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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 7.01 Regulation FD Disclosure
On November 19, 2021, Casa Systems, Inc. (the “Company”) announced it will host its Virtual Investor Day today beginning at 9:00 a.m. Eastern Standard Time (EST) followed by a Q&A session with key executives. The full text of the press release issued by the Company in connection with the announcement as well as a copy of the investor presentation are furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K.
The information contained in Item 7.01 in this Current Report on Form 8-K (including Exhibits 99.1 and 99.2) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
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Description |
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99.1 |
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99.2 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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This exhibit shall be deemed to be furnished and not filed. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
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Casa Systems, Inc. |
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Date: November 19, 2021 |
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By: |
/s/ Scott Bruckner |
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Scott Bruckner |
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Chief Financial Officer |
Exhibit 99.1
Casa Systems Announces Multi-Year Transformation
Toward Software and Cloud at Investor Day
Andover, Mass. – November 19, 2021 – Casa Systems, Inc. (Nasdaq: CASA) a leading provider of cloud-native and physical infrastructure technology solutions for wireless, cable and fixed broadband networks, will host its 2021 Virtual Investor Day today. The event can be found at https://investors.casa-systems.com and will begin at 9 a.m. Eastern Standard Time followed by a Q&A session with key executives.
Key Event Highlights
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Casa Systems is deploying a disruptive, end-to-end connected cloud solution to help customers generate new revenue from 5G, Rural, and Mobile Private Networks (MPN). |
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Casa Systems expects to benefit from billions of dollars that will be spent by communications service providers (CSPs) and enterprises on network transformation for 5G, Rural and MPN. |
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Long-Term Financial Outlook, Refinancing and Deleveraging Plans. |
“Casa is in the process of a multi-year transformation from a hardware-heavy to a software and cloud-centric company,” said Jerry Guo, President and Chief Executive Officer of Casa Systems. “This is the result of years of product development that is just beginning to be successfully deployed. Software and cloud are where we see our biggest growth potential and it’s where the largest percentage of our development and sales efforts are focused. We are excited to be recognized as an industry leader at such an important time in network transformation.”
Scott Bruckner, Chief Financial Officer of Casa Systems added, "Casa remains committed to driving profitability, increasing operating leverage and further strengthening our balance sheet. We expect at least half of Casa’s revenue mix to come from software and cloud products by fiscal 2025. In addition, as a result of the increased revenue from software, we expect gross margin and gross profit to significantly improve over time and we remain committed to growing our business profitably in a sustainable manner.”
Key Event Highlights
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Casa Systems’ Chief Executive Officer, Jerry Guo, will outline the Company’s vision for a Connected Cloud with multiple cloud components deployed at data centers, service provider edge, and enterprise and consumer premises. |
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The Company’s Chief Customer Officer, Alf de Cardenas, will highlight how the Company is expanding to a broader base of customers and addressable market footprint, as Casa Systems deploys its 5G, Rural and MPN solutions. |
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The Company’s Senior Vice President of Access Devices, Steve Collins, will detail how Casa is creating a network capable of delivering innovative new features with extreme flexibility, for private and public networks, with open cloud-native designs. |
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The Company’s Vice President of Technology, Gibson Ang, will discuss Casa Systems’ 5G Core and Radio solutions. |
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The Company’s Vice President of Wireline Solutions, Peter Wolf, will explain how Casa is positioned today for new solutions in the Cable market. |
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The Company’s Chief Financial Officer, Scott Bruckner, will address the Company’s current and long-term financial position, including financial targets. |
Financial Guidance
As the result of executing on the Company’s strategic priorities, the Company anticipates it will deliver measurable performance improvements by fiscal 2025, including:
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At least 50 percent of revenue coming from Software and Cloud products. |
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Return to 60 percent or greater gross margin. |
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Gross profit to increase at a compound annual growth rate of no less than 10%. |
Webcast Information
Interested parties will need to register for access Casa Systems’ Investor Day webcast through the investor relations area of Casa Systems corporate website, where related materials will be posted prior to the webcast. A replay of the webcast will be available after conclusion of the event for 90 days at https://investors.casa-systems.com.
