relevant experiences.
: Data analytics reveal motivations, preferences, and behaviors, enabling businesses to anticipate customer needs and deliver relevant experiences. Agility and Innovation : Real-time data monitoring allows marketers to adapt quickly to market shifts. AI-driven tools can analyze campaign performance in seconds, compared to days for traditional analytics.
: Real-time data monitoring allows marketers to adapt quickly to market shifts. AI-driven tools can analyze campaign performance in seconds, compared to days for traditional analytics. Competitive Advantage: Companies leveraging data-driven strategies, like Amazon and Netflix, outperform competitors by delivering superior customer experiences.
Despite its benefits, data-driven marketing presents challenges: Data Overload : Marketers may feel overwhelmed by the volume of available data. Solution: Prioritize high-quality data sources and use visualization tools like Tableau or Google Data Studio to simplify analysis.
: Marketers may feel overwhelmed by the volume of available data. Solution: Prioritize high-quality data sources and use visualization tools like Tableau or Google Data Studio to simplify analysis. Privacy Concerns : Stricter regulations like GDPR and CCPA require careful data handling. Solution: Focus on first-party data and transparent consent practices to build trust.
: Stricter regulations like GDPR and CCPA require careful data handling. Solution: Focus on first-party data and transparent consent practices to build trust. Skill Gaps : Many organizations lack in-house expertise for advanced analytics. Solution: Invest in training or partner with agencies specializing in data-driven marketing.
: Many organizations lack in-house expertise for advanced analytics. Solution: Invest in training or partner with agencies specializing in data-driven marketing. Data Silos: Fragmented data across platforms hinders insights. Solution: Integrate data sources using platforms like Salesforce or Adobe Analytics to create a unified view.
Amazon, a global e-commerce leader, exemplifies data-driven marketing through its AI-powered recommendation engine. By analyzing browsing history, purchase data, and product reviews, Amazon delivers highly personalized product suggestions, driving significant revenue growth. The company's use of machine learning to segment customers based on behavior and preferences has boosted customer satisfaction and retention. In 2024, Amazon's recommendation engine accounted for a substantial portion of its sales, demonstrating the power of data-driven personalization.
Key Takeaways: Leveraged customer data to create tailored recommendations.
Used AI algorithms to analyze large datasets in real-time.
Achieved higher engagement and conversions through personalization.
Omni Hotels & Resorts partnered with Google's Display & Video 360 to implement AI-driven advertising. By adopting the PAIR solution, Omni delivered privacy-conscious ads that resulted in a 4X increase in conversion rates compared to traditional methods. The campaign targeted specific customer segments based on travel preferences and booking behavior, enhancing relevance and engagement. This success underscores the importance of AI in navigating privacy-focused landscapes.
Key Takeaways: Utilized AI-driven ad platforms for precise targeting.
Prioritized user privacy while maintaining ad effectiveness.
Achieved significant ROI through data-driven ad optimization.
GreenPal, a US-based 'Uber for Lawn Care,' used publicly available datasets, such as weather data, to optimize its marketing campaigns. By analyzing user behavior and external factors, GreenPal reduced funnel drop-off rates, resulting in a 135% increase in conversion rates and 124% more conversions with 6% less budget. This case highlights the value of combining first-party and third-party data for targeted marketing.
Key Takeaways: Integrated external data to enhance campaign relevance.
Optimized user funnels based on data insights.
Achieved significant cost savings and improved conversions.
Vodafone, with operations in North America, automated data acquisition to link online prospect activities with offline sales data. By integrating data from multiple CRMs and call centers, Vodafone's marketing team created targeted campaigns that improved customer experiences and conversions. This case demonstrates the importance of breaking down data silos for a unified marketing strategy.
Key Takeaways: Integrated offline and online data for a holistic view.
Used automation to streamline data collection.
Enhanced campaign effectiveness through precise targeting.
As digital marketing evolves, several trends are shaping its future in the USA and Canada: Increased Reliance on First-Party Data : With third-party data restrictions tightening, 82% of marketers plan to prioritize first-party data in 2025, using CRM systems and website analytics to drive campaigns.
: With third-party data restrictions tightening, 82% of marketers plan to prioritize first-party data in 2025, using CRM systems and website analytics to drive campaigns. AI and Automation Growth : AI-driven tools will continue to automate tasks like content creation, ad optimization, and predictive analytics, enabling real-time personalization.
: AI-driven tools will continue to automate tasks like content creation, ad optimization, and predictive analytics, enabling real-time personalization. Complex Consumer Journeys : Consumers now interact with brands across dozens of touchpoints. Agile marketing solutions will leverage data to map and optimize these journeys.
: Consumers now interact with brands across dozens of touchpoints. Agile marketing solutions will leverage data to map and optimize these journeys. Hyper-Personalization : AI algorithms will enable real-time hyper-personalization, delivering content tailored to individual preferences across channels.
: AI algorithms will enable real-time hyper-personalization, delivering content tailored to individual preferences across channels. Ethical Data Use: Growing consumer awareness of privacy will push businesses to adopt transparent data practices, balancing personalization with trust.
Data-driven digital marketing is a powerful engine for business growth in the USA and Canada. By leveraging tools like Google Analytics, AI-driven advertising platforms, and customer segmentation techniques, businesses can create targeted, personalized campaigns that maximize ROI. Real-world case studies from companies like Amazon, Omni Hotels, GreenPal, and Vodafone illustrate the transformative impact of data-driven strategies. Despite challenges like data overload and privacy concerns, adopting a structured approach and investing in the right tools can unlock significant opportunities. As consumer expectations evolve and technology advances, businesses that embrace data-driven marketing will gain a competitive edge, fostering sustainable growth and lasting customer relationships
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Huhtamaki Oyj (HOYFF) Q2 2025 Earnings Call Highlights: Strong Fiber Packaging Growth and ...
Huhtamaki Oyj (HOYFF) Q2 2025 Earnings Call Highlights: Strong Fiber Packaging Growth and ...

