EX-99.2 3 ex9922025q1earningsprese.htm EX-99.2
© Ciena Corporation 2025. All rights reserved. Proprietary Information. Ciena Corporation Fiscal Q1 2025 Earnings Presentation Period ended February 1, 2025 March 11, 2025

© Ciena Corporation 2025. All rights reserved. Proprietary Information.2 Forward-looking statements and non-GAAP measures You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission (SEC) filings, recent news, financial results, supplemental financial information, and other announcements. From time to time, we exclusively post material information to this website along with other disclosure channels that we use. You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission ("SEC") filings, recent news, financial results, supplemental financial information, and other announcements. From time to time we exclusively post material information to this website along with other disclosure channels that we use. Information in this presentation and related comments of presenters contains certain forward- looking statements that involve risks and uncertainties. These statements are based on current expectations, forecasts, assumptions and other information available to the Company as of the date hereof. Forward-looking statements include statements regarding Ciena's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. Ciena's actual results, performance or events may differ materially from these forward-looking statements made or implied due to a number of risks and uncertainties relating to Ciena's business, including: the effect of broader economic and market conditions on our customers, their spending and their businesses and markets; our ability to execute our business and growth strategies; the impact of macroeconomic conditions; the impact of the introduction of new technologies by us or our competitors; seasonality and the timing and size of customer orders, their delivery dates and our ability to recognize revenue relating to such sales; the level of competitive pressure we encounter; the product, customer and geographic mix of sales within the period; changes in foreign currency exchange rates; factors beyond our control such as natural disasters, climate change, acts of war or terrorism, geopolitical tensions or events, including but not limited to the ongoing conflicts between Ukraine and Russia, and Israel and groups based in the surrounding region, and public health emergencies, epidemics, or pandemics, such as the COVID-19 pandemic; changes in tax or trade regulations, including the imposition of tariffs, duties or efforts to withdraw from or materially modify international trade agreements; cyberattacks, data breaches or other security incidents involving our enterprise network environment or our products; regulatory changes, litigation involving our intellectual property or government investigations; and the other risk factors disclosed in Ciena’s periodic reports filed with the Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K filed with the SEC on December 20, 2024 and included in its Quarterly Report on Form 10-Q for the first quarter of fiscal 2025 to be filed with the SEC. All information, statements, and projections in this presentation and the related earnings call speak only as of the date of this presentation and related earnings call. Ciena assumes no obligation to update any forward-looking or other information included in this presentation or related earnings calls, whether as a result of new information, future events or otherwise. In addition, this presentation includes historical, and may include prospective, non-GAAP measures of Ciena’s gross margin, operating expense, operating margin, EBITDA, and net income per share. These measures are not intended to be a substitute for financial information presented in accordance with GAAP. A reconciliation of non-GAAP measures used in this presentation to Ciena’s GAAP results for the relevant period can be found in the Appendix to this presentation. Additional information can also be found in our press release filed this morning and in our reports on Form 10-Q and Form 10K filed with the Securities and Exchange Commission.

© Ciena Corporation 2025. All rights reserved. Proprietary Information.3 Table of Contents 1. Overview and Ciena's portfolio 2. Industry context and addressable market expansion 3. Ciena is positioned for accelerated growth 4. Fiscal Q1 2025 financial performance 5. Appendix

© Ciena Corporation 2025. All rights reserved. Proprietary Information. Overview and Ciena's portfolio

© Ciena Corporation 2025. All rights reserved. Proprietary Information.5 Ciena is the global leader in high-speed connectivity Ciena provides networking systems, services, and software We build the most adaptive networks in the industry, enabling customers to anticipate and meet ever-increasing digital demands. Prioritizing collaborative relationships with our customers, partners, and communities, we create flexible, open, and sustainable networks that better serve all users — today and into the future.

© Ciena Corporation 2025. All rights reserved. Proprietary Information.6 Evolving our customers’ business with the Adaptive Network

© Ciena Corporation 2025. All rights reserved. Proprietary Information.7 Our strategy leverages our Optical technology to create expanded addressable market opportunities

© Ciena Corporation 2025. All rights reserved. Proprietary Information. Industry context and addressable market expansion

© Ciena Corporation 2025. All rights reserved. Proprietary Information.9 Increasing bandwidth consumption as a driver of network expansion

© Ciena Corporation 2025. All rights reserved. Proprietary Information.10 Our core business is enabling investment in higher-growth markets 1Sources: Dell'Oro, CignalAI, LightCounting, and Ciena internal analysis.

