Technology
Harmonic Announces Fourth Quarter and Fiscal 2024 Results
Published
1 year agoon
By
Record total quarterly revenue, up 33% year over year, and record quarterly Adjusted EBITDA
Doubles previous stock repurchase program to $200 million
SAN JOSE, Calif., Feb. 10, 2025 /PRNewswire/ — Harmonic Inc. (NASDAQ: HLIT) today announced its unaudited results for the fourth quarter and fiscal year ended December 31, 2024.
“Harmonic achieved record quarterly total company revenue and Adjusted EBITDA, with both Broadband and Video revenue exceeding expectations,” said Nimrod Ben-Natan, president and chief executive officer of Harmonic. “The strong performance in Broadband demonstrates our ability to scale to our customers’ needs and our technology leadership has never been stronger, leaving us well-positioned to take advantage of expected long-term growth in broadband DOCSIS 4.0 and Fiber.”
“Our prudent 2025 Broadband revenue guidance reflects shifts in customer deployment timing as operators transition to Unified DOCSIS 4.0. These trends are industry-wide and we believe they are short-term in nature,” said Walter Jankovic, chief financial officer of Harmonic. “We remain confident in our long-term outlook and expect to resume above market growth in 2026 as adoption of DOCSIS 4.0 accelerates and cable capital spending returns to its long-term growth trajectory. Additionally, our board of directors has authorized a new three-year, $200 million share repurchase program, reflecting our confidence in the Company’s strong continued profitability and free cash flow generation. We intend to opportunistically repurchase our shares when we believe that our stock is undervalued relative to the strength of our business, thereby creating value for our long-term shareholders.”
Q4 Financial and Business Highlights
Financial
Revenue: $222.2 million, compared to $167.1 million in the prior year periodBroadband segment revenue: $171.0 million, compared to $115.2 million in the prior year periodVideo segment revenue: $51.1 million, compared to $51.9 million in the prior year periodGross margin: 56.1% for both GAAP and non-GAAP, compared to GAAP 49.0% and non-GAAP 49.3% in the prior year periodBroadband segment non-GAAP gross margin: 52.7% compared to 42.4% in the prior year periodVideo segment non-GAAP gross margin: 67.4% compared to 64.6% in the prior year periodOperating income: GAAP income $52.9 million and non-GAAP income $63.1 million, compared to GAAP income $9.6 million and non-GAAP income $18.9 million in the prior year periodNet income: GAAP net income $38.1 million and non-GAAP net income of $52.4 million, compared to GAAP net income $83.8 million and non-GAAP net income $14.7 million in the prior year periodNon-GAAP adjusted EBITDA: $71.8 million income compared to $21.7 million income in the prior year periodNet income per share: GAAP net income per share of $0.32 and non-GAAP net income per share of $0.45, compared to GAAP net income per share of $0.72 and non-GAAP net income per share of $0.13 in the prior year periodCash: $101.5 million, compared to $84.3 million in the prior year period
Business
Commercially deployed our cOS™ solution with 127 customers, serving 33.3 million cable modemsLargest installed base of DOCSIS 4.0 and now engaged with 10 Tier 1 operators on Unified DOCSIS 4.0Increased Q4 2024 rest-of-world Broadband sales by over 50% from prior quarter, and won five new customers including Blue Stream Fiber (USA) and IPKO (Europe)Formed exclusive technology collaboration with Sercomm to advance DOCSIS 4.0 unified technologiesVideo SaaS (VOS360) is now qualified on a fourth cloud platform with Akamai Cloud Computing; additionally, Akamai has selected Harmonic as the technology vendor for one of their video streaming services
Share Repurchase Program
Harmonic also announced today that its board of directors has terminated the Company’s existing stock repurchase program and authorized a new program under which the Company may repurchase up to $200 million of its outstanding shares of common stock through February 2028. The Company intends to fund the share repurchases from cash on hand and cash generated from operations. Repurchases under the program may be made from time to time through open market purchases and 10b5-1 trading plans, in accordance with applicable securities laws. The timing and amount of any repurchases will depend on a variety of factors, including the price of Harmonic’s common stock, business and market conditions, corporate regulatory requirements, strategic opportunities and other factors. The stock repurchase program does not commit Harmonic to acquire any particular amounts of its common stock, and the program may be amended, suspended or discontinued at any time at the Company’s discretion.
Select Financial Information
GAAP
Non-GAAP
Key Financial Results
Q4 2024
Q3 2024
Q4 2023
Q4 2024
Q3 2024
Q4 2023
(Unaudited, in millions, except per share data)
Net revenue
$ 222.2
$ 195.8
$ 167.1
*
*
*
Net income
$ 38.1
$ 21.7
$ 83.8
$ 52.4
$ 29.9
$ 14.7
Net income per share
$ 0.32
$ 0.19
$ 0.72
$ 0.45
$ 0.26
$ 0.13
Other Financial Information
Q4 2024
Q3 2024
Q4 2023
(Unaudited, in millions)
Adjusted EBITDA for the quarter (1)
$ 71.8
$ 43.4
$ 21.7
Bookings for the quarter
$ 150.0
$ 171.4
$ 196.5
Backlog and deferred revenue as of quarter end
$ 496.3
$ 584.7
$ 653.2
Cash and cash equivalents as of quarter end
$ 101.5
$ 58.2
$ 84.3
(1) Adjusted EBITDA is a Non-GAAP financial measure. Refer to “Preliminary Net Income to Consolidated Segment Adjusted EBITDA Reconciliation” below for a reconciliation to net income, the most comparable GAAP measure.
* Not applicable
Explanations regarding our use of non-GAAP financial measures and related definitions, and reconciliations of our GAAP and Non-GAAP measures, are provided in the sections below entitled “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations.”
Financial Guidance
Q1 2025 GAAP Financial Guidance
(Unaudited, in millions, except
percentages and per share data)
Low
High
Broadband
Video
Total
Broadband
Video
Total
Net revenue
$ 80
$ 40
$ 120
$ 90
$ 45
$ 135
Gross margin %
55.8 %
57.0 %
Gross profit
$ 67
$ 77
Tax rate
19 %
19 %
Net income (loss)
$ (6)
$ 1
Net income (loss) per share
$ (0.05)
$ 0.01
Shares (1)
117.4
118.5
(1) Diluted shares assumes stock price at $13.07 (Q4 2024 average price).
