Extreme Networks, Inc.

Good day. Thank you for standing by and welcome to Extreme Network's second quarter fiscal year 2025 financial results call. At this time, all participants on a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1-1 on your telephone. You will then hear an automatic message advising your hand is raised. Please note that today's conference is being recorded. I will now hand the conference over to your speaker host. Stan Kovler, please go ahead.

Thank you, Livia. Good morning and welcome to Extreme Network's second quarter fiscal year 2025 earnings conference call. I'm Stan Kovler, Senior Vice President of Corporate Development and Investor Relations. With me today are Extreme Network's President and CEO, Ed Myercord, and EVP and CFO, Kevin Rhodes. We just distributed a press release and filed an 8K detailing Extreme Network's financial results for the quarter. For your convenience, a copy of the press release, which includes our GAAP and non-GAAP reconciliations, is available in the Investor Relations section of our website at extremenetworks.com along with our earnings presentation. Today's call and our discussion may include certain forward-looking statements based on our current expectations about Xtreme's future business, financial, and operational results, growth expectations, and strategies. All financial disclosures made on this call will be on a non-GAAP basis unless stated otherwise. We caution you not to put undue reliance on these forward-looking statements as they involve risks and uncertainties that can cause actual results to differ materially from those anticipated by these statements. These risks are described in our risk factors in the 10-K report for the period ended June 30, 2024, and the 10-Q report for the period ended September 30, 2024, filed with the SEC. Any forward-looking statements made on this call reflect our analysis as of today, and we have no plans or duty to update them except as required by law. A reconciliation of our non-GAAP results can be found in the press release and financial presentation. Following our prepared remarks, we will take questions. And now I will turn the call over to Xtreme's president and CEO, Ed Myercord.

Thank you, Stan, and thank you all for joining us this morning. Our results in the second quarter were highlighted by a continued and broad-based recovery in the networking market. We grew revenues sequentially for the third quarter in a row, led by product revenues, and achieved our best quarter of product bookings in five quarters. Our competitive win rates continue to improve, especially with larger enterprise customers. In the quarter, 36 customers spent over a million dollars with Xtreme, up from 27 last quarter. We're seeing a promising recovery with larger customers, which is creating meaningful share gains across a variety of verticals, including healthcare, manufacturing, and higher ed. Our EMEA business grew significantly both sequentially and year-over-year. In the Americas, we continued our strong execution in the enterprise vertical. America's sequential growth was impacted by seasonality in the K-12 vertical. From what we see, we believe our customers love the simplicity and feature differentiation of our cloud networking platform. We're the only enterprise player that can deliver end-to-end networking solutions from the campus data center to the edge and across the wide area network from one cloud. In addition, our industry-leading enterprise campus fabric continues to be a significant factor in winning new deals because it offers zero-touch provisioning, provides the most resilience with sub-second convergence, significantly minimizing or eliminating downtime, and minimizes the potential blast radius of lateral cyber attacks on the network. Our competitors simply cannot match these features with their IP fabrics designed for data centers. This quarter, customers such as Munchen Clinic, the largest hospital network in Munich, Philadelphia International Airport, the city of Temple, Texas, invested in Xtreme Fabric for its ability to deliver seamless connectivity, reliability, and rapid recovery, ensuring uninterrupted operations across their high-demand environments. Our competitive displacement span a variety of verticals. We recently secured a multi-million dollar new logo win with the Pittsburgh Steelers to enhance their fan experience and optimize retail point-of-sale systems for greater stadium-wide efficiency. Taylor Wessing, a large law firm in EMEA with 28 offices, 1,200 employees, wanted to untangle themselves from the complex licensing structure of our largest competitor to simplify their operations. They chose Xtreme for the ease of use and scalability of Xtreme Cloud IQ and our industry-leading premier services. We're encouraged by the early traction of our newer commercial models. Bookings for our MSP pilot program have doubled quarter over quarter, and we currently have 37 MSP partners. These MSPs love the flexibility of the consumption-based billing program because it lowers their operational overhead and allows their own customers to scale at their own pace. This makes our offer sticky with upsell opportunities. We're also expanding our funnel with major customers with our private subscription-targeted large service providers. Last quarter, we secured several large global wins with long-term agreements that will drive high margin recurring revenue for Xtreme in the coming quarters. Xtreme Cloud Universal Zero Trust Network Access, uZTNA, is also gaining momentum. This SaaS solution integrates a mature network access control with zero trust remote application access. This quarter, a new aerospace customer upgraded their wired and wireless infrastructure with Xtreme and adopted uZTNA for enhanced security. They value the single policy engine and unified management of application and network access for both on-site and remote workers. Four years ago, we were the first in the industry to announce a universal platform for our unified wired and wireless portfolio. We combined the power of cloud management with next generation switches and access points that simplifies the deployment experience for customers, increases flexibility, and allows customers to gradually adopt new technologies or, change their desired use case by changing their OS or management system without a hardware upgrade. In December, we announced our vision for Xtreme Platform One, an innovative technology platform that integrates Xtreme's networking and security solutions by unifying all our applications into a single interface. The core of the platform includes AI models that will drive impactful advances in automation to the networking experience. We previewed the platform with several of our partners and customers and their response was overwhelmingly positive. They all highlighted the significant time savings their teams would experience by having everything integrated into a single platform powered by AI and with the support of our AI expert. Platform one will drive significant productivity gains for IT teams and network design, deployment, management, and commercial operations by reducing complex tasks from days to hours and hours to minutes. Shortly after our launch in December, CRN Magazine named Platform One one of the 10 hottest networking products of 2024. We have a lot of exciting plans to expand upon our Platform One story and capabilities, which we'll demonstrate at Connect, our annual user conference taking place in May in Paris, before it goes GA in our fiscal G1. We anticipate further market share gains and revenue growth for the full year and a better than seasonal third quarter. We expect this growth to be accompanied by increased margins and cash flow for the full year. And with that, I'd like to turn the call over to our CFO, Kevin Rhodes, to walk us through the results and guidance.