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Huhtamaki Oyj (HOYFF) Q2 2025 Earnings Call Highlights: Strong Fiber Packaging Growth and ...

Net Sales: Organically grew with a positive flat number of EUR1 million, excluding currency and acquisitions. EBIT: Adjusted EBIT slightly ahead of the same period last year, with a EUR3 million negative impact from FX. Margin: Maintained a strong margin over 10% for the quarter. EPS: Flat for the quarter, with a 3% growth for the half year. Capital Expenditure: Reduced by 10% versus the same period last year. Foodservice Segment Margin: Delivered a strong margin of 9.6% for the quarter. North America Segment Growth: Strong growth of over 3% in the quarter, excluding FX impact. Flexible Packaging EBIT: Improved by EUR5 million in the quarter, with a half-year improvement of EUR10 million. Fiber Packaging Net Sales: Grew by 10%, driven by volumes and pricing. Net Debt to EBITDA: Reported at 2.1, with an increase due to lease liabilities and acquisition costs. Free Cash Flow: Good level for the quarter after a weak start to the year. Return on Investments: Maintained at previous year's level. Warning! GuruFocus has detected 3 Warning Sign with HOYFF. Release Date: July 24, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Huhtamaki Oyj (HOYFF) achieved an investment-grade credit rating from S&P, indicating improved financial stability. The company successfully completed a cost reduction program ahead of schedule, achieving EUR100 million in savings. Huhtamaki Oyj (HOYFF) reported strong progress in sustainability, with two-thirds of its portfolio now renewable, recyclable, or compostable. The acquisition of Zellwin Farms has been integrated into the North American business, contributing positively to the company's performance. The Fiber Packaging segment showed strong sales growth, driven by both volume and pricing, with a 10% increase in net sales. Negative Points Geopolitical tensions and market uncertainties continue to impact consumer behavior and overall market conditions. The weakening US dollar negatively affected the company's financial results, with significant currency impacts on both top line and EBIT. The Foodservice segment remains a soft market, experiencing negative growth and requiring cost adjustments to maintain profitability. Huhtamaki Oyj (HOYFF) faced a fire incident in one of its South African factories, impacting production and financial performance. The company reported a high impairment related to restructuring in the Foodservice Packaging division, affecting EBIT. Q & A Highlights Q: On Fiber Packaging, what's driving the strong 10% comparable growth in Q2, and can this be sustained throughout 2025? A: Ralf Wunderlich, CEO, explained that the strong growth in Fiber Packaging is primarily driven by the agricultural sector. The company expects continued growth supported by investments in Europe and the fading impact of the avian flu in Australia. They foresee good growth in Fiber Packaging for the foreseeable future. Q: Regarding North America, are customers interested in long-term contracts or just temporary workarounds? A: Ralf Wunderlich noted that North America is seeing growth from investments made last year. Customers are signing up for medium-term commitments, particularly in states committed to sustainability. The company is optimistic about continued growth in this region. Q: Can you discuss the volume trends in the Foodservice and Flexible Packaging divisions in early July? A: Thomas Geust, CFO, stated that July trends are consistent with Q2, with no significant changes. They expect improvement in Foodservice in Europe towards the end of the year, particularly in the UK. Flexible Packaging is expected to benefit from new contracts with large multinationals by the end of the year. Q: What are the benefits of the restructuring done this quarter? A: Ralf Wunderlich mentioned that the restructuring has already contributed to the EUR100 million cost savings target. The company will continue with cost initiatives to maintain competitiveness and profitability. Q: What is the outlook for volumes and pricing in the second half of the year? A: Ralf Wunderlich expects similar trends in Q3 as seen in Q2, assuming no major geopolitical or economic disruptions. The company will continue focusing on cost opportunities and growth initiatives, with significant impacts expected from North American investments by the end of the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

FIBRA Macquarie México Reports Second Quarter 2025 Results
FIBRA Macquarie México Reports Second Quarter 2025 Results

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FIBRA Macquarie México Reports Second Quarter 2025 Results

MEXICO CITY--(BUSINESS WIRE)--FIBRA Macquarie México (FIBRAMQ) (BMV: FIBRAMQ) announced its financial and operating results for the second quarter ended June 30, 2025. SECOND QUARTER 2025 HIGHLIGHTS Total Industrial portfolio leasing activity comprised 1.3 million square feet of GLA, including early renewals of 424 thousand square feet Solid tenant retention rates of approximately 80% across Industrial and Retail portfolios Consolidated 2Q25 NOI up 18.1% YoY in Peso terms Consolidated 2Q25 AFFO up 23.3% YoY in Peso terms 'We are proud to report another quarter of strong performance, highlighted by record results across multiple metrics, including AFFO per certificate that was up 8.6% in underlying US dollar terms, to US$30.3 million,' said Simon Hanna, FIBRA Macquarie's chief executive officer. 'Our industrial portfolio continues to demonstrate remarkable strength, achieving record leasing renewal spreads of 27.7%, and the continued demand for space in our markets is reflected in our solid retention and rental rate growth across both our industrial and retail portfolios. On the growth capex front, we are particularly excited about our expanded development program in Tijuana, which represents an attractive opportunity with plans for four Class A buildings totaling approximately 750 thousand square feet. This strategic investment aligns with our long-term vision for sustainable growth in key markets.' Mr. Hanna continued, 'Through our prudent financial management, we have maintained our strong balance sheet position, with ample liquidity and prudent leverage. While we remain mindful of broader economic uncertainties, Mexico maintains a key strategic position within North American supply chains. We continue to successfully navigate the current market conditions, while pursuing selective growth opportunities and maintaining our commitment to disciplined capital allocation. With our reaffirmed full-year US dollar AFFO