Casa Systems, Inc.

Greetings and welcome to CASA Systems Q1 2021 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the call over to your conference host, Jackie Marcus, Investor Relations.

Thank you, Operator, and good afternoon, everyone. Casa Systems released results for the first quarter of 2021 and did March 31, 2021, this afternoon after the market closed. If you did not receive a copy of our earnings press release, you may obtain it from the Investor Relations section of our website at investors.casasystems.com. With me on today's call are Jerry Guo, Chief Executive Officer, and Scott Bruckner, Chief Financial Officer. This call is being webcasted and will be archived on the Investor Relations section of our website. Before I turn the call over to Jerry, I'd like to note that today's discussion will contain forward-looking statements based on the business environment as we currently see it, and as such, does include certain risks and uncertainties. Please refer to our press release and our SEC filing for more information on the specific risk factors that could cause our actual results to differ materially from the projections described in today's discussion. Any forward-looking statements that we make on this call or in the earnings release are based upon information that we believe as of today, and we undertake no obligation to update these statements as a result of new information or future events. In addition to U.S. GAAP reporting, we report certain financial measures that do not conform to generally accepted accounting principles. During the call, we may use non-GAAP measures if we believe it is useful to investors or we believe it will help investors better understand our performance or business trends. And with that, I'd like to turn the call over to Jerry. Jerry?

Good afternoon, everyone. Thank you for joining us today as we discuss the results of our first quarter of 2021. We have continued to execute according to plan and had another great quarter. I'd like to share some of the highlights from it with you. We delivered on our commitment to grow the business with a 25% year-over-year revenue growth while delivering significant profitability. This is one of the strongest growth increases we have experienced as a public company. 54% of the revenue in Q1 came from our wireless and fixed telco products. With three consecutive quarters of wireless and fixed telco making up over half of our revenue, I'd like to emphasize that we are a truly diversified company uniquely able to serve the needs of any broadband customer, whether it be wireless, fixed, cable, or enterprise. Among the market segments, wireless showed the strongest growth in Q1 with 80% year-over-year growth. The strength and the resilience of our cable business are demonstrated by the steady revenue and a growing number of MSLs adopting our virtual CCAP core and DAA solutions. We again made numerous customer advances with our strategic growth products. Here are the numbers for the quarter. 17 new purchase orders for our 4G and 5G wireless products, including packet cores, redo access network products, and CBRS and 5G fixed wireless access devices. five new purchase orders for our virtual router and fiber extension products, and six purchase orders for our cable distributed access and virtual CCAP core products. And finally, something that I'm very excited about, we have integrated our cloud-native 5G standalone core functions with two of the largest global hyperscale public cloud platforms, Amazon Elastic Kubernetes Service and Google Cloud Ansys. This significantly expands the way we can deploy our 5G standalone core to service provider customers, and now to enterprise customers as well, and enables our customers the additional capability to provision and deploy services and applications in a public cloud, or a combination of public and private clouds. Now on to our first quarter performance. During Q1, we had one of the strongest quarters ever as a public company in terms of growth and profitability. We delivered record wireless revenue growth, and we ended the quarter with a healthy backlog to support our growth for the remainder of the year. Total revenue for the first quarter was $104.3 million. a 25% year-over-year increase. And with our continued focus on our operating model and cost structure, we again delivered excellent profitability, $20.2 million in adjusted EBITDA. This is a 452% increase from the first quarter of 2020. Turning to our product areas, wireless revenue was $40.3 million, up 80%. from the first quarter of 2020. Wireless bookings during the quarter were also up strongly. So our wireless backlog now stands at $156 million. That's up by 427% year over year, and 63% sequentially after we shipped record number of wireless products. Finally, we added several new significant wireless customers during the quarter, And now we have 32 wireless customers globally across all our wireless product areas. That's an increase from the 28 wireless customers we had at the end of 2020. Turning now to our fixed telco segment. Fixed telco revenue in the first quarter was $16.5 million. We are seeing some quarter-to-quarter lumpiness in our fixed telco revenue. And this is largely due to both customer and product concentration. But we have addressed this in two ways. First, we have added new customers for our fiber extension products. And second, we've been increasingly successful in securing purchase orders for our virtual router products. In fact, in the past two quarters, we have seen eight purchase orders for our virtual BNG and multi-service routers. The results of this are evident in the increased fixed telco bookings and backlog that we saw in Q1. And finally, onto cable. Cable revenue in the first quarter was $47.5 million. That's up 10.5% year over year. This increase was driven by cable customers reinvesting in their existing network infrastructure, particularly software capacity licenses. to address network hotspots from continued increases in bandwidth demand and usage. Before turning the call over to Scott to discuss our financial results in detail, I would like to touch on a question that we are frequently asked. What's the impact on our business from RDOF and the Biden administration's proposed infrastructure plan? While it's still early for us to quantify, as a broadband infrastructure company, We believe the two programs will provide tailwinds for our business across all of our product lines that could be incremental to the traction we are currently forecasting in our business. We will have more to say about this as the year progresses. With that, I would like to ask Scott to discuss our financial performance in more detail. Scott?