AudioCodes Reports Third Quarter 2024 Results
AudioCodes (AUDC) reported Q3 2024 results with revenues of $60.2 million, down 2.2% year-over-year. Service revenues increased 6.4% to $32.5 million, representing 53.9% of total revenues. GAAP net income was $2.7 million ($0.09 per share), while Non-GAAP net income was $4.9 million ($0.16 per share). The company's Annual Recurring Revenue (ARR) grew 40% year-over-year to $60 million. During the quarter, AudioCodes repurchased 332,709 shares for $3.6 million and paid a dividend of 18 cents per share.
AudioCodes (AUDC) ha riportato i risultati del terzo trimestre del 2024 con ricavi di 60,2 milioni di dollari, in calo del 2,2% rispetto all'anno precedente. I ricavi da servizi sono aumentati del 6,4% a 32,5 milioni di dollari, rappresentando il 53,9% dei ricavi totali. L'utile netto secondo i principi GAAP è stato di 2,7 milioni di dollari (0,09 dollari per azione), mentre l'utile netto Non-GAAP è stato di 4,9 milioni di dollari (0,16 dollari per azione). Il fatturato ricorrente annuale (ARR) dell'azienda è cresciuto del 40% anno su anno, raggiungendo i 60 milioni di dollari. Durante il trimestre, AudioCodes ha riacquistato 332.709 azioni per un valore di 3,6 milioni di dollari e ha distribuito un dividendo di 18 centesimi per azione.
AudioCodes (AUDC) reportó los resultados del tercer trimestre de 2024 con ingresos de 60.2 millones de dólares, una disminución del 2.2% interanual. Los ingresos por servicios aumentaron un 6.4% a 32.5 millones de dólares, representando el 53.9% de los ingresos totales. La utilidad neta según GAAP fue de 2.7 millones de dólares (0.09 dólares por acción), mientras que la utilidad neta No-GAAP fue de 4.9 millones de dólares (0.16 dólares por acción). Los ingresos recurrentes anuales (ARR) de la empresa crecieron un 40% en comparación con el año anterior, alcanzando los 60 millones de dólares. Durante el trimestre, AudioCodes recompró 332,709 acciones por 3.6 millones de dólares y pagó un dividendo de 18 centavos por acción.
AudioCodes (AUDC)는 2024년 3분기 실적을 발표하며 수익이 6,020만 달러에 달해 전년 대비 2.2% 감소했다고 보고했습니다. 서비스 수익은 6.4% 증가하여 3,250만 달러를 기록했으며, 이는 총 수익의 53.9%를 차지합니다. GAAP 기준 순이익은 270만 달러(주당 0.09 달러)였으며, 비-GAAP 기준 순이익은 490만 달러(주당 0.16 달러)였습니다. 회사의 연간 반복 수익(ARR)은 전년 대비 40% 성장하여 6,000만 달러에 달했습니다. 분기 동안 AudioCodes는 332,709주를 360만 달러에 재매입하였으며 주당 18센트의 배당금을 지급했습니다.
AudioCodes (AUDC) a annoncé les résultats du troisième trimestre 2024, avec des revenus de 60,2 millions de dollars, en baisse de 2,2 % par rapport à l'année précédente. Les revenus de services ont augmenté de 6,4 % pour atteindre 32,5 millions de dollars, représentant 53,9 % des revenus totaux. Le bénéfice net selon les normes GAAP était de 2,7 millions de dollars (0,09 dollar par action), tandis que le bénéfice net Non-GAAP était de 4,9 millions de dollars (0,16 dollar par action). Les revenus récurrents annuels (ARR) de l'entreprise ont augmenté de 40 % d'une année sur l'autre, atteignant 60 millions de dollars. Au cours du trimestre, AudioCodes a racheté 332 709 actions pour 3,6 millions de dollars et a versé un dividende de 18 cents par action.
