Calix, Inc

Greetings and welcome to the Calix first quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. The 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. It is now my pleasure to introduce your host, Nancy Faziole, VP of Investor Relations. Thank you, Nancy. You may begin.

Thank you, Daryl, and good morning, everyone. Thank you for joining our first quarter 2025 earnings call. Today on the call, we have President and CEO, Michael Weaning, and Chief Financial Officer, Corey Sindelar. As a reminder, yesterday after the market closed, Calus issued a news release, which was furnished on a Form 8K, along with our stockholder letter. It was also posted in the investor relations section of the Calus 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 that 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 that 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 2025 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 date. 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 2025 letter to stockholders. Unless otherwise stated, all financial information referenced in this call will be non-GAAP. With that, Michael, please go ahead.

Thank you, Nancy. As I stated throughout 2024, and will reiterate as we step into 2025, the industry is at a crossroads. A broadband provider must decide if to remain a speed-based network operator that risks commoditization or embrace differentiation through broadband experiences across residential, business, and municipal within the communities they serve. The first quarter of 2025 showcased the strength of our experience-based broadband business, driven by our unique appliance-based platform, cloud, and managed services model, and industry-leading customer success team. A great example of this is Windstream's Kinetic Business, as they launched our small business solution, SmartBiz, to differentiate and win across 18 states. At the same time, our platform continued to expand beyond the consumer and small business segments as we added a new segment, multi-dwelling units, with the February release of SmartMDU. That said, as you are all aware, it seems yet again we face a dynamic environment and yet again our unique business model will ensure that Calix and our customers thrive during this time of uncertainty. Our platform enables broadband experience providers, customers, to simplify operations in their go-to-market, innovate with unique market differentiating experiences, and grow for their investors, members, and the communities they serve. The dynamic environment will be defined by three components, demand, supply, and cost. While Dumbbox providers will look at demand as a function of capital expenditure, I will reiterate that our business model is different. We partner with our customers to leverage our platform to create demand by enabling their sales and marketing teams to reduce churn, grow revenue per subscriber, and attract new subscribers. As we look forward through 2025, we will see growing demand, and the dynamic environment will not change that. Consumers and businesses have a growing need for broadband experiences, and Calix will help our customers meet that demand. Furthermore, subscriber demand for broadband is inelastic. As we saw in Netflix earnings last week, which they blew out and forecasted a great future, when end consumers are uncertain, they cut out disposable income items such as taking a flight or eating at a restaurant and stay home and watch a movie. If they're a hybrid worker, they will try to travel to the office less and work at home more. In each of these scenarios, broadband becomes more important and the broadband provider with the best experience wins. In summation, demand is strong and will continue to grow through 2025. Corey, please cover supply and costs before sharing insights on our outstanding Q1 and a view on a strong Q2.