and distribution per CBFI guidance, we are confident in our ability to deliver sustained value for our certificate holders.' CAPITAL ALLOCATION FIBRAMQ continues to pursue a strategy of investing in and developing Class A industrial assets in core markets that demonstrate strong performance and a positive economic outlook. Industrial Portfolio Growth Capex Program FIBRAMQ has approximately 600 thousand square feet of GLA in stabilization. No new building construction starts were commenced during the quarter. The forecast 2025 cash investment for the industrial development program continues to be in a range of US$50.0 million to US$100.0 million. FIBRAMQ remains disciplined in its capital deployment as it stabilizes recent deliveries and maintains an attractive future growth pipeline. FIBRAMQ continues to target a NOI development yield on cost between 9.0% and 11.0%, which incorporates the highest sustainability standards and is designed to generate embedded operational efficiencies for its customers. Projects in process are summarized below. For further details regarding recently delivered projects, please refer to the Supplementary Information materials located at BMV Filings ( Industrial Development Projects in Process Guadalajara, Jalisco FIBRAMQ continues to make progress in pre-development works including obtaining initial permits, licenses and commencement of initial infrastructure works for the first building comprising 330 thousand square feet of GLA FIBRAMQ anticipates developing two Class A buildings in this park over time, with a total GLA of approximately 460 thousand square feet Apodaca, Nuevo León FIBRAMQ is marketing for lease a 200 thousand square foot property that was delivered during 3Q24 Tijuana, Baja California FIBRAMQ is marketing for lease a 385 thousand square foot property that was delivered during 2Q25 FIBRAMQ has entered into a 50-50 joint venture to develop an industrial park in the prime Pacifico/Libramiento submarket of Tijuana. The project will feature up to four Class A industrial buildings, totaling approximately 750 thousand square feet of GLA with pre-development works, including obtaining initial permits and licenses, and commencement of initial infrastructure works underway FINANCIAL AND OPERATING RESULTS Consolidated Portfolio FIBRAMQ's consolidated 2Q25 results were as follows: Industrial Portfolio The following table summarizes 2Q25 results for FIBRAMQ's industrial portfolio: FIBRAMQ's industrial portfolio performance remains robust, with growing average rental rates and sustained retention. For the quarter ended June 30, 2025, FIBRAMQ's industrial portfolio delivered NOI of US$51.1 million, a 6.0% increase YoY. Total leasing activity comprised 1.3 million square feet, including 120 thousand square feet of new leases. Renewal leases comprised 14 contracts across 1.1 million square feet, driving a retention rate of 93.2% for the quarter and 80.1% over the last 12 months. For the remainder of the year, FIBRAMQ's industrial portfolio scheduled lease expirations, including expired leases in regularization, total 4.8% of annualized base rents. Retail Portfolio The following table summarizes the proportionally combined 2Q25 results for FIBRAMQ's retail portfolio: FIBRAMQ signed 54 new and renewal leases during the quarter totaling 11.5 thousand square meters of GLA, across a diverse range of tenants. The retail portfolio has a retention of 77.8% over the last twelve months. Of note, retail portfolio occupancy of 93.4% represents a post-pandemic record. Lease Rental Rate Summary Based on annualized base rents, leases in FIBRAMQ's consolidated portfolio is now 71.2% linked to either Mexican or US CPI, representing an increase of 525 bps over the last twelve months. In the Industrial portfolio, FIBRAMQ achieved a weighted average positive releasing spread of 27.7% in respect of 2Q25. During the prior 12-month period, FIBRAMQ achieved a weighted average lease spread of 22.0% in respect of commercially negotiated lease renewals generating US$33.2 million of annualized base rent. For further details about FIBRA Macquarie's Second Quarter 2025 results, please refer to the Supplementary Information materials located at BMV Filings ( Replacement of Trustee As previously announced, FIBRAMQ replaced CIBanco, S.A., Institución de Banca Múltiple ('CIBanco') with HSBC México, S.A., Institución de Banca Múltiple, Grupo Financiero HSBC, as FIBRA trustee effective July 18, 2025. BALANCE SHEET At June 30, 2025, FIBRAMQ had US$1,230.2 million of debt outstanding and total liquidity of US$420.9 million comprising US$228.8 million available on its undrawn committed revolving credit facilities as well as US$192.1 million of unrestricted cash on hand. FIBRAMQ's indebtedness is 85.0% fixed rate, with 3.0 years of weighted average tenor remaining. As of June 30, 2025, FIBRAMQ's CNBV regulatory debt to total asset ratio was 33.7% and debt service coverage ratio was 6.3x. CERTIFICATE REPURCHASE PROGRAM FIBRAMQ has a Ps. 1,000 million CBFI repurchase-for-cancellation program available through to June 25, 2026. No certificates were repurchased during the quarter. SUSTAINABILITY At June 30, 2025, FIBRA Macquarie's green building certification coverage represented 41.8% of consolidated GLA, representing an increase of 481bps YoY. The sustainability and green financing linked portion of drawn debt stands at 68.3% DISTRIBUTION FIBRAMQ declared a cash distribution of Ps. 0.6125 per certificate for the quarter ended June 30, 2025. The distribution is expected to be paid on or about September 26, 2025, to holders of record on September 25, 2025. FIBRAMQ's certificates are expected to commence trading ex-distribution on September 25, 2025. FY25 GUIDANCE AFFO FIBRA Macquarie is reaffirming its FY25 AFFO guidance in underlying US dollar terms to a range of US$115.0 million to US$119.0 million, representing an annual increase of between 1.0% and 5.0%. FIBRAMQ maintains a cautious outlook on operational performance for 2025, and this guidance assumes no material deterioration of the geopolitical landscape or Mexico's key trading relationships. This guidance assumes: an average exchange rate of Ps. 18.50 per US dollar for the remainder of 2025; no new acquisitions or divestments; no issuances or repurchases of certificates; no deterioration in broader economic and market conditions, including the potential implementation of tariffs or deterioration in the trade relationship with key trading partners Following the recent appreciation of the Peso relative to the US dollar, FIBRAMQ is updating its FY25 AFFO per certificate guidance to a range of Ps. 2.80 to Ps. 2.85. Cash Distribution FIBRAMQ is reaffirming guidance for cash distributions in FY25 of Ps. 2.45 per certificate, paid in equal quarterly instalments of Ps. 0.6125 per certificate. The FY25 per certificate cash distribution guidance equates to an annual increase of 16.7% in Peso terms, with an expected FY25 AFFO payout ratio of approximately 87.0%, based on the AFFO guidance midpoint. In underlying USD terms, the FY25 cash distribution guidance equates to approximately US$101 million, representing an annual increase of 10.8%. The payment of distributions is subject to the approval of the Manager, stable market conditions and prudent management of FIBRAMQ's capital position. Outstanding certificates FIBRA Macquarie had 797,311,397 outstanding certificates as of June 30, 2025. WEBCAST AND CONFERENCE CALL FIBRAMQ will host an earnings conference call and webcast presentation on Friday, July 25, 2025, at 11:00 a.m. CT / 13:00 p.m. ET. The conference call, which will also be webcast, can be accessed online at or by dialing toll free +1-877-407-2988. Callers from Mexico may dial 01-800-522-0034 and other callers from outside the United States may dial +1-201-389-0923. Please ask for the FIBRA Macquarie Second Quarter 2025 Earnings Call. An audio replay will be available by dialing +1-877-660-6853 or +1-201-612-7415 for callers from outside the United States. A webcast archive of the conference call and FIBRA Macquarie's financial information for the second quarter 2025 will also be available on FIBRAMQ's website, About FIBRA Macquarie FIBRA Macquarie México (FIBRA Macquarie) (BMV:FIBRAMQ) is a real estate investment trust (fideicomiso de inversión en bienes raíces), or FIBRA, listed on the Mexican Stock Exchange (Bolsa Mexicana de Valores) targeting industrial, retail and office real estate opportunities in Mexico, with a primary focus on stabilized income-producing properties. FIBRA Macquarie's portfolio consists of 243 industrial properties and 17 retail properties, located in 20 cities across 16 Mexican states as of June 30, 2025. Nine of the retail properties are held through a 50/50 joint venture. For additional information about FIBRA Macquarie, please visit Cautionary Note Regarding Forward-looking Statements This release may contain forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ significantly from these forward-looking statements and we undertake no obligation to update any forward-looking statements. Other than Macquarie Bank Limited ABN 46 008 583 542 ('Macquarie Bank'), any Macquarie Group entity noted in this document is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these other Macquarie Group entities do not represent deposits or other liabilities of Macquarie Bank. Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these other Macquarie Group entities. In addition, if this document relates to an investment, (a) the investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group entity guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment. THIS RELEASE IS NOT AN OFFER FOR SALE OF SECURITIES IN THE UNITED STATES, AND SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED.

Ribbon Communications Inc. Reports Second Quarter 2025 Financial Results
Ribbon Communications Inc. Reports Second Quarter 2025 Financial Results

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Ribbon Communications Inc. Reports Second Quarter 2025 Financial Results

Record Second Quarter Revenue Up 15% Year Over Year Profitability at High End of Guidance Robust Growth in Service Provider and Enterprise Markets PLANO, Texas, July 23, 2025 /PRNewswire/ -- Ribbon Communications Inc. (Nasdaq: RBBN), a leading supplier of real-time communications technology and IP optical networking solutions, today announced its financial results for the second quarter of 2025. Ribbon Communications is dedicated to assisting the world's largest service providers, enterprises, and critical infrastructure operators in modernizing and safeguarding their networks and services. Second Quarter 2025 Highlights Financial Highlights¹: Revenue was $221 million, compared to $193 million for the second quarter of 2024 GAAP Operating Income was $4 million, compared to a loss of $2 million for the second quarter of 2024 Non-GAAP Adjusted EBITDA was $32 million, compared to $22 million for the second quarter of 2024 GAAP Gross Margin was 49.6%, compared to 50.8% for the second quarter of 2024 Non-GAAP Gross Margin was 52.1%, compared to 54.4% for the second quarter of 2024 "I am very pleased with our strong financial performance in the second quarter with both revenue and earnings exceeding our growth projections, resulting in a successful first half of the year. Demand in the North American market was strong across both Service Provider and Enterprise market verticals as we continue to win the largest industry voice transformation opportunities. And we had good momentum in our IP Optical business in India and North America this quarter supporting fiber and mobile network expansion," stated Bruce McClelland, President and Chief Executive Officer of Ribbon Communications. "Looking ahead, the demand picture remains robust with good visibility, and we continue to anticipate a seasonally stronger second half of the year." John Townsend, Chief Financial Officer, added, "It was great to see our business momentum reflected in our second quarter results. Revenue increased 15% year over year to $221 million, exceeding guidance, and Adjusted EBITDA increased 47% year over year to $32 million, at the top end of our guidance. In the quarter, we announced a new stock repurchase program and expect to use a portion of our free cash flow over the next several years to repurchase up to $50 million of our common stock. Our cash position remained solid, closing the quarter at $62 million including $2.3 million of stock repurchases. In addition, the new U.S. spending bill recently approved by Congress includes corporate tax changes that are expected to result in lower cash tax payments in the second half, which should further improve our cash flow this year." Three months endedSix months ended June 30,June 30, In millions, except per share amounts2025202420252024 GAAP Revenue$ 221$ 193$ 402$ 372 GAAP Net income (loss)$ (11)$ (17)$ (37)$ (47) Non-GAAP Net income (loss)$ 10$ 9$ 5$ 7 Non-GAAP Adjusted EBITDA$ 32$ 22$ 38$ 33 GAAP diluted earnings (loss) per share $ (0.06)$ (0.10)$ (0.21)$ (0.27) Non-GAAP diluted earnings (loss) per share$ 0.05$ 0.05$ 0.03$ 0.04 Weighted average shares outstanding basic177174176173 Weighted average shares outstanding diluted1801761801761 Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules. Business Highlights: Ribbon Announces $50 Million Share Repurchase Program Ribbon Showcases AI-Enabled Optical Innovation at OFC NPT 2714 Router and Apollo ADM 400/800 Optical Transport recognized by Lightwave Kerala State Leverages Ribbon for its Kerala Fiber Optic Network (KFON) Deployment | Ribbon Communications Government of Kerala delivers high speed internet to rural India Business Outlook2 For the third quarter of 2025, the Company projects revenue of $213 million to $227 million. Non-GAAP gross margin is projected in a range of 53.5% to 54.0%. Adjusted EBITDA is projected in a range of $28 million to $34 million. Full Year 2025 projections remain unchanged. The Company's outlook is based on current indications for its business, which are subject to change. 