© Ciena Corporation 2025. All rights reserved. Proprietary Information.11 An industry leader #1 Globally • Data center interconnect • Optical for internet content provider customers #1 N. America • Data center interconnect • Total optical networking • Optical packet Optical Transport Report, 4Q24 #1 Globally • Purpose-built/compact modular DCI • SLTE WDM • Access switching #1 N. America • Total optical networking • Purpose-built/compact modular DCI • Access switching Optical Networking Report, 3Q24 Service Provider Switching & Routing Report, 3Q24 #1 Globally • Purpose-built/compact modular DCI • Optical for cloud and colo • SLTE WDM #1 N. America • Total optical networking • Optical for cloud and colo • Routing/Access Transport Hardware Report, 4Q24

© Ciena Corporation 2025. All rights reserved. Proprietary Information. Ciena is positioned for accelerated growth

© Ciena Corporation 2025. All rights reserved. Proprietary Information.13 Our future growth opportunity Long-term growth in core business plus new addressable markets provide an opportunity to outpace our traditional revenue CAGR over time

© Ciena Corporation 2025. All rights reserved. Proprietary Information.14 Our portfolio addresses key network applications

© Ciena Corporation 2025. All rights reserved. Proprietary Information.15 We expect coherent technology will have growing application in the AI era

© Ciena Corporation 2025. All rights reserved. Proprietary Information. Q1 FY 2025 results

© Ciena Corporation 2025. All rights reserved. Proprietary Information.17 Q1 FY 2025 key highlights ▪ Service Provider revenue grew 14% YoY ▪ Non-telco represented 49% of total revenue ▪ Government, R&E, and Enterprise revenue grew 10% YoY ▪ APAC revenue grew 6% YoY ▪ Blue Planet revenue grew 87% YoY • Added 20 new WL6e customers in the quarter bringing total customers shipped to 25 • Awarded half a dozen new submarine wins in the quarter, including large 100Tb subsea upgrade • Awarded numerous MOFN opportunities globally, strengthening our position as leading optical vendor for AI networks. • Released two new SAOS 10 based weatherproof routers to expand and deliver applications in the most challenging outdoor environments ▪ Expanded the breath of our Broadband portfolio by introducing the two new XGS- PON optical network units (ONUs) • Total shareholder return five-year CAGR of 16%1 • Repurchased ~1.0 million shares for $79.2 million under our three-year program (FY25-27) 1 Based on closing share price between 2/17/2020 to 2/17/2025 Achieving balanced growth Prioritizing long term shareholder value Driving the pace of innovation

© Ciena Corporation 2025. All rights reserved. Proprietary Information.18 Q1 FY 2025 comparative financial highlights * Reconciliations of these non-GAAP measures to our GAAP results are included in the Appendix and in the press release for the relative period. Q1 FY 2025 Q1 FY 2024 Revenue $1,072.3M $1,037.7M Adjusted Gross Margin* 44.7% 45.7% Adjusted Operating Expense* $347.4M $336.8M Adjusted Operating Margin* 12.3% 13.2% Adjusted EBITDA* $156.5M $160.0M Adjusted EPS* $0.64 $0.66

© Ciena Corporation 2025. All rights reserved. Proprietary Information.19 Q1 FY 2025 comparative operating metrics Q1 FY 2025 Q1 FY 2024 Cash and investments $1.32B $1.48B Cash provided by operations $104M $266M DSO 90.0 88.0 Inventory Turns 2.3 1.9 Gross Leverage 3.35x 2.42x Net Debt $283M $148M

© Ciena Corporation 2025. All rights reserved. Proprietary Information.20 Revenue by segment (Amounts in millions) Q1 FY 2025 Q1 FY 2024 Revenue %** Revenue %** Networking Platforms Optical Networking $728.0 67.9 $695.8 67.1 Routing and Switching 93.2 8.7 111.4 10.7 Total Networking Platforms 821.2 76.6 807.2 77.8 Platform Software and Services 95.1 8.9 89.7 8.6 Blue Planet Automation Software and Services 26.0 2.4 14.0 1.4 Global Services Maintenance Support and Training 74.6 7.0 74.1 7.1 Installation and Deployment 47.7 4.4 42.7 4.1 Consulting and Network Design 7.7 0.7 10.0 1.0 Total Global Services 130.0 12.1 126.8 12.2 Total $1,072.3 100.0 $1,037.7 100.0 * Reconciliations of these non-GAAP measures to GAAP results are included in the appendix to this presentation. ** Denotes % of total revenue

© Ciena Corporation 2025. All rights reserved. Proprietary Information.21 Revenue derived from non-telco customers

© Ciena Corporation 2025. All rights reserved. Proprietary Information.22 Revenue by geographic region 10.8% 10.1% 10.8% 20.0% 17.1% 13.4% 69.2% 72.8% 76.3% 75.8% 14.3% 9.4% 11.1% 14.7% 74.2%

© Ciena Corporation 2025. All rights reserved. Proprietary Information. Q1 FY 2025 appendix

