Harmonic Inc. · NASDAQ:HLIT

Harmonic — Q2 2021 Earnings Presentation

28 slides from Harmonic's earnings presentation, Aug 2, 2021

  1. Slide 1: Second Quarter 2021 Earnings Conference Call

    SECOND QUARTER 2021 EARNINGS CONFERENCE CALL Patrick Harshman, President & CEO Sanjay Kalra, CFO August 2, 2021 ©2021 Harmonic Inc. All rights reserved worldwide. 1

  2. Slide 2: Forward-Looking Statements

    FORWARD-LOOKING STATEMENTS During the course of this presentation, we will provide projections and other forward-looking statements regarding future events or the future financial performance of Harmonic, including expectations concerning our business strategy for 2021 and beyond, and our Q3, Q4 and

  3. Slide 3: Q2 2021 Highlights

    Q2 2021 HIGHLIGHTS Corporate Cable Access Video Revenue up 53% yoy; Revenue up 89% yoy; Revenue up 34% yoy; Record Q2 Bookings New Tier 1 Wins SaaS Revenue up 68% Strong Market Momentum + Record Backlog ©2021 Harmonic Inc. All rights reserved worldwide. 3

  4. Slide 4: Cable Access Segment Update

    CABLE ACCESS SEGMENT UPDATE STRONG Q2 • Revenue $50.1 million, up 89% year over year • Commercially deployed with 62 operators, up 114% year over year • 3.3 million cable modems served, up 94% year over year EXECUTING MULTI-YEAR STRATEGY • Two Tier 1 customer wins, more in sales pipeline • Growing p

  5. Slide 5: Video Segment Update

    VIDEO SEGMENT UPDATE STRONG Q2 • Revenue $63.3 million, up 34% year over year • Gross margin 59.3%, up 450 basis points year over year • SaaS revenue up 68% year over year EXECUTING MULTI-YEAR STRATEGY • Streaming SaaS customer base increased to 102, up 55% year over year • Growing demand for new br

  6. Slide 6: Financial Results and Outlook

    FINANCIAL RESULTS AND OUTLOOK Sanjay Kalra, CFO ©2021 Harmonic Inc. All rights reserved worldwide. 6

  7. Slide 7: Q2 2021 Financial Highlights

    Q2 2021 FINANCIAL HIGHLIGHTS SOLID FINANCIAL RESULTS* • Revenue of $113.4 million, up 53.2% year over year • Gross Margin of 53.9%, up 230 basis points year over year • Adj. EBITDA of $9.5 million, up 439% year over year • Non-GAAP EPS of $0.05, up 183% year over year • Record Backlog and Deferred R

  8. Slide 8: Q2 2021 Revenue & Gross Margin Highlights

    Q2 2021 REVENUE & GROSS MARGIN HIGHLIGHTS* Financial Metric Q2 Q1 Q2 Q2/Q1 Q2 Y/Y ($ Millions) 2021 2021 2020 Change Change Total Net Revenue $113.4 $111.6 $74.0 1.6% 53.2% Cable Access Revenue $50.1 $41.3 $26.5 21.3% 89.1% Video Revenue $63.3 $70.3 $47.5 (10.0)% 33.5% Gross Margin % 53.9% 50.4% 51.

  9. Slide 9: Q2 2021 Earnings and Bookings Highlights

    Q2 2021 EARNINGS AND BOOKINGS HIGHLIGHTS* Financial Metric Q2 Q1 Q2 Q2/Q1 Q2 Y/Y $ Millions (except EPS) 2021 2021 2020 Change Change Operating Expenses $54.6 $51.1 $43.3 6.8% 26.1% Adj. EBITDA $9.5 $9.1 $(2.8) 4.4% 439.3% Cable Access Adj. EBITDA $6.1 $3.0 $0.0 103.3% NM** Video Adj. EBITDA $3.4 $6

  10. Slide 10: Q2 2021 Balance Sheet & Cash Flow Highlights

    Q2 2021 BALANCE SHEET & CASH FLOW HIGHLIGHTS Financial Metric Q2 Q1 Q2 ($ Millions) 2021 2021 2020 Cash $115.2 $100.8 $77.7 Cash Provided by (Used in) Operations $16.8 $1.7 $11.9 Accounts Receivable $100.6 $85.7 $74.8 DSO 80 69 91 Inventory $43.0 $35.5 $32.1 Inventory Days 74 58 81 Backlog and Defer

  11. Slide 11: 2021 Financial Guidance: Cable Segment

    2021 FINANCIAL GUIDANCE* CABLE SEGMENT FY Updated FY Prior FY Midpoint Financial Metric Q3 Guidance Q4 Guidance Guidance Guidance Difference Net Revenue ($M) $50.0 - $55.0 $50.0 - $60.0 $192.0 - $207.0 $175.0 - $200.0 $12.0 Gross Margin %** 41.5% - 43.5% 45.0% - 47.0% 44.0% - 45.0% 44.0% - 45.0% - G