2 GAAP earnings guidance is not provided. Please see the reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures and additional information about the non-GAAP measures in the section entitled "Discussion of Non-GAAP Financial Measures" in the attached schedules. Upcoming Conference Schedule August 26-27, 2025: Jefferies Semis, IT Hardware & Comm Tech Summit September 4, 2025: TD Securities Technology Growth Cap Summit Conference Call and Webcast InformationRibbon Communications will host a conference call to discuss the Company's financial results at 4:30 p.m. ET on Wednesday, July 23, 2025. Dial-in Information: US/Canada: 877-407-2991International: 201-389-0925Instant Telephone Access: Call me™ A live (listen-only) webcast and replay will be available on the Company's Investor Relations website at Investor Contact+1 (978) 614-8050ir@ Media ContactCatherine Berthier+1 (646) 741-1974cberthier@ About Ribbon Ribbon Communications (Nasdaq: RBBN) delivers communications software, IP and optical networking solutions to service providers, enterprises and critical infrastructure sectors globally. We engage deeply with our customers, helping them modernize their networks for improved competitive positioning and business outcomes in today's smart, always-on and data-hungry world. Our innovative, end-to-end solutions portfolio delivers unparalleled scale, performance, and agility, including core to edge software-centric solutions, cloud-native offers, leading-edge security and analytics tools, along with IP and optical networking solutions for 5G and broadband internet. We maintain a keen focus on our commitments to Environmental, Social and Governance (ESG) matters, offering an annual Sustainability Report to our stakeholders. To learn more about Ribbon visit Important Information Regarding Forward-Looking Statements This release contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, which are subject to a number of risks and uncertainties. All statements other than statements of historical facts contained in this release, including without limitation, statements regarding the Company's projected financial results for the third quarter of 2025 and beyond; beliefs about the Company's business strategy and market share growth, are forward-looking statements. Without limiting the foregoing, the words "anticipates", "believes", "could", "estimates", "expects", "expectations", "intends", "may", "plans", "projects" and other similar language, whether in the negative or affirmative, are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on the Company's current expectations and assumptions regarding its business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are unknown and/or difficult to predict and that may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to, unpredictable fluctuations in quarterly revenue and operating results; the impact of restructuring and cost-containment activities; increases in tariffs, trade restrictions or taxes on the Company's products; supply chain disruptions resulting from component availability and/or geopolitical instabilities and disputes (including those related to the wars in Israel and Ukraine); the impact of military call-ups of employees in Israel; material litigation; the impact of fluctuations in interest rates; material cybersecurity and data intrusion incidents, including any security breaches resulting in the theft, transfer, or unauthorized disclosure of customer, employee, or Company information; the Company's ability to comply with applicable domestic and foreign information security and privacy laws, regulations and technology platform rules or other obligations related to data privacy and security; failure to compete successfully against telecommunications equipment and networking companies; failure to grow the Company's customer base or generate recurring business from existing customers; credit risks; the timing of customer purchasing decisions and the Company's recognition of revenues; macroeconomic conditions, including inflation; the Company's ability to adapt to rapid technological and market changes; the Company's ability to generate positive returns on its research and development; the Company's ability to protect its intellectual property rights and obtain necessary licenses; the Company's ability to maintain partner, reseller, distribution and vendor support and supply relationships; the potential for defects in the Company's products; risks related to the terms of the Company's credit agreement; higher risks in international operations and markets; currency fluctuations; unanticipated adverse changes in legal, regulatory or tax laws; future accounting pronouncements or changes in the Company's accounting policies and/or failure or circumvention of the Company's controls and procedures. We therefore caution you against relying on any of these forward-looking statements. These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the Company's business and results from operations. Additional information regarding these and other factors can be found in the Company's reports filed with the Securities and Exchange Commission, including, without limitation, its Form 10-K for the year ended December 31, 2024. Any forward-looking statement made by the Company in this release speaks only as of the date on which this release was first issued. The Company undertakes no obligation to update any forward-looking statement publicly or otherwise, whether as a result of new information, future developments or otherwise, except as required by law. Discussion of Non-GAAP Financial MeasuresThe Company's management uses several different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of its business, making operating decisions, planning and forecasting future periods, and determining payments under compensation programs. The Company considers the use of non-GAAP financial measures helpful in assessing the