Ribbon Communications, Inc. (NASDAQ:RBBN) Q1 2023 Earnings Conference Call April 26, 2023 4:30 PM ET
Company Participants
Bita Milanian - SVP, Global Marketing
Bruce McClelland - President, CEO & Director
Miguel Lopez - EVP & CFO
Conference Call Participants
Erik Suppiger - JMP Securities
Timothy Savageaux - Northland Capital Markets
Ku Kang - B. Riley Securities
Gregory Mesniaeff - WestPark Capital
Operator
Greetings, and welcome to the Ribbon Communications First Quarter 2023 Financial Results Conference Call. [Operator Instructions]. It is now my pleasure to introduce your host, Bita Milanian, Senior Vice President, Global Marketing. Thank you, Pete. You may begin.
Bita Milanian
Good afternoon, and welcome to Ribbon's First Quarter 2023 Financial Results Conference Call. I am Bita Milanian, SVP of Marketing at Ribbon Communications. Also on the call today are Bruce McClelland, Ribbon's Chief Executive Officer; and Mick Lopez, Ribbon's Chief Financial Officer. Today's call is being webcast live and will be archived on the Investor Relations section of our website at rbbn.com, where both our press release and supplemental slides are currently available. Certain matters we will be discussing today, including the business outlook and financial projections for the second quarter of 2023 and beyond, are forward-looking statements. Such statements are subject to the risks and uncertainties that could cause actual results to differ materially from those contained in these forward-looking statements. These risks and uncertainties are discussed in our documents filed with the SEC, including our most recent Form 10-K. I refer you to our safe harbor statement included on Slide 2 of the supplemental slides of this conference call.
In addition, we will present non-GAAP financial information on this call. Reconciliations to the applicable GAAP measures are included in the earnings press release we issued earlier today as well as in the supplemental slides we prepared for this conference call, which again, are both available on the Investor Relations section of our website. And now I would like to turn the call over to Bruce. Bruce?
Bruce McClelland
Great. Thanks, Bita, and thanks to everyone for joining us today. I'm very pleased with our performance to start off the year with financial results just above the midpoint of our guidance, building on the momentum from the second half of 2022. Overall, sales grew 7.5% year-over-year to $186 million, and adjusted EBITDA increased $6 million to minus $2 million in the quarter. Bookings were once again very strong with a product and service book to revenue of 1.23x for the company. This represents a 14% increase in bookings generated this quarter versus the first quarter of 2022. Non-GAAP operating expenses were lower by $4 million or 4% year-over-year, in line with our strategy to reduce operating expenses and improve profitability. Gross margins were at the high end of our guidance for the quarter, reflecting consistent margins with our cloud and edge business and lower margins as expected in our IP Optical business from customer and regional mix.