About Casa Systems, Inc.
Casa Systems, Inc. (Nasdaq: CASA) delivers the core-to-customer building blocks to speed 5G transformation with future-proof solutions and cutting-edge bandwidth for all access types. In today’s increasingly personalized world, we create disruptive architectures built specifically to meet the needs of service provider networks. Our suite of open, cloud-native network solutions unlocks new ways for service providers to build networks without boundaries and maximize revenue-generating capabilities. Commercially deployed in more than 70 countries, Casa Systems serves over 475 Tier 1 and regional service providers worldwide. For more information, visit http://www.casa-systems.com.
CONTACT INFORMATION:
IR Contact
Mike Cummings or Jackie Marcus
617-982-0475
investorrelations@casa-systems.com
Source: Casa Systems, Inc.
Casa Systems Investor Day November 19, 2021 Exhibit 99.2
Safe Harbor These slides and the accompanying oral presentation contain forward-looking statements. All statements other than statements of historical fact contained in this presentation, including statements regarding the projected results of operations and financial position of Casa, including financial targets, business strategy, and plans and objectives for future operations, are forward-looking statements. The words “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “potential”, “predict”, “project”, “target”, “should”, “would”, and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. The Company has based these forward-looking statements on its estimates and assumptions of its financial results and its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs as of the date of this presentation. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the Company’s most recent Annual Report on Form 10-K, which is on file with the SEC. In addition, the Company operates in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for Casa’s management to predict all risks, nor can Casa assess the impact of all factors on its business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements that Casa may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this presentation are inherently uncertain and may not occur, and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely upon forward-looking statements as predictions of future events. Casa undertakes no obligation to update publicly or revise any forward-looking statements for any reason after the date of this presentation, to conform these statements to actual results or to changes in Casa’s expectations. Certain data in this presentation was obtained from various external sources, and Casa has not verified such data with independent sources. Accordingly, Casa does not make any representations as to the accuracy or completeness of that data or to update such data after the date of this presentation. Such data involves risks and uncertainties and is subject to change based on various factors. The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of Casa or this potential offering. In addition to statements and measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this presentation includes certain non-GAAP financial measures, including, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income margin, non-GAAP diluted net income per share, and free cash flow. These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. The non-GAAP financial measures used by Casa may differ from the non-GAAP financial measures used by other companies. A reconciliation of these measures to the most directly comparable GAAP measure is included in the Appendix to these slides. This presentation has been prepared solely for informational purposes and is to be maintained in strict confidence. Neither the information contained in this presentation, nor any further information made available by Casa or any of its affiliates or employees, directors, representatives, officers, agents or advisers in connection with this presentation will form the basis of or be construed as a contract or any other legal obligation.
Jerry Guo - President and CEO Casa Systems Overview
Introducing Casa Systems Senior Leadership Team Steve Collins - Senior Vice President, Access Devices Gibson Ang - Vice President, Product Management Peter Wolff - Vice President, Wireline Solutions Alf de Cárdenas - Chief Customer Officer Scott Bruckner - Chief Financial Officer
Welcome Main Purpose and Goals Explain why we win with cutting-edge solutions validated by customers & partners Introduce the Casa Connected Cloud Outline opportunities for growth driven by network transformation Outline our long-term financial objectives
Our Business Today
We’ve achieved abundant success A market leader in cable with additional share gain potential ahead Business diversified…now the only fully diversified infrastructure vendor globally Validation of our unique core technology by leading tech platforms (Red Hat, Intel, Google Anthos, Amazon EKS)… …and increasing adoption by Tier 1 CSPs Returned the company to profitability, delivered several quarters of growth and have accomplished significant deleveraging
And the road ahead is filled with large opportunities Our target markets are ripe for disruption Networks are transforming now Becoming more software- and cloud-based More converged Networks are no longer the exclusive domain of the CSPs Enterprise MPNs will flourish Increasing demand for end-to-end, plug & play solutions Governments are funding ubiquitous network coverage
…but the journey won’t be without challenges Near-term growth likely to be hampered by supply chain issues Cable investment unlikely to accelerate in short-term Growth in new product revenue will initially be very lumpy Need to be more selective in pursuing opportunities for our CPE business
What lies ahead for Casa?
