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Calix secures spot on Fortune's fastest-growing companies list, targets $1 billion revenue

EditorVenkatesh Jartarkar
Published 11/09/2023, 03:20 PM
© Reuters.
CALX
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Calix, Inc. (NYSE: NYSE:CALX), under the leadership of Carl Russo, has secured its place on Fortune's “100 Fastest-Growing Companies” list for 2023, ranking at number 82. Today, the company's transformation from a hardware entity to a software and cloud platform company is complete, positioning it as a significant player serving rural American broadband service providers (BSPs).

Over the past 24 years, Calix has been dedicated to rural American BSPs, reflecting Russo's previous success with Cerent. The transformation of Calix into a platform company that now serves Verizon (NYSE:VZ) and smaller BSPs like Cumberland Connect was initiated by Russo twelve years ago.

In recent years, BSPs have utilized Calix’s platform and managed services to streamline their operations. Tombigbee Fiber, established by the Tombigbee Electric Power Association during the global pandemic, is a notable example of this strategy's success. By leveraging the Calix platform and SmartTown for community investments, Tombigbee Fiber became cash-flow positive in two years and achieved seven-figure monthly profitability in its third year.

The Calix platform offers BSPs a range of Wi-Fi systems to cater to diverse subscriber needs, leading to high Google (NASDAQ:GOOGL) star ratings and Net Promoter Scores (NPS). In Q3 2023, Calix achieved record revenue and gross margin. As indicated in its October 23, 2023 stockholder letter, the company is projected to exceed $1 billion in annual revenue in fiscal 2023.

The U.S. government's planned $60 billion investment in rural broadband connectivity will provide further opportunities for businesses partnering with Calix. This funding could disrupt legacy network operators as BSPs leverage the Calix platform for expansion and improvement of their services.

The CEO Forum Group has recognized the company's achievements, featuring Calix in CEO Forum Magazine. The company's milestones were highlighted by Weening, who joined Calix after leaving Salesforce (NYSE:CRM).

InvestingPro Insights

Building on the article's narrative, InvestingPro real-time data and tips provide a deeper understanding of Calix's financial health and market performance. Calix's market cap stands at 2230M USD, with an adjusted P/E ratio of 46.76 as of Q3 2023. The company's revenue for the last twelve months as of Q3 2023 was 1019.36M USD, reflecting a growth of 27.46%.

Two key InvestingPro Tips for Calix include the company's solid financial foundation, as it holds more cash than debt on its balance sheet, and its promising future, with six analysts revising their earnings upwards for the upcoming period. These tips align with the article's portrayal of Calix as a rapidly growing company with a robust platform serving rural American broadband service providers.

InvestingPro offers numerous additional tips for Calix and other companies, offering valuable insights for investors and industry observers alike.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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