2025 GAAP Financial Guidance
(Unaudited, in millions, except
percentages and per share data)
Low
High
Broadband
Video
Total
Broadband
Video
Total
Net revenue
$ 400
$ 185
$ 585
$ 450
$ 195
$ 645
Gross margin %
54.5 %
57.1 %
Gross profit
$ 319
$ 368
Tax rate
19 %
19 %
Net income
$ 22
$ 53
Net income per share
$ 0.19
$ 0.45
Shares (1)
119.1
119.1
(1) Diluted shares assumes stock price at $13.07 (Q4 2024 average price).
Q1 2025 Non-GAAP Financial Guidance (1)
(Unaudited, in millions, except
percentages and per share data)
Low
High
Broadband
Video
Total
Broadband
Video
Total
Gross margin %
52.0 %
64.0 %
56.0 %
54.0 %
65.0 %
57.7 %
Gross profit
$ 42
$ 26
$ 68
$ 49
$ 29
$ 78
Adjusted EBITDA(2)
$ 9
$ —
$ 9
$ 15
$ 2
$ 17
Tax rate
20 %
20 %
Net income per share
$ 0.02
$ 0.08
Shares (3)
118.5
118.5
(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” below. Components may not sum to total due to rounding.
(2) Refer to “Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation on Financial Guidance” below for a reconciliation to net income (loss), the most comparable GAAP measure.
(3) Diluted shares assumes stock price at $13.07 (Q4 2024 average price).
2025 Non-GAAP Financial Guidance (1)
(Unaudited, in millions, except
percentages and per share data)
Low
High
Broadband
Video
Total
Broadband
Video
Total
Gross margin %
51.0 %
63.0 %
54.8 %
54.0 %
65.0 %
57.3 %
Gross profit
$ 204
$ 117
$ 321
$ 243
$ 127
$ 370
Adjusted EBITDA(2)
$ 77
$ 8
$ 85
$ 106
$ 17
$ 123
Tax rate
20 %
20 %
Net income per share
$ 0.43
$ 0.68
Shares (3)
119.1
119.1
(1) Refer to “Use of Non-GAAP Financial Measures” and “GAAP to Non-GAAP Reconciliations on Financial Guidance” below. Components may not sum to total due to rounding.
(2) Refer to “Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation on Financial Guidance” below for a reconciliation to net income (loss), the most comparable GAAP measure.
(3) Diluted shares assumes stock price at $13.07 (Q4 2024 average price).
Conference Call Information
Harmonic will host a conference call to discuss its financial results at 2:00 p.m. PT (5:00 p.m. ET) on Monday, February 10, 2025. The live webcast will be available on the Harmonic Investor Relations website at http://investor.harmonicinc.com. To participate via telephone, please register in advance using this link, https://register-conf.media-server.com/register/BI2f09f965b0ef4108b66aaee0197cd4f5. A replay will be available after 5:00 p.m. PT on the same website.
About Harmonic Inc.
Harmonic (NASDAQ: HLIT), the worldwide leader in virtualized broadband and video delivery solutions, enables media companies and service providers to deliver ultra-high-quality video streaming and broadcast services to consumers globally. The company revolutionized broadband networking via the industry’s first virtualized broadband solution, enabling operators to more flexibly deploy gigabit internet service to consumers’ homes and mobile devices. Whether simplifying OTT video delivery via innovative cloud and software platforms, or powering the delivery of gigabit internet services, Harmonic is changing the way media companies and service providers monetize live and on-demand content on every screen. More information is available at www.harmonicinc.com.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements related to our stock repurchase program and our expectations regarding net revenue, gross margins, operating expenses, operating income (loss), Adjusted EBITDA, tax expense and tax rate, and net income (loss) per diluted share. Our expectations regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected. These risks include, in no particular order, the following: stock repurchases may not be conducted in the timeframe or in the manner we expect, or at all; customer concentration and consolidation; loss of one or more key customers; delays or decreases in capital spending in the cable, satellite telco, broadcast and media industries; the possibility that our products will not generate sales that are commensurate with our expectations or that our cost of revenue or operating expenses may exceed our expectations; the market and technology trends underlying our Broadband and Video businesses will not continue to develop in their current direction or pace; the impact of general economic conditions on our sales and operations; the mix of products and services sold in various geographies and the effect it has on gross margins; our ability to develop new and enhanced products in a timely manner and market acceptance of our new or existing products; risks associated with our international operations; exchange rate fluctuations of the currencies in which we conduct business; risks associated with our cOS™ and VOS product solutions; dependence on various broadband and video industry trends; inventory management; the lack of timely availability or the impact of increases in the prices of parts or raw materials necessary to produce our products; the effect of competition, on both revenue and gross margins; difficulties associated with rapid technological changes in our markets; risks associated with unpredictable sales cycles; our dependence on contract manufacturers and sole or limited source suppliers; and the impact on our business of natural disasters. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Harmonic’s filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K for the year ended December 31, 2023, our most recent Quarterly Report on Form 10-Q and our Current Reports on Form 8-K. The forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Harmonic disclaims any obligation to update any forward-looking statements.
Use of Non-GAAP Financial Measures
The Company reports its financial results in accordance with accounting principles generally accepted in the United States (“GAAP” or referred to herein as “reported”). However, management believes that certain non-GAAP financial measures provide management and other users with additional meaningful financial information that should be considered when assessing our ongoing performance. Our management regularly uses our supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, establish operating budgets, set internal measurement targets and make operating decisions.
These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. The Company believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Harmonic’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Harmonic’s results of operations in conjunction with the corresponding GAAP measures.
The Company believes that the presentation of non-GAAP measures, when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations. Non-GAAP financial measures should be viewed in addition to, and not as an alternative to, the Company’s reported results prepared in accordance with GAAP.
The non-GAAP measures presented here are: Gross profit, operating expenses, income (loss) from operations, non-operating expenses and net income (loss), Adjusted EBITDA (including those amounts as a percentage of revenue) and net income (loss) per diluted share. The presentation of non-GAAP information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP, and is not necessarily comparable to non-GAAP results published by other companies. A reconciliation of the historical non-GAAP financial measures discussed in this press release to the most directly comparable historical GAAP financial measures is included with the financial statements provided with this press release. The non-GAAP adjustments described below have historically been excluded from our GAAP financial measures.
Our non-GAAP financial measures reflect adjustments based on the following items, as well as the related income tax effects:
Stock-based compensation – Although stock-based compensation is a key incentive offered to our employees, we continue to evaluate our business performance excluding stock-based compensation expenses. We believe that management is limited in its ability to project the impact stock-based compensation would have on our operating results. In addition, for comparability purposes, we believe it is useful to provide a non-GAAP financial measure that excludes stock-based compensation in order to better understand the long-term performance of our core business and to facilitate the comparison of our results to the results of our peer companies.