Transforming networks into the Connected Cloud …with end-to-end cloud network solutions Casa’s Connected Cloud Network Core Access Network Nodes | Radios | Fiber Extension Edge Fixed Wireless | CPE
A new network architecture A long time in development for Casa…NOW ready for prime time Casa’s Connected Cloud Software-based Multi-Cloud Scalable to Hyperscale or a single enterprise Untethered from hardware, but on servers and white boxes and open hardware platforms Converged network, not siloed
Why Casa has been investing in cloud-based networks?
1. Significant benefits for CSP & Enterprise Networks Quickly add revenue generating services Respond more quickly to changes in service demand More efficient network resource management Deployed anywhere: closer to the user, customer premise or public cloud
2. Networks need to evolve Moving from hardware-based… to software-based From Hardware & Siloed… 1. Cable 2. Fixed 3. Wireless Core Access Edge Cable Headend Central Office Wireless Core Node Switch Base Station Set Top Box Gateway Handset FWA … to Software detached from hardware and converged in the cloud… …with open Hardware for Edge & Access
Mobile Private Network Cloud & Access/Edge end-to-end solutions for the enterprise 5G Cloud-native 5G solutions deployable today Rural Infrastructure Cloud-based network more cost-efficient 3. New services our Connected Cloud enables Casa’s Connected Cloud
What this means for Casa
1. Better positioning for large market opportunities $20.4B $11.6B $17.4B Mobile Private Networks: Frost & Sullivan Global Private 5G Network Growth Opportunities, Aug 2021 – Exhibit 2, Private Networks Target Addressable Market by Industry, Global 2019-2025 (2023 Market forecast) 5G: Omdia, Q2 2021 Mobile Infrastructure Market Tracker – CY2023 Market Forecast; Mobile Experts, 2020 FWA Infrastructure and Devices – Table 1-4: FWA equipment revenue by technology (2023 Market Forecast); Mobile Experts, CBRS Report 2020 – Table 1-10: CBRS Radio Equipment Revenue (2023 Market Forecast); Maia Research, Global and China C-Band LNB Market Insights Forecast to 2027 – Figure Global C-Band LNB Revenue, Page 8 (2023 Market Forecast) Rural Infrastructure: RDOF.com/rdof ($20.4 billion total in two phases over 10 years) Casa’s Connected Cloud Rural Infrastructure 5G Mobile Private Networks
2. Over time our products will migrate to new segments Connected Cloud Software Product Suite 4G / 5G Combo packet core Virtual CCAP & FMA controller Orchestration software Open RAN software Virtual routers Access and Edge Hardware Access NetworkFMA/DAA Nodes | Radios | Fiber Extension Edge Fixed Wireless | CPE
Summing up
Benefits of our multi-year transformation Software Growth: Multi-year investment in cloud native solutions is ready to take off Profit Growth: More software in revenue mix = better margins Sustained Leadership: More predictable and sticky revenue
Steve Collins - Senior Vice President, Access Devices The Connected Cloud
Our Mission Create a network that delivers the future Unlock revenue for our customers Disrupt the legacy network approach
Transforming networks into the Connected Cloud …with end-to-end cloud network solutions Access Network Nodes | Radios | Fiber Extension Network Core End-User Fixed Wireless | CPE
Two terms you will hear a lot today: Cloud and open Connected Cloud “Cloud” is used ubiquitously in most segments of the IT industry The “Connected Cloud” is a Software-based connectivity solution for Fixed or Wireless Hardware is not fixed in one location Geographically spread across the world - all the way to the edge of the network Scalable to match demand Perfect for small users (e.g. Private Networks) Perfect for large / hyperscale users (e.g. Tier 1 Public networks) Open Standards-based approach, removing proprietary Interoperable with multi-vendor / technology types Future-proof