AudioCodes (AUDC) hat die Ergebnisse des dritten Quartals 2024 bekannt gegeben, mit Einnahmen von 60,2 Millionen US-Dollar, was einem Rückgang von 2,2 % im Jahresvergleich entspricht. Die Service-Einnahmen stiegen um 6,4 % auf 32,5 Millionen US-Dollar, was 53,9 % der Gesamteinnahmen ausmacht. Der GAAP-Nettoeinkommen betrug 2,7 Millionen US-Dollar (0,09 US-Dollar pro Aktie), während das Non-GAAP-Nettoeinkommen 4,9 Millionen US-Dollar (0,16 US-Dollar pro Aktie) betrug. Die wiederkehrenden jährlichen Einnahmen (ARR) des Unternehmens wuchsen im Jahresvergleich um 40 % auf 60 Millionen US-Dollar. Im Laufe des Quartals hat AudioCodes 332.709 Aktien für 3,6 Millionen US-Dollar zurückgekauft und eine Dividende von 18 Cent pro Aktie ausgezahlt.
- Service revenues grew 6.4% YoY, reaching 53.9% of total revenue
- ARR growth of 40% YoY to $60 million
- Live Teams business grew 21% YoY
- Conversational AI contract value increased 50% YoY
- Operating cash flow of $7.9 million in Q3
- Total revenue decreased 2.2% YoY to $60.2 million
- GAAP net income declined to $2.7M from $4.3M YoY
- Non-GAAP net income decreased to $4.9M from $8.3M YoY
- Cash and equivalents decreased to $88.4M from $106.7M since December 2023
Insights
AudioCodes' Q3 results reveal mixed signals. While overall revenues declined
However, profitability metrics declined across the board. Non-GAAP net income dropped to
The strategic pivot toward cloud software and services is showing tangible results. Live Teams business grew
This transformation positions AudioCodes well in the growing UCaaS and CX markets, particularly as enterprises increasingly adopt AI-enhanced communication solutions. While the transition period shows some pressure on margins, the growing recurring revenue base and expanding AI capabilities should provide more stable, predictable revenue streams going forward.
OR YEHUDA,
Third Quarter Highlights
- Quarterly revenues decreased by
2.2% year-over-year to ;$60.2 million - Quarterly service revenues increased by
6.4% year-over-year to ;$32.5 million - GAAP results:
- Quarterly GAAP gross margin was65.2% ;
- Quarterly GAAP operating margin was8.1% ;
- Quarterly GAAP EBITDA was ;$5.9 million
- Quarterly GAAP net income was , or$2.7 million per diluted share.$0.09 - Non-GAAP results:
- Quarterly Non-GAAP gross margin was65.6% ;
- Quarterly Non-GAAP operating margin was11.7% ;
- Quarterly Non-GAAP EBITDA was ;$7.9 million
- Quarterly Non-GAAP net income was , or$4.9 million per diluted share.$0.16 - Net cash provided by operating activities was
for the quarter.$7.9 million - AudioCodes repurchased 332,709 of its ordinary shares during the quarter at an aggregate cost of
.$3.6 million
Details
AudioCodes (NASDAQ: AUDC), a leading provider of unified communications voice, contact center and conversational AI applications and services for enterprises, today announced its financial results for the third quarter ended September 30, 2024.
Revenues for the third quarter of 2024 were
EBITDA for the third quarter of 2024 was
On a Non-GAAP basis, EBITDA for the third quarter of 2024 was
Net income was
On a Non-GAAP basis, net income was
Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to intangible assets; (iii) expenses related to deferred payments in connection with the acquisition of Callverso Ltd; (iv) financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies; (v) tax impact which relates to our Non-GAAP adjustments; and (vi) in Q1 2024 non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the lease for the Company's new headquarters. A reconciliation of net income on a GAAP basis to a non-GAAP basis is provided in the tables that accompany the condensed consolidated financial statements contained in this press release.
Net cash provided by operating activities was
"I am pleased to report we have successfully executed against our strategic priorities this quarter, as we continue to make progress in our long-term goal of leading the voice services market for the UCaaS and CX markets. We continued our transformation to become a cloud software and services company with a higher proportion of recurring revenue vs. legacy perpetual revenues," said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes.
Third quarter services revenues grew
Our success in building Live managed services and recurring revenue stream has translated to strong year-over-year ARR growth of
Speaking of conversational AI, strong operational momentum continues, driven by long-term tailwind of infusing AI into UC and CX workflows in customers' inexorable demand to drive ongoing productivity gains. Accordingly, we have seen significant pick-up in pipeline activities across our entire conversational AI suite, including Voca CIC, our AI first CX solution for Microsoft Teams, SaaS Recording solutions such as Meeting Insights and interaction recording, and Voice AI Connect.