© Ciena Corporation 2025. All rights reserved. Proprietary Information.24 Q1 FY 2025 Q4 FY 2024 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 GAAP gross profit $471,821 $460,022 $403,945 $388,661 $466,962 Share-based compensation-products 1,750 1,736 1,660 1,760 1,318 Share-based compensation-services 3,405 3,257 3,122 3,344 3,020 Amortization of intangible assets 2,233 2,764 2,764 2,763 2,764 Total adjustments related to gross profit 7,388 7,757 7,546 7,867 7,102 Adjusted (non-GAAP) gross profit $479,209 $467,779 $411,491 $396,528 $474,064 Adjusted (non-GAAP) gross profit percentage 44.7 % 41.6 % 43.7 % 43.5 % 45.7 % Gross Profit Reconciliation (Amounts in thousands)

© Ciena Corporation 2025. All rights reserved. Proprietary Information.25 Q1 FY 2025 Q4 FY 2024 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 GAAP operating expense $391,158 $400,812 $377,202 $392,626 $382,333 Share-based compensation-research and development 14,237 14,065 13,118 14,066 12,880 Share-based compensation-sales and marketing 11,597 11,168 10,315 11,166 10,305 Share-based compensation-general and administrative 9,827 10,842 9,257 9,875 10,079 Significant asset impairments and restructuring costs 1,544 2,605 1,361 15,655 4,971 Amortization of intangible assets 6,545 7,185 7,185 7,947 7,252 Total adjustments related to operating expense 43,750 45,865 41,236 58,709 45,487 Adjusted (non-GAAP) operating expense $347,408 $354,947 $335,966 $333,917 $336,846 Q1 FY 2025 Q4 FY 2024 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 GAAP income (loss) from operations $80,663 $59,210 $26,743 $(3,965) $84,629 Total adjustments related to gross profit 7,388 7,757 7,546 7,867 7,102 Total adjustments related to operating expense 43,750 45,865 41,236 58,709 45,487 Total adjustments related to income from operations 51,138 53,622 48,782 66,576 52,589 Adjusted (non-GAAP) income from operations $131,801 $112,832 $75,525 $62,611 $137,218 Adjusted (non-GAAP) operating margin percentage 12.3 % 10.0 % 8.0 % 6.8 % 13.2 % Operating Expense Reconciliation (Amounts in thousands) Income (Loss) from Operations Reconciliation (Amounts in thousands)

© Ciena Corporation 2025. All rights reserved. Proprietary Information.26 Q1 FY 2025 Q4 FY 2024 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 GAAP net income (loss) $44,572 $37,028 $14,230 $(16,849) $49,547 Exclude GAAP provision for income taxes 24,022 10,993 2,125 820 21,956 Income (loss) before income taxes 68,594 48,021 16,355 (16,029) 71,503 Total adjustments related to income from operations 51,138 53,622 48,782 66,576 52,589 Loss on extinguishment and modification of debt 729 — — — — Adjusted income before income taxes 120,461 101,643 65,137 50,547 124,092 Non-GAAP tax provision on adjusted income before income taxes 26,501 22,361 14,330 11,120 27,300 Adjusted (non-GAAP) net income $93,960 $79,282 $50,807 $39,427 $96,792 Weighted average basic common shares outstanding 142,880 144,240 144,394 144,914 145,291 Weighted average diluted potential common shares outstanding(1) 145,944 146,487 145,361 146,268 145,848 Q1 FY 2025 Q4 FY 2024 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 GAAP diluted net income (loss) per potential common share $ 0.31 $ 0.25 $ 0.10 $ (0.12) $ 0.34 Adjusted (non-GAAP) diluted net income per potential common share $ 0.64 $ 0.54 $ 0.35 $ 0.27 $ 0.66 1. Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share for the first quarter of fiscal 2025 includes 3.1 million shares underlying certain stock option and stock unit awards. Net Income (Loss) Reconciliation (Amounts in thousands) Net Income (Loss) per Common Share

© Ciena Corporation 2025. All rights reserved. Proprietary Information.27 Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) Q1 FY 2025 Q4 FY 2024 Q3 FY 2024 Q2 FY 2024 Q1 FY 2024 Net income (loss) (GAAP) $44,572 $37,028 $14,230 $(16,849) $49,547 Add: Interest expense 22,918 24,990 24,401 23,861 23,776 Less: Interest and other income, net 11,578 13,801 14,013 11,797 10,650 Add: Loss on extinguishment and modification of debt 729 — — — — Add: Provision for income taxes 24,022 10,993 2,125 820 21,956 Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements 24,679 23,849 22,981 23,208 22,808 Add: Amortization of intangible assets 8,778 9,949 9,949 10,710 10,016 EBITDA $114,120 $93,008 $59,673 $29,953 $117,453 Add: Share-based compensation expense 40,816 41,068 37,472 40,211 37,602 Add: Significant asset impairments and restructuring expense 1,544 2,605 1,361 15,655 4,971 Adjusted EBITDA $156,480 $136,681 $98,506 $85,819 $160,026 Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) (Amounts in thousands)