core performance of its continuing operations and when planning and forecasting future periods. The Company's annual financial plan is prepared on a non-GAAP basis and is approved by its board of directors. In addition, budgeting and forecasting for revenue and expenses are conducted on a non-GAAP basis, and actual results on a non-GAAP basis are assessed against the annual financial plan. The Company defines continuing operations as the ongoing results of its business adjusted for certain expenses and credits, as described below. The Company believes that providing non-GAAP information to investors allows them to view the Company's financial results in the way its management views them and helps investors to better understand the Company's core financial and operating performance and evaluate the efficacy of the methodology and information used by its management to evaluate and measure such performance. While the Company's management uses non-GAAP financial measures as tools to enhance its understanding of certain aspects of the Company's financial performance, management does not consider these measures to be a substitute for, or superior to, GAAP measures. In addition, the Company's presentations of these measures may not be comparable to similarly titled measures used by other companies. These non-GAAP financial measures should not be considered alternatives for, or in isolation from, the financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures. In particular, many of the adjustments to the Company's financial measures reflect the exclusion of items that are recurring and will be reflected in its financial results for the foreseeable future. Stock-Based CompensationThe expense related to stock-based awards is generally not controllable in the short-term and can vary significantly based on the timing, size and nature of awards granted. The Company believes that presenting non-GAAP operating results that exclude stock-based compensation provides investors with visibility and insight into its management's method of analysis and its core operating performance. Amortization of Acquired Technology (including software licenses); Amortization of Acquired Intangible AssetsAmortization amounts are inconsistent in frequency and amount and are significantly impacted by the timing and size of acquisitions. Amortization of acquired technology is reported separately within Cost of revenue and Amortization of acquired intangible assets is reported separately within Operating expenses. These items are reported collectively as Amortization of acquired intangible assets in the accompanying reconciliations of non-GAAP and GAAP financial measures. The Company believes that excluding non-cash amortization of these intangible assets facilitates the comparison of its financial results to its historical operating results and to other companies in its industry as if the acquired intangible assets had been developed internally rather than acquired. Litigation CostsIn connection with certain ongoing litigation where Ribbon is the defendant (as described in the Company's Commitments and Contingencies footnotes in its Form 10-Qs and Form 10-Ks filed with the SEC, the Company has incurred litigation costs beginning in 2023. These costs are included as a component of general and administrative expense. The Company believes that such costs are not part of its core business or ongoing operations, are unplanned, and generally are not within its control. Accordingly, the Company believes that excluding litigation costs related to these specific legal matters facilitates the comparison of the Company's financial results to its historical operating results and to other companies in its industry. Acquisition-, Disposal- and Integration-RelatedThe Company considers certain acquisition-, disposal- and integration-related costs to be unrelated to the organic continuing operations of the Company and its acquired businesses. Such costs are generally not relevant to assessing or estimating the long-term performance of the acquired assets. In the second quarter of 2025, the Company recorded $3.9 million of expense for legal and professional fees associated with contemplated corporate development activities. The Company excludes such acquisition-, disposal- and integration-related costs to allow more accurate comparisons of its financial results to its historical operations and the financial results of less acquisitive peer companies and allows management and investors to consider the ongoing operations of the business both with and without such expenses. Restructuring and RelatedThe Company has recorded restructuring and related expense to streamline operations and reduce operating costs by closing and consolidating certain facilities and reducing its worldwide workforce. The Company believes that excluding restructuring and related expense facilitates the comparison of its financial results to its historical operating results and to other companies in its industry, as there are no future revenue streams or other benefits associated with these costs. Preferred Stock and Warrant Liability Mark-to-Market AdjustmentThe Company recorded adjustments to the fair value of its Series A Preferred Stock and Warrants to purchase shares of the Company's common stock in Other (expense) income, net. Both of these instruments were issued in March 2023 in connection with the Company's private placement and have been classified as liabilities and marked to market each reporting period until the Series A Preferred Stock was fully redeemed on June 25, 2024. The Warrant liability remains outstanding and will continue to be marked to market each reporting period. The Company excluded these gains and losses from the change in the fair value of these liabilities because it believes that such gains or losses were not part of its core business or ongoing operations. Tax Effect of Non-GAAP AdjustmentsThe Non-GAAP income tax provision is presented based on an estimated tax rate applied against forecasted annual non-GAAP income. The Non-GAAP income tax provision assumes no available net operating losses or valuation allowances for the U.S. because of reporting significant cumulative non-GAAP income over the past several years. The Company is reporting its non-GAAP quarterly income taxes by computing an annual rate for the Company and applying that single rate (rather than multiple rates by jurisdiction) to its consolidated quarterly results. The Company expects that this methodology will provide a consistent rate throughout the year and allow investors to better understand the impact of income taxes on its results. Due to the methodology applied