Lumen Defender uses Black Lotus Labs' threat intelligence to proactively stop attacks at the network edge  DENVER, May 1, 2024 /PRNewswire/ -- To combat the growing number of cyberattacks targeting business networks, Lumen Technologies (NYSE: LUMN) is unveiling a new threat defense tool driven by Artificial Intelligence (AI)/Machine Learning (ML). Lumen DefenderSM powered by Black Lotus Labs® is a patented product that proactively blocks evolving threats at the network edge, before they can compromise a bu ...

For the quarter ended March 2024, Lumen (LUMN) reported revenue of $3.29 billion, down 12% over the same period last year. EPS came in at -$0.04, compared to $0.10 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $3.39 billion, representing a surprise of -3.00%. The company delivered an EPS surprise of -33.33%, with the consensus EPS estimate being -$0.03.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they c ...

Financial Data and Key Metrics Changes - Total reported revenue declined 12% year-over-year to $3.29 billion, with approximately 34% of the decline attributed to divestitures, commercial agreements, and CDN [14] - Adjusted EBITDA was $977 million with a margin of 29.7%, down from $1.251 billion in the previous year [36] - Free cash flow for the quarter was $518 million, including an expected tax refund of approximately $700 million [37] Business Line Data and Key Metrics Changes - Large enterprise revenue declined 5.8%, while grow revenue increased 1.4% year-over-year, offset by declines in nurture and harvest product revenue [15] - Mass market segment revenue declined 9.2% to $699 million [14] - Fiber broadband revenue grew 11.8%, representing approximately 35% of mass markets broadband revenue [62] Market Data and Key Metrics Changes - North America business declined 7.3%, with wholesale revenue down 11.3% year-over-year [32][33] - International and other revenue declined 65.2%, primarily due to the divestiture of the EMEA business [33] - Nurture products revenue declined 13.3% year-over-year, driven by VPN and Ethernet services [34] Company Strategy and Development Direction - The company is focused on transforming its business through automation and AI, aiming to reduce costs and enhance customer experience [4][7] - A dedicated team has been established to capture rising demand for high-capacity, low-latency network and edge services, driven by GenAI and hybrid multi-cloud architectures [5] - The company is exploring strategic options for its mass markets business, including potential joint ventures and asset-backed securitization [18] Management's Comments on Operating Environment and Future Outlook - Management noted that the debt restructuring created uncertainty for customers, impacting Q1 revenue and EBITDA results [20] - The company expects public sector revenue to be the first channel to pivot to sustainable growth later in the year, followed by mid-markets and large enterprise [32] - Management expressed confidence in the future, highlighting strong customer satisfaction improvements and a robust sales funnel [141][144] Other Important Information - The company completed a TSA agreement, creating over $2.3 billion in new liquidity and extending debt maturities [12][21] - The launch of Lumen Defender, a new security service leveraging AI-powered threat detection, is expected to enhance the company's offerings [27] - The company reported a significant increase in new logo sales, up 21%, and total contract value nearly doubled year-over-year [144] Q&A Session Summary Question: Can you share how much of the organic business revenue declines were seasonal versus other factors? - Management indicated that the declines are industry-wide trends, with customers leaving legacy telecom services and competition also reducing off-net services [41] Question: Can you provide context on the strong sales funnel mentioned in Q1? - Management stated it is too early to determine if Q1 will be the low point for revenue, but they are pleased with the results and focused on execution [48] Question: Can you elaborate on the TSA and its impact on interest expense? - Management confirmed that the TSA contributes approximately $200 million in incremental interest expense, which has been factored into their guidance [54] Question: What is driving the momentum in quantum fiber? - Management highlighted increased marketing efforts and improved penetration as key drivers of subscriber growth [74] Question: How does the company view the competitive environment for next-gen services? - Management emphasized the focus on building a digital platform to meet customer demands for capacity on demand, differentiating from traditional telecom [77] Question: What is the expected cadence for EBITDA and cost reductions? - Management expects benefits from cost reductions to start in Q2, with Q1 being the low point for EBITDA in 2024 [108]

LUMEN® Except for historical and factual information, the matters set forth in this presentation and other of our oral or written statements identified by words such as "estimates," "expects," "anticipates," "believes," "plans," "intends," "will," and similar expressions are forward-looking statements as defined by the federal securities laws, and are subject to the "safe harbor" protections thereunder. These forward-looking statements are not guarantees of future results and are based on current expectatio ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-7784 LUMEN TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) Louisiana 72-0651161 (State or other ju ...