Restructuring and related charges – Harmonic from time to time incurs restructuring charges which primarily consist of employee severance, one-time termination benefits related to the reduction of its workforce, and other costs. These charges are associated with material business shifts. We exclude these items because we do not believe they are reflective of our ongoing long-term business and operating results.
Non-cash interest expense related to convertible notes – We record the amortization of issuance costs as non-cash interest expense. We believe that excluding these costs provides meaningful supplemental information regarding operational performance and liquidity, along with enhancing investors’ ability to view the Company’s results from management’s perspective. In addition, we believe excluding these costs from the non-GAAP measures facilitates comparisons to our historical operating results and comparisons to peer company operating results.
Discrete tax items and tax effect of non-GAAP adjustments – The income tax effect of non-GAAP adjustments relates to the tax effect of the adjustments that we incorporate into non-GAAP financial measures in order to provide a more meaningful measure of non-GAAP net income.
Depreciation – Depreciation expense, along with interest, tax and stock-based compensation expense, and restructuring charges, is excluded from Adjusted EBITDA because we do not believe depreciation and the other items relate to the ordinary course of our business or are reflective of our underlying business performance.
Non-recurring advisory fees – There were non-recurring costs that we excluded from non-GAAP results relating to professional accounting, tax and legal fees associated with strategic corporate initiatives.
Asset impairment and related charges- We exclude asset impairment and related charges due to the nature of such expenses being unusual and arising outside the ordinary course of continuing operations. These costs primarily consist of impairments of fixed assets, right-of-use assets and related leasehold improvements, and other unrecoverable facility costs due to the intended change in use of certain leased space.
Harmonic Inc.
Preliminary Condensed Consolidated Balance Sheets
(Unaudited, in thousands, except par value)
December 31, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$ 101,457
$ 84,269
Restricted cash
332
—
Accounts receivable, net
178,013
141,531
Inventories
64,004
83,982
Prepaid expenses and other current assets
22,270
20,950
Total current assets
366,076
330,732
Property and equipment, net
26,823
36,683
Operating lease right-of-use assets
12,411
20,817
Goodwill
236,876
239,150
Deferred income taxes
121,028
104,707
Other non-current assets
33,292
36,117
Total assets
$ 796,506
$ 768,206
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Convertible debt
$ —
$ 114,880
Current portion of long-term debt
2,194
—
Current portion of other borrowings
4,941
4,918
Accounts payable
35,250
38,562
Deferred revenue
47,069
46,217
Operating lease liabilities
5,675
6,793
Other current liabilities
72,440
61,024
Total current liabilities
167,569
272,394
Long-term debt
112,084
—
Other long-term borrowings
8,694
10,495
Operating lease liabilities, non-current
14,727
18,965
Other non-current liabilities
28,174
29,478
Total liabilities
331,248
331,332
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 shares authorized; no shares issued or outstanding
—
—
Common stock, $0.001 par value, 150,000 shares authorized; 116,735 and 112,407 shares
issued and outstanding at December 31, 2024 and December 31, 2023, respectively
117
112
Additional paid-in capital
2,432,733
2,405,043
Accumulated deficit
(1,953,495)
(1,962,575)
Accumulated other comprehensive loss
(14,097)
(5,706)
Total stockholders’ equity
465,258
436,874
Total liabilities and stockholders’ equity
$ 796,506
$ 768,206
Harmonic Inc.
Preliminary Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three Months Ended
Year Ended
December 31, 2024
December 31, 2023
December 31, 2024
December 31, 2023
Revenue:
Appliance and integration
$ 177,914
$ 125,197
$ 507,378
$ 435,878
SaaS and service
44,252
41,895
171,344
172,029
Total net revenue
222,166
167,092
678,722
607,907
Cost of revenue:
Appliance and integration
84,072
70,596
255,707
236,773
SaaS and service
13,443
14,629
57,094
58,589
Total cost of revenue
97,515
85,225
312,801
295,362
Total gross profit
124,651
81,867
365,921
312,545
Operating expenses:
Research and development
31,413
30,252
120,975
126,282
Selling, general and administrative
38,587
41,982
153,124
163,282
Asset impairment and related charges
610
—
12,713
—
Restructuring and related charges
1,173
—
15,973
809
Total operating expenses
71,783
72,234
302,785
290,373
Income from operations
52,868
9,633
63,136
22,172
Interest expense, net
(2,493)
(571)
(7,326)
(2,696)
Other income (expense), net
5,725
(249)
2,123
(335)
Income before income taxes
56,100
8,813
57,933
19,141
Provision for (benefit from) income taxes
17,980
(75,028)
18,716
(64,853)
Net income
$ 38,120
$ 83,841
$ 39,217
$ 83,994
Net income per share:
Basic
$ 0.33
$ 0.75
$ 0.34
$ 0.75
Diluted
$ 0.32
$ 0.72
$ 0.33
$ 0.72
Weighted average shares outstanding:
Basic
116,619
112,294
115,120
111,651
Diluted
117,699
115,691
117,482
117,359
Harmonic Inc.
Preliminary Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Year Ended
December 31, 2024
December 31, 2023
Cash flows from operating activities:
Net income
$ 39,217
$ 83,994
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
12,139
12,255
Asset impairment and related charges
12,036
—
Stock-based compensation
28,073
27,329
Foreign currency remeasurement
315
1,453
Deferred income taxes, net
(16,436)
(92,856)
Provision for excess and obsolete inventories
10,971
7,396
Other adjustments
569
1,920
Changes in operating assets and liabilities:
Accounts receivable, net
(38,241)
(32,695)
Inventories
8,374
35,403
Other assets
3,199
25,483
Accounts payable
(3,107)
(29,358)
Deferred revenues
(2,210)
(20,823)
Other liabilities
7,018
(12,442)
Net cash provided by operating activities
61,917
7,059
Cash flows from investing activities:
Purchases of investments
—
(6,305)
Proceeds from maturities of investments
—
6,305
Purchases of property and equipment
(9,186)
(8,475)
Net cash used in investing activities
(9,186)
(8,475)
Cash flows from financing activities:
Proceeds from long-term debt
115,000
—
Repayment of convertible debt
(115,500)
—
Payments for debt issuance costs
(332)
(1,025)
Proceeds from other borrowings
3,943
3,835
Repayment of other borrowings
(5,447)
(4,865)
Repurchase of common stock
(30,047)
—
Proceeds from common stock issued to employees
6,628
6,558
Taxes paid related to net share settlement of equity awards
(7,514)
(9,493)
Net cash used in financing activities
(33,269)
(4,990)
Effect of exchange rate changes on cash and cash equivalents
(1,942)
1,089
Net increase (decrease) in cash and cash equivalents
17,520
(5,317)
Cash and cash equivalents at beginning of period
84,269
89,586
Cash and cash equivalents at end of period
$ 101,789
$ 84,269
Cash and cash equivalents and restricted cash at end of period
Cash and cash equivalents
$ 101,457
$ 84,269
Restricted cash
332
—
Total cash, cash equivalents and restricted cash as shown in the condensed consolidated
statement of cash flows
$ 101,789
$ 84,269
Harmonic Inc.