to its estimated annual tax rate, the Company's estimated tax rate on non-GAAP income will differ from its GAAP tax rate and from its actual tax liabilities. Adjusted EBITDAThe Company uses Adjusted EBITDA as a supplemental measure to review and assess its performance. The Company calculates Adjusted EBITDA by excluding from income (loss) from operations: depreciation; stock-based compensation; amortization of acquired intangible assets; certain litigation costs; acquisition-, disposal- and integration-related expense; and restructuring and related expense. In general, the Company excludes the expenses that it considers to be non-cash and/or not a part of its ongoing operations. The Company may exclude other items in the future that have those characteristics. Adjusted EBITDA is a non-GAAP financial measure that is used by the investing community for comparative and valuation purposes. The Company discloses this metric to support and facilitate dialogue with research analysts and investors. Other companies may calculate Adjusted EBITDA differently than the Company does, limiting its usefulness as a comparative measure. RIBBON COMMUNICATIONS INC. Consolidated Statements of Operations (in thousands, except percentages and per share amounts) (unaudited) Three months ended June 30,March 31,June 30, 202520252024 Revenue:Product $ 115,057$ 81,991$ 99,133Service 105,52699,28893,487 Total revenue 220,583181,279192,620Cost of revenue: Product 66,74657,89354,845Service 39,25335,62833,376Amortization of acquired technology 5,2775,3886,532 Total cost of revenue 111,27698,90994,753Gross profit 109,30782,37097,867Gross margin 49.6 %45.4 %50.8 %Operating expenses: Research and development 44,69643,56843,489Sales and marketing 32,53631,78832,984General and administrative 16,63015,12814,901Amortization of acquired intangible assets 5,9756,1556,508Acquisition-, disposal- and integration-related 3,898--Restructuring and related 1,3465,3411,920 Total operating expenses 105,081101,98099,802Income (loss) from operations 4,226(19,610)(1,935) Interest expense, net (10,977)(10,500)(3,879) Other (expense) income, net (2,159)3,129(9,503)Income (loss) before income taxes (8,910)(26,981)(15,317) Income tax benefit (provision) (2,183)754(1,499)Net income (loss) $ (11,093)$ (26,227)$ (16,816)Earnings (loss) per share: Basic$ (0.06)$ (0.15)$ (0.10)Diluted $ (0.06)$ (0.15)$ (0.10)Weighted average shares used to compute earnings (loss) per share: Basic176,749175,719173,793Diluted 176,749175,719173,793 RIBBON COMMUNICATIONS INC. Consolidated Statements of Operations (in thousands, except percentages and per share amounts) (unaudited) Six months ended June 30,June 30, 20252024 Revenue:Product $ 197,048$ 186,743Service 204,814185,541 Total revenue 401,862372,284Cost of revenue: Product 124,639100,639Service 74,88168,740Amortization of acquired technology 10,66513,083 Total cost of revenue 210,185182,462Gross profit 191,677189,822Gross margin 47.7 %51.0 %Operating expenses: Research and development 88,26489,252Sales and marketing 64,32467,700General and administrative 31,75830,092Amortization of acquired intangible assets 12,13013,214Acquisition-, disposal- and integration-related 3,898-Restructuring and related 6,6874,985 Total operating expenses 207,061205,243Income (loss) from operations (15,384)(15,421) Interest expense, net (21,477)(9,866) Other (expense) income, net 970(17,016)Income (loss) before income taxes (35,891)(42,303) Income tax benefit (provision) (1,429)(4,874)Net loss$ (37,320)$ (47,177)Earnings (loss) per share: Basic$ (0.21)$ (0.27)Diluted $ (0.21)$ (0.27)Weighted average shares used to compute earnings (loss) per share: Basic176,237173,110Diluted 176,237173,110 RIBBON COMMUNICATIONS INC. Consolidated Balance Sheets (in thousands) (unaudited) June 30,December 31, 20252024 AssetsCurrent assets: Cash and cash equivalents $ 60,450$ 87,770Restricted cash 1,8242,709Accounts receivable, net 249,360254,718Inventory 80,29979,179Other current assets 42,00739,286 Total current assets 433,940463,662Property and equipment, net 66,65960,364 Intangible assets, net 164,742187,537 Goodwill300,892300,892 Deferred income taxes 99,31488,982 Operating lease right-of-use assets 47,38334,544 Other assets 29,24226,573 $ 1,142,172$ 1,162,554Liabilities and Stockholders' EquityCurrent liabilities: Current portion of term debt $ 8,750$ 6,125Accounts payable 88,69787,759Accrued expenses and other 90,144106,251Operating lease liabilities 10,8169,443Deferred revenue 115,212119,295 Total current liabilities 313,619328,873Long-term debt, net of current 327,625330,726 Warrant liability 6,2738,064 Operating lease liabilities, net of current 62,06337,376 Deferred revenue, net of current 31,74920,991 Deferred income taxes 5,9415,941 Other long-term liabilities 24,46725,962Total liabilities 771,737757,933Commitments and contingencies Stockholders' equity: Common stock 1818Additional paid-in capital 1,973,9901,970,708Accumulated deficit (1,611,505)(1,574,185)Accumulated other comprehensive income 7,9328,080Total stockholders' equity 370,435404,621 $ 1,142,172$ 1,162,554 RIBBON COMMUNICATIONS INC. Consolidated Statements of Cash Flows (in thousands) (unaudited)Six months ended June 30, June 30, 20252024 Cash flows from operating activities: Net loss$ (37,320)$ (47,177)Adjustments to reconcile net loss to cash flows (used in) provided by operating activities:Depreciation and amortization of property and equipment 7,7576,770 Amortization of intangible assets 22,79526,297 Amortization of debt issuance costs and original issue discount 1,4013,445 Amortization of accumulated other comprehensive gain related to interest rate swap -(8,196) Stock-based compensation 8,7758,016 Deferred income taxes (8,984)(8,104) Change in fair value of warrant liability (1,641)875 Change in fair value of preferred stock liability -8,091 Dividends accrued on preferred stock liability -2,743 Payment of dividends accrued on preferred stock liability -(6,686) Foreign currency exchange (gains) losses 5872,023 Changes in operating assets and liabilities: Accounts receivable 4,57856,146Inventory (2,820)(4,405)Other operating assets ...