Overall, we delivered on our business priorities in the quarter, with the strength in our Live recurring businesses buttressing the healthy overall pipeline for our major practices such as Microsoft business, CX and Conversational AI. We believe this bodes well for seeing improved top-line growth performance as we head into 2025 and beyond," concluded Mr. Adlersberg.
Share Buy Back Program and Cash Dividend
In July 2024, the Company received court approval in
On July 30, 2024, the Company declared a cash dividend of
During the quarter ended September 30, 2024, the Company acquired 332,709 of its ordinary shares under its share repurchase program for a total consideration of
As of September 30, 2024, the Company had
Conference Call & Web Cast Information
AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company's third quarter of 2024 operating performance, financial results and outlook. Interested parties may participate in the conference call by dialing one the following numbers:
United States Participants: 888-506-0062
International Participants: +1 (973) 528-0011
The conference call will also be simultaneously webcast. Investors are invited to listen to the call live via webcast at the AudioCodes investor website at http://www.audiocodes.com/investors-lobby.
About AudioCodes
AudioCodes (NASDAQ, TASE: AUDC) is a leading innovator of intelligent cloud communications solutions. AudioCodes empowers enterprises and service providers to build and operate state-of-the-art voice networks, unified communications platforms, and AI-driven productivity tools. The cutting-edge portfolio includes cloud-native applications, advanced voice AI technologies, and comprehensive communication solutions tailored for the modern digital workplace. Trusted by global Fortune 500 companies and tier-1 operators worldwide, AudioCodes drives digital transformation through seamless integration, enhanced collaboration, and unparalleled communication experiences.
For more information, visit http://www.audiocodes.com.
Follow AudioCodes' social media channels:
AudioCodes invites you to join our online community and follow us on: AudioCodes Voice Blog, LinkedIn, Twitter, Facebook, and YouTube.
Statements concerning AudioCodes' business outlook or future economic performance; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements'' as that term is defined under
©2024 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What's Inside Matters, OSN, SmartTAP, User Management Pack, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, VocaNom, AudioCodes One Voice, AudioCodes Meeting Insights, AudioCodes Room Experience are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners. Product specifications are subject to change without notice.
Summary financial data follows
AUDIOCODES LTD. AND ITS SUBSIDIARIES | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
September 30, | December 31, | ||
2024 | 2023 | ||
(Unaudited) | (Audited) | ||
ASSETS | |||
CURRENT ASSETS: | |||
Cash and cash equivalents | |||
Short-term and restricted bank deposits | 202 | 212 | |
Short-term marketable securities | 24,245 | 7,438 | |
Trade receivables, net | 58,081 | 51,125 | |
Other receivables and prepaid expenses | 12,085 | 9,381 | |
Inventories | 33,677 | 43,959 | |
Total current assets | 151,812 | 142,661 | |
LONG-TERM ASSETS: | |||
Long-term Trade receivables | |||
Long-term marketable securities | 37,308 | 65,732 | |
Long-term financial investments | 3,123 | 2,730 | |
Deferred tax assets | 4,577 | 6,208 | |
Operating lease right-of-use assets | 33,207 | 36,712 | |
Severance pay funds | 17,132 | 17,202 | |
Total long-term assets | 111,203 | 145,382 | |
PROPERTY AND EQUIPMENT, NET | 25,236 | 10,893 | |
GOODWILL, INTANGIBLE ASSETS AND OTHER, NET | 38,182 | 38,581 | |
Total assets | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
CURRENT LIABILITIES: | |||
Trade payables | 5,479 | 7,556 | |
Other payables and accrued expenses | 24,066 | 29,943 | |
Deferred revenues | 39,390 | 38,820 | |
Short-term operating lease liabilities | 5,859 | 7,878 | |