NEWS RELEASE Lumen Technologies reports first quarter 2024 results First Quarter 2024 Highlights DENVER, April 30, 2024 — Lumen Technologies, Inc. (NYSE: LUMN) reported results for the first quarter ended March 31, 2024. Kate Johnson, president and CEO of Lumen, commented "Lumen continued to make material progress in our turnaround with our strategy intently focused on empowering digital enterprises with next generation connectivity solutions powered by our best-in-class nationwide fiber network. "While we ...

Wall Street analysts forecast that Lumen (LUMN) will report quarterly loss of $0.04 per share in its upcoming release, pointing to a year-over-year decline of 140%. It is anticipated that revenues will amount to $3.39 billion, exhibiting a decline of 9.3% compared to the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 11.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during ...

Lumen Technologies, Inc (LUMN) is scheduled to report first-quarter 2024 results on Apr 30, after the closing bell.The Zacks Consensus Estimate for total revenues is pegged at $3.39 billion, suggesting a fall of 9.3% from a year ago. The consensus estimate is currently pegged at a loss of 4 cents per share. In the year-ago quarter, LUMN reported earnings of 10 cents.The company missed the Zacks Consensus Estimate in two of the last four quarters and beat in the remaining quarters. It has a trailing four-qua ...

Summary of Lumen Technologies, Inc. Conference Call Company Overview - **Company**: Lumen Technologies, Inc. (NYSE:LUMN) - **Date**: March 22, 2024 - **Participants**: Chris Stansbury (CFO), Jonathan Chaplin (New Street Research) Key Points Industry Context - The telecommunications industry is experiencing a shift from legacy services to more innovative offerings, particularly in the enterprise sector, driven by the demand for digital transformation and increased networking capacity due to AI and cloud services [3][20][22]. Financial Structure and Strategy - Lumen successfully executed a Transaction Support Agreement (TSA), which is seen as a major milestone that allows the company to focus on business growth with a clear runway until 2029 [4][5]. - The company previously had a $1.1 billion annual dividend and $20 billion in outstanding debt, with significant portions due by 2027 [4]. - The TSA has improved market confidence and provided necessary financing to support the company's turnaround efforts [4][5]. Revenue and EBITDA Projections - Lumen anticipates a return to revenue and EBITDA growth in 2025, with EBITDA expected to accelerate to approximately 9% growth by 2027 [6][8]. - The company acknowledges challenges in 2024 guidance due to customer concerns about liquidity prior to the TSA execution [6][8]. Customer Dynamics - Smaller customers expressed concerns about Lumen's longevity, while larger customers were more focused on the company's operational focus [7][8]. - The company is working on improving customer experience and operational efficiency, which is expected to enhance sales rates and overall performance [10][16]. Capital Expenditure (CapEx) Insights - The CapEx guidance for 2024 remains largely unchanged, with a focus on improving internal processes and customer experience rather than significant new capacity [11][12][16]. - There is a notable demand for increased networking capacity driven by hyperscalers and large enterprises, particularly in the context of AI [12][13]. Competitive Landscape - Lumen is positioned to capture market share as competitors focus on consumer segments rather than enterprise [19][20]. - The company is shifting away from legacy telecom services, which are declining, and investing in future growth areas [19][20]. Market Opportunities - The growth of Network-as-a-Service (NaaS) is highlighted as a significant opportunity, with Lumen's ability to deliver NaaS at a deeper network layer providing a competitive advantage [21][22]. - The company is exploring potential partnerships and joint ventures to enhance its mass market fiber opportunities [39][42]. Long-term Outlook - Lumen's capital structure is not dependent on the mass markets business, and the company believes it can improve EBITDA and leverage before any refinancing needs arise [45][46]. - The focus remains on driving innovation and operational improvements to ensure long-term success and sustainability [45][46]. Additional Insights - The company is considering various strategies for its mass market business, including potential joint ventures and wholesale opportunities [39][40]. - There is a growing concern among cloud providers about future infrastructure capacity, which could stabilize or increase pricing for long-haul networks [25][26]. This summary encapsulates the key discussions and insights from the conference call, highlighting Lumen Technologies' strategic direction, financial outlook, and market positioning within the telecommunications industry.

Lumen Technologies, Inc. (NYSE:LUMN) Morgan Stanley Technology, Media & Telecom Conference March 5, 2024 11:00 AM ET Company Participants Satish Lakshmanan - EVP and Chief Product and Strategy Officer Chris Stansbury - EVP and CFO Conference Call Participants Simon Flannery - Morgan Stanley Simon Flannery Great. All right. Good morning, everybody. Thanks for joining us again today. It's my great pleasure to welcome Lumen. We've got Chris, the CFO, many of you know, and we're delighted that Satish joined us, ...