(186)8,854Accounts payable 5,083(20,541)Accrued expenses and other long-term liabilities (11,030)(8,407)Deferred revenue 6,675(16,422) Net cash (used in) provided by operating activities (4,330)3,322 Cash flows from investing activities: Purchases of property and equipment (17,831)(5,613)Purchases of software licenses -(263) Net cash used in investing activities (17,831)(5,876) Cash flows from financing activities: Borrowings under revolving line of credit -44,106Principal payments on revolving line of credit -(44,106)Proceeds from issuance of term debt -342,300Principal payments of term debt (1,750)(235,395)Payment of debt issuance costs -(3,978)Payment of preferred stock liability -(56,850)Proceeds from the exercise of stock options 617Payment of tax obligations related to vested stock awards and units (3,396)(2,638)Repurchase of common stock (2,253)- Net cash used in financing activities (7,393)43,456 Effect of exchange rate changes on cash and cash equivalents 1,349(124) Net (decrease) increase in cash and cash equivalents (28,205)40,778 Cash, cash equivalents and restricted cash, beginning of year 90,47926,630 Cash, cash equivalents and restricted cash, end of period $ 62,274$ 67,408 RIBBON COMMUNICATIONS INC. Supplemental Information (in thousands) (unaudited) The following tables provide the details of stock-based compensation included as components of other line items in the Company's Consolidated Statements of Operations and the line items in which these amounts are reported. Three months ended Six months ended June 30,March 31,June 30,June 30,June 30, 20252025202420252024 Stock-based compensationCost of revenue - product $ 33$ 66$ 64$ 99$ 170 Cost of revenue - service 198286274484746Cost of revenue 231352338583916Research and development 4557256161,1801,684 Sales and marketing 1,0661,1739542,2392,111 General and administrative 2,7252,0481,5864,7733,305Operating expense 4,2463,9463,1568,1927,100Total stock-based compensation $ 4,477$ 4,298$ 3,494$ 8,775$ 8,016 RIBBON COMMUNICATIONS INC. Reconciliation of Non-GAAP and GAAP Financial Measures (in thousands, except per share amounts) (unaudited) Three months ended June 30,March 31,June 30,202520252024 GAAP Gross margin 49.6 %45.4 %50.8 % Stock-based compensation 0.1 %0.2 %0.2 % Amortization of acquired technology 2.4 %3.0 %3.4 % Non-GAAP Gross margin 52.1 %48.6 %54.4 % GAAP Net income (loss) $ (11,093)$ (26,227)$ (16,816) Stock-based compensation 4,4774,2983,494 Amortization of intangible assets 11,25211,54313,040 Litigation costs 2,3148001,768 Acquisition-, disposal- and integration-related 3,898-- Restructuring and related 1,3465,3411,920 Preferred stock and warrant liability mark-to-market adjustment 94(1,735)8,210 Tax effect of non-GAAP adjustments (2,679)1,401(3,095) Non-GAAP Net income (loss) $ 9,609$ (4,579)$ 8,521 GAAP Diluted earnings (loss) per share $ (0.06)$ (0.15)$ (0.10) Stock-based compensation 0.020.020.02 Amortization of intangible assets 0.060.070.08 Litigation costs 0.01 * 0.01 Acquisition-, disposal- and integration-related 0.02-- Restructuring and related 0.010.030.01 Preferred stock and warrant liability mark-to-market adjustment * (0.01)0.05 Tax effect of non-GAAP adjustments (0.01)0.01(0.02) Non-GAAP Diluted earnings (loss) per share $ 0.05$ (0.03)$ 0.05 Weighted average shares used to compute diluted earnings (loss) per share Shares used to compute GAAP diluted earnings (loss) per share 176,749175,719173,793 Shares used to compute Non-GAAP diluted earnings (loss) per share 179,884175,719176,246 GAAP Income (loss) from operations $ 4,226$ (19,610)$ (1,935) Depreciation 4,2883,4693,376 Stock-based compensation 4,4774,2983,494 Amortization of intangible assets 11,25211,54313,040 Litigation costs 2,3148001,768 Acquisition-, disposal- and integration-related 3,898-- Restructuring and related 1,3465,3411,920 Non-GAAP Adjusted EBITDA $ 31,801$ 5,841$ 21,663 * Less than $0.01 impact on earnings (loss) per share. RIBBON COMMUNICATIONS INC. Reconciliation of Non-GAAP and GAAP Financial Measures (in thousands, except per share amounts) (unaudited)Six months endedJune 30,June 30,20252024 GAAP Gross Margin 47.7 %51.0 % Stock-based compensation 0.1 %0.2 % Amortization of acquired technology 2.7 %3.5 % Non-GAAP Gross Margin 50.5 %54.7 % GAAP Net income (loss) $ (37,320)$ (47,177) Stock-based compensation 8,7758,016 Amortization of intangible assets 22,79526,297 Litigation costs 3,1142,719 Acquisition-, disposal- and integration-related 3,898- Restructuring and related 6,6874,985 Preferred stock and warrant liability mark-to-market adjustment (1,641)11,709 Tax effect of non-GAAP adjustments (1,278)876 Non-GAAP Net income (loss) $ 5,030$ 7,425 GAAP Diluted earnings (loss) per share $ (0.21)$ (0.27) Stock-based compensation 0.050.05 Amortization of intangible assets 0.130.14 Litigation costs 0.020.02 Acquisition-, disposal- and integration-related 0.02- Restructuring and related 0.040.03 Preferred stock and warrant liability mark-to-market adjustment (0.01)0.07 Tax effect of non-GAAP adjustments (0.01) * Non-GAAP Diluted earnings (loss) per share $ 0.03$ 0.04 Weighted average shares used to compute diluted earnings (loss) per share Shares used to compute GAAP diluted earnings (loss) per share 176,237173,110 Shares used to compute Non-GAAP diluted earnings (loss) per share 180,231175,784 GAAP Income (loss) from operations $ (15,384)$ (15,421) Depreciation 7,7576,770 Stock-based compensation 8,7758,016 Amortization of intangible assets 22,79526,297 Litigation costs 3,1142,719 Acquisition-, disposal- and integration-related 3,898- Restructuring and related 6,6874,985 Non-GAAP Adjusted EBITDA $ 37,642$ 33,366 * Less than $0.01 impact on earnings (loss) per share. RIBBON COMMUNICATIONS INC. Reconciliation of Non-GAAP and GAAP Financial Measures (in thousands) (unaudited)Trailing Twelve MonthsJune 30,March 31,June 30,202520252024 GAAP Income (loss) from operations $ 16,909$ 10,748$ 2,105 Depreciation 14,52613,61413,816 Stock-based compensation 16,84515,86217,858 Amortization of intangible assets 47,36049,14853,836 Litigation costs 11,59311,0473,735 Acquisition-, disposal- and integration-related 3,898-2,336 Restructuring and related 11,86212,4369,950 Non-GAAP Adjusted EBITDA $ 122,993$ 112,855$ 103,636 RIBBON COMMUNICATIONS INC. Reconciliation of Non-GAAP and GAAP Financial Measures - Outlook (unaudited) Three months ending Year ending September 30, 2025December 31, 2025Midpoint (1) RangeMidpoint (1)RangeRevenue ($ millions) $ 220 +/- $7M$ 880+/- $10MGross margin:GAAP outlook 51.25 % 52.0 %Stock-based compensation 0.20 % 0.2 %Amortization of acquired technology 2.30 % 2.3 % Non-GAAP outlook 53.75 % +/- 0.25%54.5 %+/- 0.5%Adjusted EBITDA ($ millions):GAAP income (loss) from operations $ 10.8 $ 42.3Depreciation 3.9 15.8Stock-based compensation 4.0 16.2Amortization of intangible assets 10.8 44.1Litigation costs 0.3 3.7Acquisition-, disposal- and integration-related - 3.9Restructuring and related 1.2 9.0 Non-GAAP outlook $ 31.0 +/- $3M$ 135.0+/- $5M(1) Q3 2025 and FY 2025 outlook represents the midpoint of the expected ranges View original content to download multimedia: SOURCE Ribbon Communications Inc. 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