Preliminary Condensed Consolidated Statements of Cash Flows
(Unaudited, in thousands)
Year Ended
December 31, 2024
December 31, 2023
Supplemental cash flow disclosure:
Income tax payments, net
$ 27,308
$ 18,128
Interest payments, net
$ 6,283
$ 1,626
Supplemental schedule of non-cash investing activities:
Capital expenditures incurred but not yet paid
$ 488
$ 618
Supplemental schedule of non-cash financing activities:
Shares of common stock issued upon redemption of the 2024 Notes
4,578
—
Harmonic Inc.
Preliminary GAAP Revenue Information
(Unaudited, in thousands, except percentages)
Three Months Ended
December 31, 2024
September 27, 2024
December 31, 2023
Geography
Americas
$ 186,907
84 %
$ 167,720
86 %
$ 129,406
77 %
EMEA
26,044
12 %
20,269
10 %
30,041
18 %
APAC
9,215
4 %
7,767
4 %
7,645
5 %
Total
$ 222,166
100 %
$ 195,756
100 %
$ 167,092
100 %
Market
Service Provider
$ 178,266
80 %
$ 159,993
82 %
$ 128,566
77 %
Broadcast and Media
43,900
20 %
35,763
18 %
38,526
23 %
Total
$ 222,166
100 %
$ 195,756
100 %
$ 167,092
100 %
Twelve Months Ended
December 31, 2024
December 31, 2023
Geography
Americas
$ 557,255
82 %
$ 447,700
74 %
EMEA
92,553
14 %
127,689
21 %
APAC
28,914
4 %
32,518
5 %
Total
$ 678,722
100 %
$ 607,907
100 %
Market
Service Provider
$ 529,381
78 %
$ 443,005
73 %
Broadcast and Media
149,341
22 %
164,902
27 %
Total
$ 678,722
100 %
$ 607,907
100 %
Harmonic Inc.
Preliminary Segment Information
(Unaudited, in thousands, except percentages)
Three Months Ended December 31, 2024
Broadband
Video
Total Segment
Measures
Adjustments (1)
Consolidated
GAAP
Measures
Net revenue
$ 171,028
$ 51,138
$ 222,166
$ —
$ 222,166
Gross profit
90,200
(1)
34,451
(1)
124,651
(1)
—
124,651
Gross margin %
52.7 %
(1)
67.4 %
(1)
56.1 %
(1)
56.1 %
Three Months Ended September 27, 2024
Broadband
Video
Total Segment
Measures
Adjustments (1)
Consolidated
GAAP
Measures
Net revenue
$ 145,338
$ 50,418
$ 195,756
$ —
$ 195,756
Gross profit
70,256
(1)
34,770
(1)
105,026
(1)
(294)
104,732
Gross margin %
48.3 %
(1)
69.0 %
(1)
53.7 %
(1)
53.5 %
Three Months Ended December 31, 2023
Broadband
Video
Total Segment
Measures
Adjustments (1)
Consolidated
GAAP
Measures
Net revenue
$ 115,229
$ 51,863
$ 167,092
$ —
$ 167,092
Gross profit
48,803
(1)
33,491
(1)
82,294
(1)
(427)
81,867
Gross margin %
42.4 %
(1)
64.6 %
(1)
49.3 %
(1)
49.0 %
Twelve Months Ended December 31, 2024
Broadband
Video
Total Segment
Measures
Adjustments (1)
Consolidated
GAAP
Measures
Net revenue
$ 488,200
$ 190,522
$ 678,722
$ —
$ 678,722
Gross profit
242,186
(1)
125,284
(1)
367,470
(1)
(1,549)
365,921
Gross margin %
49.6 %
(1)
65.8 %
(1)
54.1 %
(1)
53.9 %
Twelve Months Ended December 31, 2023
Broadband
Video
Total Segment
Measures
Adjustments (1)
Consolidated
GAAP
Measures
Net revenue
$ 388,482
$ 219,425
$ 607,907
$ —
$ 607,907
Gross profit
181,932
(1)
133,649
(1)
315,581
(1)
(3,036)
312,545
Gross margin %
46.8 %
(1)
60.9 %
(1)
51.9 %
(1)
51.4 %
(1) Segment gross margin and segment gross profit are Non-GAAP financial measures. Refer to “Use of Non-GAAP Financial
Measures” above and “GAAP to Non-GAAP Reconciliations.”
Harmonic Inc.
GAAP to Non-GAAP Reconciliations (Unaudited)
(in thousands, except percentages and per share data)
Three Months Ended December 31, 2024
Revenue
Gross Profit
Total
Operating
Expense
Income from
Operations
Total Non-
operating
Income, net
Net Income
GAAP
$ 222,166
$ 124,651
$ 71,783
$ 52,868
$ 3,232
$ 38,120
Stock-based compensation
—
—
(8,486)
8,486
—
8,486
Restructuring and related charges
—
—
(1,173)
1,173
—
1,173
Asset impairment and related charges (1)
—
—
(610)
610
—
610
Discrete tax items and tax effect of non-GAAP adjustments
—
—
—
—
—
4,043
Total adjustments
—
—
(10,269)
10,269
—
14,312
Non-GAAP
$ 222,166
$ 124,651
$ 61,514
$ 63,137
$ 3,232
$ 52,432
As a % of revenue (GAAP)
56.1 %
32.3 %
23.8 %
1.5 %
17.2 %
As a % of revenue (Non-GAAP)
56.1 %
27.7 %
28.4 %
1.5 %
23.6 %
Diluted net income per share:
GAAP
$ 0.32
Non-GAAP
$ 0.45
Shares used in per share calculation:
GAAP and Non-GAAP
117,699
(1) Includes impairment charges of $0.2 million for right-of-use assets and $0.4 million related to the fair value of other unrecoverable facility costs.