Total current liabilities | 74,794 | 84,197 | |
LONG-TERM LIABILITIES: | |||
Accrued severance pay | |||
Deferred revenues and other liabilities | 18,110 | 17,142 | |
Long-term operating lease liabilities | 30,742 | 31,404 | |
Total long-term liabilities | 64,745 | 65,208 | |
Total shareholders' equity | 186,894 | 188,112 | |
Total liabilities and shareholders' equity |
|
AUDIOCODES LTD. AND ITS SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
Nine months ended | Three months ended | ||||||
September 30, | September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
(Unaudited) | (Unaudited) | ||||||
Revenues: | |||||||
Products | |||||||
Services | 95,975 | 89,525 | 32,493 | 30,552 | |||
Total Revenues | 180,622 | 180,824 | 60,243 | 61,591 | |||
Cost of revenues: | |||||||
Products | 34,123 | 36,568 | 11,380 | 11,347 | |||
Services | 29,057 | 28,299 | 9,563 | 9,307 | |||
Total Cost of revenues | 63,180 | 64,867 | 20,943 | 20,654 | |||
Gross profit | 117,442 | 115,957 | 39,300 | 40,937 | |||
Operating expenses: | |||||||
Research and development, net | 39,780 | 43,363 | 12,666 | 13,960 | |||
Selling and marketing | 52,427 | 52,747 | 17,607 | 17,221 | |||
General and administrative | 12,146 | 12,657 | 4,155 | 3,977 | |||
Total operating expenses | 104,353 | 108,767 | 34,428 | 35,158 | |||
Operating income | 13,089 | 7,190 | 4,872 | 5,779 | |||
Financial income (expenses), net | (195) | 1,688 | (614) | 492 | |||
Income before taxes on income | 12,894 | 8,878 | 4,258 | 6,271 | |||
Taxes on income, net | (4,358) | (3,753) | (1,579) | (2,019) | |||
Net income | |||||||
Basic net earnings per share | |||||||
Diluted net earnings per share | |||||||
Weighted average number of shares used in computing basic | 30,239 | 31,642 | 30,218 | 31,390 | |||
Weighted average number of shares used in computing diluted | 30,769 | 31,807 | 30,778 | 31,374 |
AUDIOCODES LTD. AND ITS SUBSIDIARIES | ||||||||
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME | ||||||||
Nine months ended | Three months ended | |||||||
September 30, | September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(Unaudited) | (Unaudited) | |||||||
GAAP net income | ||||||||
GAAP net earnings per share | ||||||||
Cost of revenues: | ||||||||
Share-based compensation (1) | 274 | 304 | 99 | 94 | ||||
Amortization expenses (2) | 366 | 379 | 122 | 122 | ||||
Lease expenses (6) | 304 | 322 | - | 322 | ||||
944 | 1,005 | 221 | 538 | |||||
Research and development, net: | ||||||||
Share-based compensation (1) | 1,642 | 2,090 | 471 | 649 | ||||
Deferred payments expenses (3) | - | 375 | - | 125 | ||||
Lease expenses (6) | 342 | 362 | - | 362 | ||||
1,984 | 2,827 | 471 | 1,136 | |||||
Selling and marketing: | ||||||||
Share-based compensation (1) | 2,255 | 3,380 | 783 | 1,050 | ||||
Amortization expenses (2) | 33 | 33 | 11 | 11 | ||||
Deferred payments expenses (3) | - | 375 | - | 125 | ||||
Lease expenses (6) | 38 | 40 | - | 40 | ||||
2,326 | 3,828 | 794 | 1,226 | |||||
General and administrative: | ||||||||
Share-based compensation (1) | 2,113 | 3,242 | 679 | 814 | ||||
Lease expenses (6) | 76 | 80 | - | 80 | ||||
2,189 | 3,322 | 679 | 894 | |||||
Financial expenses (income): | ||||||||
Exchange rate differences (4) | (754) | (1,237) | 55 | (767) | ||||
Income taxes: | ||||||||
Taxes on income, net (5) | 422 | 1,247 | - | 1,023 | ||||
Non-GAAP net income | ||||||||
Non-GAAP diluted net earnings per share | ||||||||
Weighted average number of shares used in computing Non-GAAP | 31,534 | 32,870 | 31,480 | 32,576 | ||||
(1) Share-based compensation expenses related to options and restricted share units granted to employees and others. (2) Amortization expenses related to intangible assets. (3) Expenses related to deferred payments in connection with the acquisition of Callverso Ltd. (4) Financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies. (5) Tax impact which relates to our non-GAAP adjustments. (6) In Q1 2024, non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the lease for the Company's new headquarters.
