Calix, Inc

Greetings and welcome everyone to the Calix first quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the brief prepared remarks. 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. It is now my pleasure to introduce your host, Jim Finucchi, Vice President of Investor Relations. Sir, please go ahead.

thank you paul and good morning everyone thank you for joining our first quarter 2023 earnings call today on the call we have president and ceo of michael beaning chief financial officer corey cindylar and chairman carl russo as a reminder yesterday after the market closed calix issued a news release which was furnished on a form 8k along with our stockholder letter which was also posted in the investor relations section of the calix website Today's conference call will be available for webcast replay in the investor relations section of our website. Before I turn the call over to Michael for his opening remarks, I want to remind everyone on this call, we will refer to forward-looking statements, including all statements the company will make about its future financial and operating performance, growth strategy, and market outlook. And actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause actual results and trends to differ materially are set forth in the first quarter 2023 letter to stockholders and in the annual and quarterly reports filed with the SEC. Calix assumes no obligation to update any forward-looking statements which speak only as of their respective dates. Also in this conference call, we will discuss both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in the first quarter 2023 measures. With that, it is my pleasure to turn the call over to Michael. Michael, please go ahead.

Thank you, Jim. As the Calix evolution continues, I want to start this call by sharing my view on why Calix is performing in a very different manner than the market in general. Three consecutive years of greater than 25% growth. And as Corey will share, raising annual guidance for 2023. Nine consecutive quarters of sequential growth. three consecutive quarters of gross margin expansion as supply headwinds abate, zero debt, and a pristine balance sheet which will see cash grow at an accelerated rate. These are clear indicators the Calix team is executing our strategy in a predictable and disciplined manner. More importantly, it is making it clear that Calix is alone in a new market. This new market is made up of broadband service providers who are building consolidated networks and efficient end-to-end operations that yield incredible margins. This new market has BSPs leveraging data and insights from our platform and clouds to build an entirely new business model where they are the center of the home, the center of business, and the center of the community through the power of our managed services that grow revenue and customer satisfaction to record levels. BSPs continue to add subscribers and grow their business in Q1 through the power of the Calix platform, clouds, and managed services. The land and expand nature of our business was on full display in Q1 as we landed 11 new BSPs and expanded platform adoption as 38 BSPs adopted one or both of the revenue edge and the intelligent access edge. This brings the total number of BSPs deploying our platforms to 988. In Q1, 21 BSPs adopted one or more of our clouds, bringing the total number of cloud customers to 865. And perhaps the most important evidence that this is a new market is the growth of BSPs deploying one or more of our eight managed services. In the first quarter, 41 BSPs began differentiating their offer by launching one or more of our managed services. This is the fastest pace in the last five quarters and brings the total number of BSPs of managed services to 334. On that note, I'll now hand it to Corey to stand on the Calix team's performance in Q1. Corey? Thank you, Michael.