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The best way to describe edge computing is its sort of like a computing process, that takes place on the 'edge'. Edge Computingįirst, edge computing is a very new field that Lumen's looking to expand to. This is pretty interesting because this gives us a look at where Lumen might see revenue growth over the next five years. Where will Lumen's revenue growth come from? During the Earnings Presentation, Jeff Storey revealed three areas of investment in their business: I'm convinced that we'll see positive developments in Lumen's top line revenue this year because management has addressed this as one of their top priorities. I added in the red box around growth because Lumen is now in the growth stage. The picture below was from Lumen's Analyst Day presentation, where Jeff Storey explained that 2021 was the year for growth, now that Lumen has already put their foundational pieces in place. But this time, I think we really should see some good changes in revenue. Now I know it's pretty common for management (and Seeking Alpha authors) to always promise that big growth is right around the corner. We know that management is at least looking in the right directions, so this is a good sign.

Right off the bat, Jeff took ownership for the problem and showed that management was looking to change things up. Neel will go into details, but I want you to hear directly from me that we are not satisfied and are focused on growth.

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While we delivered strong EBITDA and free cash flow in the first quarter, the revenue results don't yet meet our expectation. I understand our business needs to deliver top-line revenue improvement today. It was very reassuring to see CEO Jeff Storey address the revenue problem within the first few minutes of the earnings call. But at the end of the day, revenue has been declining at an abominable rate. They've been working hard to get their debt under control, and they're paying shareholders a nice dividend. Today, Lumen Technologies' biggest problem is their declining revenue. It could be really interesting if Lumen and T-Mobile find a way to combine their 5G and fiber network offerings together. T-Mobile claims to currently has the largest and fastest 5G network, and other studies seem to show support for this claim. Last, and perhaps most exciting, Lumen is starting to work more with T-Mobile. IBM Cloud could help Lumen with their cloud capabilities, and it's important to note that IBM Cloud also works with VMWare. IBM Cloud is one of the biggest cloud providers, up there with AWS ( AMZN), Google ( GOOG) ( GOOGL), and Microsoft ( MSFT). This partnership could help Lumen with its edge computing capabilities. VMWare is an app and cloud company that also serves customers in edge computing. Three partnerships that referenced in the Analyst's Day Presentation that could hold growth potential for Lumen are Lumen's partnership with VMWare ( VMW), IBM Cloud ( IBM), and T-Mobile ( TMUS). We might now know for certain how the partnerships will play out, but there could certainly be great opportunities if Lumen really hits it off with one of their partners. I don't know too much right now about what impact Lumen's partnerships will have on the future of Lumen. There were three positive developments that Lumen talked about during their Analyst's Day presentation and Q1 Earnings Call.įrankly, hearing management talk about these things gave me better confidence in the company's ability to see success over the next 5-10 years. Recently, Lumen hosted an Analyst's Day presentation, where they showed off exciting parts of their business for their great shareholders, and they hosted their Q1 Earnings Presentation, to report on the past three months of business results. If you're interested in learning about the business, and the risks and upsides of the stock, you can check out my recent article here. Just a few days ago, I wrote my article detailing why I liked Lumen as an investment. Lumen Technologies is massively undervalued, and revenue growth might just be the catalyst they need for their shares to climb towards fair value. Photo by HAKINMHAN/iStock via Getty ImagesĪfter listening to Lumen's ( NYSE: LUMN) Q1 2020 Earnings Presentation and their recent Analyst's Day presentation, I believe that investors should have a stronger sense of confidence in Lumen's ability to grow revenue.

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