Note: Non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP. The Company believes that non-GAAP information is useful because it can enhance the understanding of its ongoing economic performance and therefore uses internally this non-GAAP information to evaluate and manage its operations. The Company has chosen to provide this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results and because many comparable companies report this type of information. |
AUDIOCODES LTD. AND ITS SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
Nine months ended | Three months ended | |||||||
September 30, | September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(Unaudited) | (Unaudited) | |||||||
Cash flows from operating activities: | ||||||||
Net income | ||||||||
Adjustments required to reconcile net income to net | ||||||||
Depreciation and amortization | 2,788 | 1,972 | 1,004 | 652 | ||||
Amortization of marketable securities premiums and | 885 | 1,027 | 270 | 315 | ||||
Decrease in accrued severance pay, net | (699) | (493) | (220) | (221) | ||||
Share-based compensation expenses | 6,284 | 9,016 | 2,032 | 2,607 | ||||
Decrease in deferred tax assets, net | 826 | 1,164 | 762 | 996 | ||||
Cash financial loss (income), net | 137 | (397) | (17) | (65) | ||||
Decrease in operating lease right-of-use assets | 4,755 | 6,688 | 1,198 | 2,406 | ||||
Decrease in operating lease liabilities | (3,931) | (8,411) | (496) | (4,056) | ||||
Decrease (increase) in trade receivables, net | (6,014) | 4,645 | (2,247) | (2,294) | ||||
Decrease (increase) in other receivables and prepaid | (2,704) | 1,572 | (2,939) | (339) | ||||
Decrease (increase) in inventories | 10,119 | (8,605) | 4,172 | 907 | ||||
Increase (decrease in trade payables | (2,077) | (4,700) | 377 | (482) | ||||
Increase (decrease) in other payables and accrued | (594) | (6,414) | 1,011 | (1,480) | ||||
Increase (decrease) in deferred revenues | 1,631 | 3,423 | 266 | (3,020) | ||||
Net cash provided by operating activities | 19,942 | 5,612 | 7,852 | 178 | ||||
Cash flows from investing activities: | ||||||||
Proceeds from short-term deposits | 10 | 5,008 | 4 | 2 | ||||
Proceeds of marketable securities | 9,991 | 3,846 | 9,991 | 3,846 | ||||
Proceeds from financial investment | 76 | - | 29 | - | ||||
Proceeds from redemption of marketable securities | 3,450 | 3,084 | - | 1,084 | ||||
Proceeds from redemption of financial investments | - | 14,094 | - | 3,051 | ||||
Purchase of financial investments | (675) | (81) | (675) | (81) | ||||
Purchase of property and equipment | (20,768) | (5,301) | (5,505) | (2,038) | ||||
Net cash provided by (used in) investing activities | (7,916) | 20,650 | 3,844 | 5,864 | ||||
AUDIOCODES LTD. AND ITS SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||
Nine months ended | Three months ended | |||||||
September 30, | September 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
(Unaudited) | (Unaudited) | |||||||
Cash flows from financing activities: | ||||||||
Purchase of treasury shares | (8,340) | (11,973) | (3,586) | (9,047) | ||||
Cash dividends paid to shareholders | (10,896) | (11,399) | (5,443) | (5,681) | ||||
Proceeds from issuance of shares upon exercise of options | 186 | 254 | 6 | 140 | ||||
Net cash used in financing activities | (19,050) | (23,118) | (9,023) | (14,588) | ||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | (7,025) | 3,144 | 2,672 | (8,546) | ||||
Cash, cash equivalents and restricted cash at beginning of period | 30,546 | 24,535 | 20,849 | 36,225 | ||||
Cash, cash equivalents and restricted cash at end of period |
Company Contacts | ||
Niran Baruch, Chief Financial Officer AudioCodes Tel: +972-3-976-4000 | Roger L. Chuchen, VP, Investor Relations AudioCodes Tel: 732-764-2552 |
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SOURCE AudioCodes
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