Calix, Inc

Hello, and welcome to the Calix fourth quarter 2021 earnings 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, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Tom Vignes. Please go ahead.

Thank you, operator, and good morning, everyone. Thank you for joining our fourth quarter 2021 earnings call. Today on the call, we have Chairman and CEO Carl Rousseau, Chief Financial Officer Corey Fidelar, and President and Chief Operating Officer Michael Whedon. As a reminder, yesterday after the close of market, we released our letter to stockholders in an AK filing, as well as on the investor relations section of the Calix website. This conference call will be available for audio replay in the investor relations section of the Calix website. Before I turn the call over to Carl for his brief opening remark, I want to remind you that in this call, we refer to forward-looking statements, which include all statements we make about our future financial and operating performance, growth strategy, and market outlook. And actual results may differ materially from those contemplated by those forward-looking statements. Factors that can cause actual results and trends to differ materially are set forth in our fourth quarter 2021 letter to stockholders and in our annual and quarterly reports filed with the SEC. CALEC assumes no obligation to update any forward-looking statements which speak only as of their respective date. Also on this conference call, we will discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP and non-GAAP measures is included in our letter to stockholders. Unless otherwise stated, on this call, we will reference non-GAAP measures. With that, let me turn it over to Carl. Carl? Thanks, Tom. The CALEC team executed with excellence in the fourth quarter. just as they have for the entire year. The supply chain team continued to enable our customers to meet their subscriber demand, and that resulted in Calix achieving our second consecutive year of greater than 25% revenue growth. With bookings for our all platform offerings again strong in the quarter, we see the historical seasonality of our business changing. This is clearly evident in our revenue guidance for the first quarter. For the first time in the company's history, we see revenue sequentially up from the fourth quarter. Even though we provide the associated systems, our customer interactions are driven by our platforms, which has dramatically smoothed our order flow. As a further indication, 2021 marked the first time in our history when we did not have a single 10% customer on an annual basis. We expect this trend to a more linear revenue model to continue. More importantly, even as the pandemic slows and economies around the world get back to work, demand for our platforms continues to steepen. It is clear we are perfectly positioned in front of an enormous secular opportunity, and we intend to continue to execute our strategy and capture it. One example of this execution was the addition of 26 new customers in the quarter which brought the total for the year to 131, marking a multi-year high. This speaks directly to our focus on helping innovative broadband service providers who have adopted our platforms to succeed. While supply constraints will persist at least through 2022, we have a high-performing team that is up for the challenge. Our focus strategy is also helping us attract talented people who are on the same mission as us, to help our customers simplify their businesses, excite their subscribers, and grow their value. We look forward to seeing you next month at our Investor Day on Wednesday, the 23rd of February. With that, let's open the call for questions. Operator?

Thank you. And I'll be conducting a question and answer session. If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star 1. One moment, please, while we poll for questions. Our first question today is coming from George Notter from Jefferies. Your line is now live.