  12. Slide 12: 2021 Financial Guidance: Video Segment

    2021 FINANCIAL GUIDANCE* VIDEO SEGMENT FY Updated FY Prior FY Midpoint Financial Metric Q3 Guidance Q4 Guidance Guidance Guidance Difference Net Revenue ($M) $62.0 - $67.0 $82.0 - $87.0 $278.0 - $288.0 $260.0 - $280.0 $13.0 Gross Margin % 55.0% - 58.0% 54.0% - 56.0% 55.5% - 57.0% 55.0% - 57.0% 25 bp

  13. Slide 13: 2021 Financial Guidance: Total Company

    2021 FINANCIAL GUIDANCE* TOTAL COMPANY FY Updated FY Prior FY Midpoint Financial Metric Q3 Guidance Q4 Guidance Guidance Guidance Difference Net Revenue ($M) $112.0 - $122.0 $133.0 - $148.0 $470.0 - $495.0 $435.0 - $480.0 $25.0 Gross Margin % 49.9% - 50.6% 50.8% - 51.5% 51.2% - 51.6% 50.6% - 52.0% 8

  14. Slide 14: 2021 Strategic Priorities

    2021 STRATEGIC PRIORITIES Cable Access Video Grow Tier 1 CableOS deployments Expand Streaming SaaS customer base Add new CableOS design wins Capitalize on broadcast transformations Expand addressed market through FTTH Grow revenue and operating profit Create value. Deliver industry-leading solutions

  15. Slide 15: Q&A

    Q&A ©2021 Harmonic Inc. All rights reserved worldwide. 15

  16. Slide 16: Use of Non-GAAP Financial Measures

    USE OF NON-GAAP FINANCIAL MEASURES In establishing operating budgets, managing its business performance, and setting internal measurement targets, the Company excludes a number of items required by GAAP. Management believes that these accounting charges and credits, most of which are non-cash or non

  17. Slide 17: Q2 2021 GAAP to Non-GAAP Reconciliations

    Q2 2021 GAAP TO NON-GAAP RECONCILIATIONS (IN THOUSANDS, EXCEPT EPS AND PERCENTAGES) ©2021 Harmonic Inc. All rights reserved worldwide. 17

  18. Slide 18: Q1 2021 GAAP to Non-GAAP Reconciliations

    Q1 2021 GAAP TO NON-GAAP RECONCILIATIONS (IN THOUSANDS, EXCEPT EPS AND PERCENTAGES) ©2021 Harmonic Inc. All rights reserved worldwide. 18

  19. Slide 19: Q2 2020 GAAP to Non-GAAP Reconciliations

    Q2 2020 GAAP TO NON-GAAP RECONCILIATIONS (IN THOUSANDS, EXCEPT EPS AND PERCENTAGES) ©2021 Harmonic Inc. All rights reserved worldwide. 19

  20. Slide 20: YTD Q2 2021 GAAP to Non-GAAP Reconciliations

    YTD Q2 2021 GAAP TO NON-GAAP RECONCILIATIONS (IN THOUSANDS, EXCEPT EPS AND PERCENTAGES) ©2021 Harmonic Inc. All rights reserved worldwide. 20

  21. Slide 21: YTD Q2 2020 GAAP to Non-GAAP Reconciliations

    YTD Q2 2020 GAAP TO NON-GAAP RECONCILIATIONS (IN THOUSANDS, EXCEPT EPS AND PERCENTAGES) ©2021 Harmonic Inc. All rights reserved worldwide. 21

  22. Slide 22: Adj. EBITDA Reconciliations

    ADJ. EBITDA RECONCILIATIONS (IN THOUSANDS) ©2021 Harmonic Inc. All rights reserved worldwide. 22

  23. Slide 23: Adj. EBITDA Reconciliations

    ADJ. EBITDA RECONCILIATIONS (IN THOUSANDS) ©2021 Harmonic Inc. All rights reserved worldwide. 23

  24. Slide 24: Q3 2021 Guidance GAAP to Non-GAAP Reconciliations

    Q3 2021 GUIDANCE GAAP TO NON-GAAP RECONCILIATIONS (IN MILLIONS, EXCEPT EPS AND PERCENTAGES) ©2021 Harmonic Inc. All rights reserved worldwide. 24

  25. Slide 25: Q4 2021 Guidance GAAP to Non-GAAP Reconciliations

    Q4 2021 GUIDANCE GAAP TO NON-GAAP RECONCILIATIONS (IN MILLIONS, EXCEPT EPS AND PERCENTAGES) ©2021 Harmonic Inc. All rights reserved worldwide. 25

  26. Slide 26: 2021 Guidance GAAP to Non-GAAP Reconciliations

    2021 GUIDANCE GAAP TO NON-GAAP RECONCILIATIONS (IN MILLIONS, EXCEPT EPS AND PERCENTAGES) ©2021 Harmonic Inc. All rights reserved worldwide. 26

  27. Slide 27: 2021 Adj. EBITDA Guidance Reconciliations

    2021 ADJ. EBITDA GUIDANCE RECONCILIATIONS (IN THOUSANDS) ©2021 Harmonic Inc. All rights reserved worldwide. 27

  28. Slide 28: Thank You

    THANK YOU. ©2021 Harmonic Inc. All rights reserved worldwide. 28

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