Where can the Connected Cloud be deployed? Hosted Cloud Architecture Public or Private Hyperscale Tailored Flexible Dynamic
What are the use cases for the Connected Cloud? Migration from chassis / legacy Telco cloud Private Networking
When is the time right for Casa Open Connected Cloud? Limited cloud-based telco deployments in the world. Ubiquitous cloud-based deployments in public and private cloud Telco: Forward-looking Tier 1s Private: Marquee + Early adopters IMPORTANT: The “land-grab” is now to prove and sell the technology. NOW 3 YEARS 5 YEARS+
What about the incumbent network vendors? Hard to change Cloud replaces existing lines of revenues for large BUs Support for legacy functions is hard Incumbents find it hard to pivot The Connected Cloud is a true Technology Disruptor. This is not a “Casa Theory”
How can you tell if Casa’s technology is any good? Listen to the experts JR Walden Chief Technology Officer Mediacom Darrell Jordan-Smith Senior vice president Industries and Global Accounts, Red Hat Emmanuel Bidet, Vice President Convergent Networks Control, Orange Tanuj Raja Global Head Strategic Partnerships at Google Cloud “At the center of this evolution is Red Hat OpenShift and partners such as Casa Systems who share in our vision…and we look forward to continuing our collaboration” With proven experience in FWA and cloud-native mobile core technologies, Casa Systems is a great partner to help us quickly and cost effectively deliver a high-performance solution” “We are proud to have achieved this project with HPE and Casa Systems, two leading companies in the open 5G solutions market.” “We’re excited to work with Casa Systems to enable communication service providers to deliver a consistent network experience across Edge, Cloud and On-prem”
Gibson Ang - Vice President, Technology 5G Core and Radio
Connected 5G Cloud: Benefits to Network Operators New Services and Applications Ability to charge for Network Slices Increased network performance = Higher average billing Higher ARPU How does Casa enable monetization?
Connected 5G Cloud: Benefits to End-Users Multi-player gaming Human – robot interaction Autonomous vehicle Machine monitoring & control High Reliability Low Latency Traffic control & management Integrated transport control Push-to-X communication (emergency services) Mission Critical Smart Cities Immersive gaming Augmented field workers Telemedicine Live Sport interactive presence Virtual AR How does Casa enable monetization?
5G Core: Technology leadership position Lower latency World-leading TCO and Performance Smaller Footprint Higher throughput More power efficient
Connected 5G Wireless Cloud : What does it enable? Decentralized benefits + Multi-access Edge Compute (MEC) Centralized Applications Social Media Video Streaming Edge Applications Mission Critical AR/VR Low Latency Network Core Edge Network Radio + Compute
Enterprise has total network control Performance is tailored to business needs Network security can be matched to business Network elements can be shared or managed by an Operator Neutral Host Casa’s Connected Cloud is MPN ready now Casa’s Connected 5G Cloud is an Enterprise-grade, scalable wireless network 5G Mobile Private Networks Network Security Performance Network Control
5G Core Operational advantages Public Network Deployment Tools Private Network Deployment Tools Automation tools for rapid deployment Cloud native architecture
Connected 5G Wireless Cloud: Casa is ready Casa’s Connected 5G Wireless Cloud IS READY NOW Other network equipment vendors do NOT have a deployable Cloud Native solution today
Where are we engaging on 5G Wireless opportunities?