Three Months Ended September 27, 2024
Revenue
Gross Profit
Total
Operating
Expense
Income from
Operations
Total Non-
operating
Expense, net
Net Income
GAAP
$ 195,756
$ 104,732
$ 69,308
$ 35,424
$ (6,618)
$ 21,718
Stock-based compensation
—
294
(5,416)
5,710
—
5,710
Restructuring and related charges
—
—
(281)
281
—
281
Asset impairment and related charges (1)
—
—
(3,103)
3,103
—
3,103
Discrete tax items and tax effect of non-GAAP adjustments
—
—
—
—
—
(871)
Total adjustments
—
294
(8,800)
9,094
—
8,223
Non-GAAP
$ 195,756
$ 105,026
$ 60,508
$ 44,518
$ (6,618)
$ 29,941
As a % of revenue (GAAP)
53.5 %
35.4 %
18.1 %
(3.4) %
11.1 %
As a % of revenue (Non-GAAP)
53.7 %
30.9 %
22.7 %
(3.4) %
15.3 %
Diluted net income per share:
GAAP
$ 0.19
Non-GAAP
$ 0.26
Shares used in per share calculation:
GAAP and Non-GAAP
117,358
(1) Includes write-off of $1.8 million for internally capitalized software, and impairment charges of $0.8 million for right-of-use assets, $0.1 million for leasehold improvements and $0.4 million related to the fair value of other unrecoverable facility costs.
Three Months Ended December 31, 2023
Revenue
Gross Profit
Total
Operating
Expense
Income from
Operations
Total Non-
operating
Expense, net
Net Income
GAAP
$167,092
$81,867
$72,234
$9,633
$(820)
$83,841
Stock-based compensation
—
454
(6,151)
6,605
—
6,605
Restructuring and related charges
—
(27)
—
(27)
—
(27)
Non-recurring advisory fee
—
—
(2,702)
2,702
—
2,702
Non-cash interest expense related to convertible notes
—
—
—
—
233
233
Discrete tax items and tax effect of non-GAAP adjustments
—
—
—
—
—
(78,693)
Total adjustments
—
427
(8,853)
9,280
233
(69,180)
Non-GAAP
$167,092
$82,294
$63,381
$18,913
$(587)
$14,661
As a % of revenue (GAAP)
49.0 %
43.2 %
5.8 %
(0.5) %
50.2 %
As a % of revenue (Non-GAAP)
49.3 %
37.9 %
11.3 %
(0.4) %
8.8 %
Diluted net income per share:
GAAP
$0.72
Non-GAAP
$0.13
Shares used in per share calculation:
GAAP and Non-GAAP
115,691
Twelve Months Ended December 31, 2024
Revenue
Gross Profit
Total
Operating
Expense
Income from
Operations
Total Non-
operating
Expense, net
Net Income
GAAP
$ 678,722
$ 365,921
$ 302,785
$ 63,136
$ (5,203)
$ 39,217
Stock-based compensation
—
1,089
(26,984)
28,073
—
28,073
Restructuring and related charges
—
460
(15,973)
16,433
11
16,444
Non-recurring advisory fees
—
—
(755)
755
—
755
Asset impairment and related charges (1)
—
—
(12,713)
12,713
—
12,713
Non-cash interest expense related to convertible notes
—
—
—
—
567
567
Discrete tax items and tax effect of non-GAAP adjustments
—
—
—
—
—
(5,736)
Total adjustments
—
1,549
(56,425)
57,974
578
52,816
Non-GAAP
$ 678,722
$ 367,470
$ 246,360
$ 121,110
$ (4,625)
$ 92,033
As a % of revenue (GAAP)
53.9 %
44.6 %
9.3 %
(0.8) %
5.8 %
As a % of revenue (Non-GAAP)
54.1 %
36.3 %
17.8 %
(0.7) %
13.6 %
Diluted net income per share:
GAAP
$ 0.33
Non-GAAP
$ 0.78
Shares used in per share calculation:
GAAP and Non-GAAP
117,482
(1) Includes write-off of $1.8 million for internally capitalized software, and impairment charges of $3.9 million for right-of-use assets, $4.3 million for leasehold improvements, and $2.7 million related to the fair value of other unrecoverable facility costs.
Twelve Months Ended December 31, 2023
Revenue
Gross Profit
Total
Operating
Expense
Income from
Operations
Total Non-
operating
Expense, net
Net Income
GAAP
$ 607,907
$ 312,545
$ 290,373
$ 22,172
$ (3,031)
$ 83,994
Stock-based compensation
—
2,349
(24,980)
27,329
—
27,329
Restructuring and related charges
—
687
(445)
1,132
—
1,132
Non-recurring advisory fees
—
—
(5,201)
5,201
—
5,201
Non-cash interest expense related to convertible notes
—
—
—
—
905
905
Discrete tax items and tax effect of non-GAAP adjustments
—
—
—
—
—
(75,595)
Total adjustments
—
3,036
(30,626)
33,662
905
(41,028)
Non-GAAP
$ 607,907
$ 315,581
$ 259,747
$ 55,834
$ (2,126)
$ 42,966
As a % of revenue (GAAP)
51.4 %
47.8 %
3.6 %
(0.5) %
13.8 %
As a % of revenue (Non-GAAP)
51.9 %
42.7 %
9.2 %
(0.3) %
7.1 %
Diluted net income per share:
GAAP
$ 0.72
Non-GAAP
$ 0.37
Shares used in per share calculation:
GAAP and Non-GAAP
117,359
Harmonic Inc.
Calculation of Adjusted EBITDA by Segment (Unaudited)
(In thousands)
Three Months Ended December 31, 2024
Broadband
Video
Income from operations
$ 57,787
$ 5,350
Depreciation
2,133
835
Other non-operating expenses, net
4,130
1,595
Adjusted EBITDA(1)
$ 64,050
$ 7,780
Revenue
$ 171,028
$ 51,138
Adjusted EBITDA margin % (1)
37.5 %
15.2 %
Three Months Ended September 27, 2024
Broadband
Video
Income from operations
$ 38,192
$ 6,326
Depreciation
2,001
859
Other non-operating expenses, net
(2,733)
(1,199)
Adjusted EBITDA(1)
$ 37,460
$ 5,986
Revenue
$ 145,338
$ 50,418
Adjusted EBITDA margin % (1)
25.8 %
11.9 %
Three Months Ended December 31, 2023
Broadband
Video
Income (loss) from operations
$ 20,268
$ (1,355)
Depreciation
1,794
1,283
Other non-operating expenses, net
(160)
(89)
Adjusted EBITDA(1)
$ 21,902
$ (161)
Revenue
$ 115,229
$ 51,863
Adjusted EBITDA margin % (1)
19.0 %
(0.3) %
Twelve Months Ended December 31, 2024
Broadband
Video
Income from operations
$ 118,354
$ 2,756
Depreciation
8,253
3,886
Other non-operating expenses, net
1,624
510
Adjusted EBITDA(1)
$ 128,231
$ 7,152
Revenue
$ 488,200
$ 190,522
Adjusted EBITDA margin % (1)
26.3 %
3.8 %
Twelve Months Ended December 31, 2023
Broadband
Video
Income (loss) from operations
$ 64,575
$ (8,741)
Depreciation
6,855
5,400
Other non-operating expenses, net
(204)
(131)
Adjusted EBITDA(1)
$ 71,226
$ (3,472)
Revenue
$ 388,482
$ 219,425
Adjusted EBITDA margin % (1)
18.3 %
(1.6) %
(1) Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures.