Peter Wolff - Vice President, Wireline Solutions Cable
Cable Market Today Major surge in upstream traffic consumption since 2020
Cable Market Today Continued investment in current portfolio Service providers will need to address capacity demands and offer symmetrical services Upstream growth = High-split / Mid-split opportunities Upstream 5 MHz 42 MHz Downstream ~54 MHz Standard-split Upstream 5 MHz 85 MHz Downstream 108 MHz Mid-split Upstream 5 MHz 204 MHz Downstream 258 MHz High-split
Cable: What’s the next area of investment? Virtual CCAP (vCCAP): Simplified network management; better performance Over 7x improvement in space savings versus standard CMTS Flexible scaling with servers, no hardware lock-in Deployed and in testing with operators Converged Interconnect Network Data Switches Remote MAC/PHY Node Data Center Hub Control Plane Servers Data Plane Servers
Cable: What’s the next area of investment? Flexible MAC Architecture (FMA): Building the foundation for the 10G future Cloud native architecture – distributed and disaggregated Allows operators to deploy network functions when, where and how they choose End-to-end Remote MACPHY solution currently in testing with Tier 1 operators Control Plane Servers Data Switches Remote MAC/PHY Node Data Center Hub
Where are we engaging on FMA & vCCAP opportunities? vCCAP FMA
DOCSIS Timeline Always increasing speeds! HFC has years of runway left to add capacity 1997 DOCSIS 1.0 40Mbps DS/10Mbps US DOCSIS 2.0 40Mbps DS/30Mbps US DOCSIS 3.1 10 Gbps DS/1-2 Gbps US DOCSIS 5.0(?) 25 Gbps DS/6Gbps US DOCSIS 1.1 40Mbps DS/10Mbps Us + VOIP,QoS DOCSIS 3.0 1 Gbps DS/200Mbps US DOCSIS 4.0 10 Gbps DS/6Gbps US 1997 1999 2001 2006 2013 2020 2028?
Remaining RMD Vendors New Entrant RMD Vendors Value-Add Capabilities Architecture Flexibility & Performance RPD RMD CMTS vCCAP vRMD LLD DIUC Cloud Native FPGA and ASIC designs Control & Data Plane Separation Virtualized ASIC Based Converged Virtual Solutions Only Casa Systems has an end-to-end portfolio with open, interoperable, cloud-native solutions Delivers capacity, performance, lower cost, and service agility to meet operator and subscriber needs Casa Systems - Significantly Differentiated
Steve Collins - Senior Vice President, Access Devices Rural Broadband
Broadband is now a Necessity
The “Rural Broadband” effect We call this: The “Rural Broadband” effect. Government funding Political policies Equality of services Geopolitical restrictions Security
Why Casa will benefit from the Rural Broadband Effect USA Based E2E Portfolio Efficient / cost-effective Innovative “Connect All”
Rural broadband product set Casa’s Connected Cloud Fiber Extension Fiber Termination | vBNG | G.fast Extension | In-home NTD End-to-End Wireless 5G Core| 5G Radio | 5G FWA CPE
End-to-end Wireless End-to-End Products for all Access Types
Where are we engaging on 5G FWA opportunities?
Where are we engaging on 5G mmW FWA opportunities? Now Next
5G: Spectrum is key Channel bandwidth enables performance 4G CA / 5G FR1 (sub-6) Channel B/W = 40-100MHz 5G FR2 (mmW) Channel B/W = 100-800MHz 4G Channel B/W = 10-40MHz
Casa’s AurusAI is a High-Power mmWave device that wirelessly connects to a mmWave network and is mounted on the outside of the premises in an optimal location. The AurusAI delivers broadband connectivity via an Ethernet cable inside the premises to deliver data hungry homes and businesses with Gigabit broadband services. AurusAI Autonomous Intelligence
Telecom Italia (TIM) Long range mmWave Trial Casa in collaboration with Ericsson and Qualcomm Urban Environment - Turin Distance from Base Station 6.5km / 4.0 mi – Line of Sight FR2 n257 - 26GHz 1Gbps - UDP 700Mbps - Speed Test Ookla TCP
nbn Long range mmWave Trial Rural Environment – Mortlake VIC Distance from Base Station 7.3km / 4.5 mi – Line of Sight FR2 n257 - 26GHz - 4 Carriers of 100MHz (400Mhz Total) 1Gbps Throughput
Fiber Extension Connecting the unconnectable NTD in the home provides power to the DPU and presents an Ethernet handover to the user No negotiations with, dependencies on, or payments to, power utilities. No negotiations with, dependencies on, or payments to, MDU owners for power.