Refer below for the reconciliation of consolidated adjusted EBITDA to net income (loss), the most directly comparable GAAP measure.
Harmonic Inc.
Preliminary Net Income to Consolidated Segment Adjusted EBITDA Reconciliation (Unaudited)
(In thousands)
Three Months Ended
December 31, 2024
September 27, 2024
December 31, 2023
Net income (GAAP)
$ 38,120
$ 21,718
$ 83,841
Provision for (benefit from) income taxes
17,980
7,088
(75,028)
Interest expense, net
2,493
2,686
571
Depreciation
2,968
2,860
3,077
EBITDA
61,561
34,352
12,461
Adjustments
Stock-based compensation
8,486
5,710
6,605
Restructuring and related charges
1,173
281
(27)
Non-recurring advisory fees
—
—
2,702
Asset impairment and related charges
610
3,103
—
Total consolidated segment adjusted EBITDA (Non-GAAP)
$ 71,830
$ 43,446
$ 21,741
Revenue
$ 222,166
$ 195,756
$ 167,092
Net income margin (GAAP)
17.2 %
11.1 %
50.2 %
Consolidated segment adjusted EBITDA margin (Non-GAAP)
32.3 %
22.2 %
13.0 %
Twelve Months Ended
December 31, 2024
December 31, 2023
Net income (GAAP)
$ 39,217
$ 83,994
Provision for (benefit from) income taxes
18,716
(64,853)
Interest expense, net
7,326
2,696
Depreciation
12,139
12,255
EBITDA
77,398
34,092
Adjustments
Stock-based compensation
28,073
27,329
Restructuring and related charges
16,444
1,132
Non-recurring advisory fees
755
5,201
Asset impairment and related charges
12,713
—
Total consolidated segment adjusted EBITDA (Non-GAAP)
$ 135,383
$ 67,754
Revenue
$ 678,722
$ 607,907
Net income margin (GAAP)
5.8 %
13.8 %
Consolidated segment adjusted EBITDA margin (Non-GAAP)
19.9 %
11.1 %
Harmonic Inc.
GAAP to Non-GAAP Reconciliations on Financial Guidance (Unaudited)
(In millions, except percentages and per share data)
Q1 2025 Financial Guidance (1)
Revenue
Gross Profit
Total Operating
Expense
Income (Loss)
from Operations
Net Income (Loss)
GAAP
$ 120
to
$ 135
$ 67
to
$ 77
$ 71
to
$ 73
$ (4)
to
$ 4
$ (6)
to
$ 1
Stock-based compensation expense
—
1
(9)
10
10
Tax effect of non-GAAP adjustments
—
—
—
—
(1)
to
(2)
Total adjustments
—
1
(9)
10
9
to
8
Non-GAAP
$ 120
to
$ 135
$ 68
to
$ 78
$ 62
to
$ 64
$ 6
to
$ 14
$ 3
to
$ 9
As a % of revenue (GAAP)
55.8 %
to
57.0 %
59.2 %
to
54.1 %
(3.3) %
to
3.0 %
(5.0) %
to
0.7 %
As a % of revenue (Non-GAAP)
56.0 %
to
57.7 %
51.7 %
to
47.4 %
5.0 %
to
10.4 %
2.5 %
to
6.7 %
Diluted net income (loss) per share:
GAAP
$(0.05)
to
$0.01
Non-GAAP
$0.02
to
$0.08
Shares used in per share calculation:
GAAP
117.4
to
118.5
Non-GAAP
118.5
(1) Components may not sum to total due to rounding.
2025 Financial Guidance (1)
Revenue
Gross Profit
Total Operating
Expense
Income from
Operations
Net Income
GAAP
$ 585
to
$ 645
$ 319
to
$ 368
$ 281
to
$ 292
$ 38
to
$ 76
$22
to
$53
Stock-based compensation expense
—
2
(34)
36
36
Tax effect of non-GAAP adjustments
—
—
—
—
(7)
to
(8)
Total adjustments
—
2
(34)
36
29
to
28
Non-GAAP
$ 585
to
$ 645
$ 321
to
$ 370
$ 247
to
$ 258
$ 74
to
$ 112
$51
to
$81
As a % of revenue (GAAP)
54.5 %
to
57.1 %
48.0 %
to
45.3 %
6.5 %
to
11.8 %
3.8 %
to
8.2 %
As a % of revenue (Non-GAAP)
54.8 %
to
57.3 %
42.2 %
to
40.0 %
12.6 %
to
17.4 %
8.7 %
to
12.6 %
Diluted net income per share:
GAAP
$0.19
to
$0.45
Non-GAAP
$0.43
to
$0.68
Shares used in per share calculation:
GAAP and Non-GAAP
119.1
(1) Components may not sum to total due to rounding.
Harmonic Inc.
Calculation of Adjusted EBITDA by Segment on Financial Guidance (Unaudited) (1)
(In millions)
Q1 2025 Financial Guidance
Broadband
Video
Income (loss) from operations
$ 7
to
$ 13
$ (1)
to
$ 1
Depreciation
2
2
1
1
Segment adjusted EBITDA(2)
$ 9
to
$ 15
$ —
to
$ 2
2025 Financial Guidance
Broadband
Video
Income from operations
$ 69
to
$ 98
$ 5
to
$ 14
Depreciation
10
10
3
3
Other non-operating expenses
(2)
(2)
—
—
Segment adjusted EBITDA(2)
$ 77
to
$ 106
$ 8
to
$ 17
(1) Components may not sum to total due to rounding.
(2) Segment Adjusted EBITDA is a Non-GAAP financial measure. Refer below for the
“Net income (loss) to Consolidated Segment Adjusted EBITDA reconciliation on Financial Guidance.”
Harmonic Inc.
Net Income (Loss) to Consolidated Segment Adjusted EBITDA Reconciliation on Financial Guidance (Unaudited) (1)
(In millions)
Q1 2025 Financial
Guidance
2025 Financial Guidance
Net income (loss) (GAAP)
$ (6)
to
$ 1
$ 22
to
$ 53
Provision for (benefit from) income taxes
—
1
6
13
Interest expense, net
2
2
8
8
Depreciation
3
3
13
13
EBITDA
$ (1)
to
$ 7
$ 49
to
$ 87
Adjustments
Stock-based compensation
10
10
36
36
Total consolidated segment adjusted EBITDA (Non-GAAP) (2)
$ 9
to
$ 17
$ 85
to
$ 123
(1) Components may not sum to total due to rounding.
(2) Consolidated Segment Adjusted EBITDA is a Non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” above.
View original content to download multimedia:https://www.prnewswire.com/news-releases/harmonic-announces-fourth-quarter-and-fiscal-2024-results-302372571.html
SOURCE Harmonic Inc.
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Marquis Who’s Who Honors Rupin Chothani for Engineering Leadership
Published
45 minutes agoon
July 23, 2026By
UNIONDALE, N.Y., July 23, 2026 /PRNewswire/ — Marquis Who’s Who honors Rupin Chothani for his leadership in engineering and project management. With more than two decades of professional experience to his credit, Mr. Chothani leverages a unique expertise in fire and petrochemical solutions to find success in his field. As project manager, project engineer and proposal manager at Technip Energies N.V., Mr. Chothani ensures effective results.
Drawn to Engineering
Coming from a family of engineers, Mr. Chothani was naturally drawn to the profession. This inclination was reinforced by comprehensive aptitude and attitude tests administered at the age of 14, which highlighted his strengths in engineering and architecture. Ultimately, this direction reinforced his determination to pursue a degree in mechanical engineering.
By 2003, Mr. Chothani earned a Bachelor of Science in Mechanical Engineering at the University of Mumbai. After a brief role as a junior manufacturing engineer at Artech Cooling Tower Pvt. Ltd., he completed a Master of Science in Mechanical Engineering at the University of Bridgeport in 2006. In addition to these degrees, Mr. Chothani later achieved AutoCAD certification.
Following his graduation in 2006, Mr. Chothani joined CB&I Lummus / ABB Lummus Heat Transfer (now Lummus Technology) as a thermal engineer. Though his work at Lummus Technology lasted only three years, Mr. Chothani was greatly influenced by mentor figures at the company. These mentors, including Ken Catala, Peter Harvard, Chin Dang and Miller Alanath Carter, provided essential guidance.
Building a Family
In December 2008, Mr. Chothani married his wife, Cathy. Along with his son and daughter, his family has contributed richly to his success in engineering and they continue to inspire him to excel. In addition to their support, Mr. Chothani recognizes that there is no alternative to hard work and dedicated learning.
From Lummus Technology to Technip Energies N.V.
Following his work at Lummus Technology, Mr. Chothani worked with Maco Corporation India Pvt. Ltd. By 2011, he joined Complete Heat Transfer Solutions – Environ Energy Systems as a thermal and mechanical engineer. By 2013, Mr. Chothani became a part of Technip Energies N.V. as a furnace mechanical engineer. By 2023, he added to this role and became a project manager, project engineer and proposal manager at the company.
In his current role at Technip Energies N.V., Mr. Chothani is responsible for a variety of essential duties. He manages and executes on engineering projects for ethylene cracking furnaces and heaters, and oversees proprietary technologies. Additionally, he actively coordinates with procurement, logistics, mechanical engineering and process engineering teams to ensure effective results.
Plans for the Future
Moving forward, Mr. Chothani hopes to advance his project management skills, particularly within the firejet industry. At the same time, he aims to share his knowledge of the industry with the next generation of professionals. Outside of his professional ambitions, Mr. Chothani intends to prepare his children to find success, inspiring them and their peers with hands-on experiments and full-day events.
About Marquis Who’s Who®:
Since 1899, when A. N. Marquis printed the First Edition of Who’s Who in America®, Marquis Who’s Who® has chronicled the lives of the most accomplished individuals and innovators from every significant field, including politics, business, medicine, law, education, art, religion and entertainment. Who’s Who in America® remains an essential biographical source for thousands of researchers, journalists, librarians and executive search firms worldwide. The suite of Marquis® publications can be viewed at the official Marquis Who’s Who® website, www.marquiswhoswho.com.
Marquis Who’s Who
Uniondale, NY
(844) 394 – 6946
info@marquiswhoswho.com
www.marquiswhoswho.com
View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/marquis-whos-who-honors-rupin-chothani-for-engineering-leadership-302833756.html
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COALITION OF INDEPENDENT INTERNET PROVIDERS ASKS CRTC TO FIX ERRORS IN WHOLESALE FIBRE RATES
Published
45 minutes agoon
July 23, 2026By
Coalition of competitive ISPs say current fibre rates make competition impossible and threatens to harm millions of Canadian consumers
CHATHAM, ON, July 23, 2026 /CNW/ — A coalition of independent internet service providers (the Coalition) led by TekSavvy Solutions Inc. (TekSavvy) today applied to the Canadian Radio-Television and Telecommunications Commission (CRTC) to review and vary Telecom Order 2026-77, which set final wholesale rates for fibre internet services. In that decision, the CRTC approved wholesale rates for fibre internet services that are higher than the retail prices charged by the large carriers. This makes competition impossible, as independent providers are forced to either sell at a loss or set prices above the large carriers, leaving millions of Canadian consumers without competitive options for essential internet services.
The application identifies key errors that led the CRTC to approve severely inflated final wholesale rates, which make it economically impossible for independent providers to compete. The Coalition argues that the CRTC’s incorrect rates negate the very purpose of Canada’s wholesale framework, which is to foster competition in retail broadband markets. Specifically, the Coalition asks the CRTC to make three key changes to Telecom Order 2026-77:
Eliminate one cost factor that is inconsistent with the CRTC’s established costing principles, which artificially increased fibre wholesale rates by an estimated 25% to 30% (the Adjustment Factor).Reduce another element of the costing that is inflated above reasonable levels: The Coalition calls on the CRTC to reduce the markup applied to wholesale fibre services from 30% to 15%, reflecting declining costs, operational efficiencies, and the need to support competition.Correct technical errors relating to certain wholesale fibre speed descriptions.