Fiber Extension
Rural broadband product set Casa’s Connected Cloud Fiber Extension Fiber Termination | vBNG | G.fast Extension | In-home NTD End-to-End Wireless 5G Core| 5G Radio | 5G FWA CPE
Chief Customer Officer Alf de Cárdenas
Customer Review Who are Casa’s customers BEFORE NOW NEXT Cable Service Providers Cable Service Providers Wireless Service Providers Fixed Service Providers Cable Service Providers Wireless Service Providers Fixed Service Providers Regional Distribution Channels System Integration Partners Technology Partners
Go-to-Market Strategy How we reach the customer Cable Service Providers Mobile Network Service Providers Wireline/Telco Service Providers Alternative Service Providers Regional Distribution Channels Systems Integration Partners Technology Partners SELL Direct SELL With SELL Through
Salesforce What and where Regional Functions Regional/Account Leaders Overlay Sales Customer Program Managers* Sales Engineers* Implementation Engineers* Global Functions Solution Architects Technical Support Managers Business & Supply Chain Operations Supply Chain
Solving customer challenges Wireless Service Providers Wireless Service Providers Evolving 4G/5G Wireless Core into next generational cloud-native compact platforms New services via Network Slicing Transition compute to the Edge with better efficiency, reduced latency and enhanced customer experience Speed to market with micro-services Wireless IIoT devices for Enterprise customers
Solving Customer challenges Cable Cable Service Providers Capacity Expansion to cover customer demand Upstream demand via High Split Enhance video with virtualization platform; minimized footprint Transitioning to new architectures including DAA & FMA
Solving customer challenges Wireline / Telco Fiber Extension Eliminate fiber disqualifications or exclusions Rural delivery of high-speed wireless broadband Fiber Wholesalers or FTTP players Homes Excluded
Solving customer challenges System Integrators System Integrators Add Casa Portfolio to their solutions portfolio Deliver end-to-end solution with Professional Services and Network Management services
Supply Chain Managing the perfect storm Constrained supply/increased demand End-to-end supply chain impacted Semiconductor supply is the primary challenge Increased prices due to a rise in labor, raw material, and manufacturing costs
Mitigation Actions in Place Supply Chain Long-term orders and purchasing future capacity to mitigate supply risks Expanding our planning horizon & placing future purchase orders well in advance Changing lead-time commitments with our Customers Spot buying components and negotiating premiums to get earlier allocations Determining second source/alternate components Alternative product designs to utilize available components
Scott Bruckner - Chief Financial Officer Financial Overview
Finance Discussion Agenda Q3 2021 and 2021 YTD financial review Update on TLB and plans for deleveraging Capital allocation strategy Financial growth outlook
Q3’21 and YTD’21 Review
TLB Update and Deleveraging Plan Outstanding balances TLB: $279 MM Revolver: $0 MM Revolver balance paid off on Oct. 25, 2021 Net leverage ratio down to 2.73x Committed to TLB Refinance in early 2022
Capital Allocation Target year end cash: $170MM Minimum target cash: $100MM • Operations & Debt Service: $50MM • Inventory: $25MM • Contingency: $25MM Excess Cash: • Deleveraging (target leverage) • Continued investment in R&D and growth
Multi-Year Transformation from Hardware to Software Targeting Improved Profitability Target Target Value How we get there • Grow our Software Revenue > 50% of total revenue by 2025 Continued traction in 5G and radio cores, and our virtual routers • Evaluate partnerships with hardware suppliers to license our software IP • Improve Gross Margin 60%+ by 2025 Increased high margin software revenue • Focus on end-to-end solutions • Work with customers to absorb COGS increases • Grow profitability Gross profit min. CAGR of 10% Software revenue growth • Higher gross margin
Summing up
Benefits of our multi-year transformation Software Growth: Multi-year investment in cloud native solutions is ready to take off Profit Growth: More software in revenue mix = better margins Sustained Leadership: More predictable and sticky revenue
Thank You For more information, please visit: www.casa-systems.com