“Canadians were promised greater competition for fibre internet services, but these rates make competition impossible.” said Andy Kaplan-Myrth, TekSavvy’s Vice President of Regulatory and Carrier Affairs. “The CRTC must correct these errors to ensure its wholesale rates promote broadband competition that challenges the market power of monopoly incumbents, lowers prices, and increases consumer choice.”
About the Coalition
The Coalition consists of competitive telecommunications providers and industry associations advocating for fair wholesale access to fibre networks and a competitive broadband marketplace that delivers affordable, high-quality Internet services to Canadians, including: TekSavvy Solutions Inc., BC Broadband Association (“BCBA”), Canada-Wide Internet Service Providers Association (“CanWISP”), Fibernetics Inc., ISP Telecom Inc., National Capital FreeNet Inc., Novus Entertainment Inc. and Purple Cow Internet Inc.
About TekSavvy Solution Inc.
Based in Chatham, Ontario, TekSavvy is Canada’s largest independent telecom service company. TekSavvy has been proudly delivering award-winning services and fighting for consumers’ rights for nearly 30 years. TekSavvy is committed to providing quality competitive choice and closing Canada’s digital divide.
SOURCE TekSavvy Solutions Inc.
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Monk Launches Voice Collections, Bringing AI Phone Calls and Callbacks to Accounts Receivable
Published
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Monk’s collections agent, Julia, can now place outbound collection calls and answer inbound AR questions from a dedicated business number, so finance teams can use the channel that collects best without adding headcount.
Multimedia: Watch Voice Collections in action: https://youtu.be/w09PoN1yACE
NEW YORK, July 23, 2026 /PRNewswire/ — Monk, the AI-native accounts receivable platform, today launched Voice Collections. Its collections agent, Julia, can now place outbound collection calls and answer inbound customer questions about invoices and payments from a dedicated phone number for each organization. The feature brings the phone, long the most effective collections channel and the hardest one to scale, into Monk’s Intelligent Collections.
Roughly $10 trillion sits in unpaid invoices worldwide, and the average invoice now takes 59 days to clear (Allianz). Most accounts receivable runs on email, and most of it waits. More than half of B2B invoices in the United States are overdue at any given time, and 92% of businesses are typically paid after their due date (Chaser, 2026). Phone calls recover overdue invoices two to three times better than email (Dunwise), yet 91% of finance teams still rely on email as their main follow-up channel and only 56% use the phone, because calling every overdue account by hand does not scale and a single human dunning call can cost $12 to $18 (HighRadius).
Voice Collections gives teams that coverage. Julia can call on the accounts a playbook flags for phone follow-up, and answer when a customer calls the same number back to ask about an invoice, a payment, or a bank detail. Businesses that follow up on 100% of overdue invoices are 76% more likely to be paid within a week (Chaser), and a voice agent is what makes full coverage possible.
Monk’s collections agent is already proven on the accounts it handles by email. Across Monk’s first 100 customers, Julia reaches customers with a 24% higher response rate than standard dunning and resolves 88.2% of collections with zero human intervention. Voice extends that reach to the phone.
“For years the assumption was that customers would not talk to an AI on the phone,” said George Kurdin, Founder and CEO of Monk. “The evidence now points the other way. People engage with a good voice agent, and in AR the phone was always the channel that collected best. We built Voice Collections so finance teams can finally use it at the scale email gave them.”
That assumption is worth retiring. In a University of Chicago Booth field study of roughly 70,000 interviews, people interviewed by a voice AI agent were 12% more likely to receive an offer, 18% more likely to start, and 17% more likely to still be there after 30 days, and 80% chose the voice AI over a human when given the choice. The setting was recruiting rather than collections, but the finding travels: given a capable voice agent, people lean in rather than hang up. A call also does something email cannot, which is secure a verbal promise to pay in the moment.
Built for finance, with the phone agents kept with strict guardrails
Voice in finance has to be constrained, and Monk designed Voice Collections around that from the start. The agent is read-only on the phone. It answers questions, confirms details, and routes the next step. It will not rewrite an invoice, change a payment status, or accept a sensitive payment change by voice.
The agent is also reference-based. If a caller asks about an invoice, Julia asks for both the company name and the invoice number before looking anything up, and it will not search broadly from a single detail. Every inbound and outbound call is kept in the collection record alongside the email history, so a callback is part of the same thread the team already sees, and anything that needs judgment escalates to a person.
“Voice in finance has to be careful by design,” said Joe Zhou, Co-Founder and CTO of Monk. “Julia will not browse across accounts or move money over the phone. A caller has to bring the company name and invoice number before it confirms anything, and every call lands in the record. In finance a 1% mistake is still unacceptable, so we built for that first and added the reach second.”
Teams run autonomous collections on Monk
Monk runs collections for finance teams at companies like Unify, Pump, Siro, and Elate, and Voice Collections extends what those teams already do by email onto the phone.
“We chose Monk to help automate our collections, a process previously demanding several hours a week of manual, one-off outreach,” said Will Stewart, Head of Finance and BizOps at Unify. “Today, our Monk agent is always running in the background and I have a single dashboard to manage AR from.”
At Pump, which manages volume across more than 1,500 customers, Monk has helped collect over $10 million in recent months.
Voice AI is now infrastructure
The timing reflects how far voice AI has come. It has moved from demo to infrastructure: Vapi has processed more than 1 billion calls, Bland handles over 3.5 million calls a week, and ElevenLabs raised a $500 million round at an $11 billion valuation in early 2026. Monk builds Voice Collections on that foundation and adds the part finance actually needs, which is the AR context, the controls, and the audit trail.
Voice Collections is available now as an opt-in feature. Monk configures the dedicated number and call behavior with each organization before turning it on in Collections. See it in action: https://youtu.be/w09PoN1yACE.
About Monk
Monk is the AI-native accounts receivable platform that helps finance teams turn revenue into cash. Its agent, Julia, runs collections, cash application, and forecasting as one connected system. Monk resolves 88.2% of collections with zero human intervention, reaches customers with a 24% higher response rate than standard dunning, reduces DSO by more than 40%, automatically matches 80% of incoming payments with a full audit trail, and gives finance teams back roughly 26 hours a month. Teams onboard in under a week and see results in their first month. More than $1.5 billion in receivables is managed on the platform, including for customers like Profound and ElevenLabs. Monk has raised $25 million and is based in New York.
Media contact
Kendall Warson
kendall@monk.com
+1 415-827-6585
Sources: Chaser 2026 Accounts Receivable research; Dunwise dunning research; HighRadius collection call cost analysis; University of Chicago Booth field study on AI in recruiting; voice AI figures compiled by Enterprise DNA; Federal Reserve data; Allianz Worldwide DSO survey.
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