Audiocodes Ltd. · NASDAQ:AUDC
Audiocodes — Investor Presentation (August 2022)
25 slides from Audiocodes's investor presentation, August 2022
Slide 1: Corporate Presentation
Corporate Presentation NASDAQ: AUDC | August 2022
Slide 2: Safe Harbor
Safe Harbor 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-lo
Slide 3: Who are we?
Who are we? A leading provider of enterprise voice services for UCC CX Unified Communications & Collaboration Customer Experience Years of Domain Market Share in Microsoft Teams Fortune 100 Countries Expertise Enterprise SBC Voice Partner Enterprise Customers
Slide 4: We ended last year exceeding every key business performance metric
Leading the industry We ended last year exceeding every key business performance metric Organic Growth Industry-leading Software Strong FCFs and Acceleration Profitability Margins Capital Returns 2021 Growth to 2021 Non-GAAP 2021 Non-GAAP 2021 Non-GAAP FCFs Revenue Operating Margins Gross Margins TT
Slide 5: Our software and services are deployed in the top global enterprises
Leading the industry Our software and services are deployed in the top global enterprises 9/10 FORTUNE TOP 10 ENTERPRISES 8/10 GLOBAL TOP TELECOM OPERATORS 4/10 TOP MULTINATIONAL BANKS
Slide 6: We are leading the industry by excellence, focus, and unparalleled products and partners
Key to our success We are leading the industry by excellence, focus, and unparalleled products and partners • Largest R&D in the • Most complete native • Strategic partner for • For voice cloud, end industry for voice- voice infrastructure Microsoft, Zoom and user devices, and related services and a
Slide 7: Voice is a Top Interaction Channel in Digital Transformation
Market trends How has the usage of Voice as an interaction channel Voice is a Top changed over the last year? Interaction Channel in Digital Transformation Stayed the Increased 37% same 48% Voice is a high impact, high value Do not know interaction channel 4% Decreased 11% Source: Frost & Sullivan S
Slide 8: Voice growth opportunity
Market trends Voice growth opportunity
Slide 9: Next Stage in Evolution of Voice
Market trends Next Stage in Evolution of Voice Telephony Business Productivity The future of voice is ‘contextual,' Apps Apps recordable, shareable, searchable conversations with activity streams and workflow integrations “It is difficult for most consumers to describe their issues quickly and effec
Slide 10: AudioCodes Voice Platform is enabling voice transformation in a large addressable market
Market size AudioCodes Voice Platform is enabling voice transformation in a large addressable market UCaaS CPaaS CCaaS Conferencing 6 29 17 22 $37B in 2020 $72B by 2025 9 5 14 7 Sources: UCaaS and Conferencing - Gartner Unified Communications Worldwide Forecast, September 2021; CPaaS - IDC Worldwide
Slide 11: We Are The Voice Company
Voice portfolio We Are The Voice Company Meeting Virtual / Cloud- Assistant native SBCs Intelligent Voice Assistant GW / SBCs Conversational IVR IP Phones Compliance Recording Meeting / Huddle Rooms FOR UCC/CX
Slide 12: Voice CPaaS
Technology stack Voice CPaaS Democratizing Voice and AI Connectivity Services 3rd Party Integrations Voice Productivity Applications Meeting IVA/Voice bots Call Recording Assistant Call Flow APIs All-in-One Cloud Voice Platform – CPaaS Session Border Controller WebRTC Telco & Enterprise Domain Voice
Slide 13: Cloud native and MS Teams Voice propelled AudioCodes to No. 1
SBC market share 20% Cloud native and MS 18.8% 17.9% Teams Voice propelled 18% AudioCodes to No. 1 16% revenue share in 2021 14% 12.6% 12% 11.5% 10% 8% 10.2% 14.3% 17.4% 18.8% 6% 2018 2019 2020 2021 Source: Omdia report “Enterprise SBCs and VoIP Gateways Market Tracker, March 2022
Slide 14: SBC is Cornerstone of "Land and Expand"
Competitive advantage SBC is Cornerstone of “Land and Expand” Acquisition tool Upsell Opportunity Cloud Subscription Cloud Services Most Scalable, Interoperable, Cloud Native, and Secure Voice Applications Enterprise SBC Portfolio End User Devices Meeting / Huddle Rooms IP Phones
Slide 15: 2021 Revenue Performance by Segment
Segment performance 2021 Revenue Performance by Segment 3 Enterprise Segments Enterprise UCC UCC ~85% Service Provider CX + CAI ~15% ~85% ~15% CX CAI VOICE APPS & SERVICES Enterprise grew >15% Year-on-Year
Slide 16: Microsoft Teams - Collaboration market leader
Microsoft relationship Cloud Microsoft Teams - Express 2018 2019 2020 2022 Collaboration market leader Teams Meeting Insights Native Teams Devices Operator Connect Direct Routing Voca Smart IVR Room Systems AC Live Cloud Conversational AI AC Live Express AC Live for Teams Years of Microsoft UC 2006
Slide 17: Microsoft Business grew >20% YoY in 2021
Microsoft business traction Microsoft-related Business Microsoft Business grew In $millions >20% YoY in 2021 $121 $100 22% CAGR $84 $73 $55 $47 AudioCodes has >50% share with $37 Microsoft Teams Voice* 2015 2016 2017 2018 2019 2020 2021 * Internal analysis: MS Teams Voice = MS Teams Phone with PSTN
Slide 18: Direct Routing (BYOC) comprises over 85% of MS Teams telephony
Microsoft Teams Phone trends Direct Routing (BYOC*) comprises over 85% of MS Teams telephony How are MS Teams users enabling voice – US Market Millions 12 10 >5X Growth Direct Routing 8 6 >85% <15% 4 2 0 Q2 2020 Q2 2025 Direct Routing Microsoft Calling Plan MS Teams voice users enabled with Microsof
Slide 19: Subscription Revenue (ARR) Doubling Every Year
AudioCodes Live subscription services Subscription Revenue (ARR) $30M+ Doubling Every Year $15M Partnership with MS Teams and $6.5M Zoom Phone will keep on propelling subscription services revenue forward December December December 2020 2021 2022 Achieved Achieved Projected Source: Internal data, no
Slide 20: AudioCodes Live Subscriptions Overview
Live Keys The Subscription Services to our Success AudioCodes Live Subscriptions Overview Live for Teams Live Express Live Cloud A portfolio of managed A SaaS multitenant platform A SaaS multitenant platform services for large enterprises for VAR / SIs / MSP partners for service providers Dedicated
Slide 21: Transition to Services Accelerating
Segment revenue mix Transition to Services 45% 41.1% Accelerating 40% 37.7% 34.2% 35% 32.3% 30% Improving gross and operating margins 25% 24.4% 24.0% 20% 16.7% 14.7% 15% 10% Product Services 5% 58.9% 41.1% 0% 2019 2020 2021 1H 2022 Services revenue growth Services as % of revenues * Product segment
Slide 22: 2021 Revenue Breakdown by Sales Channel
Geos and Channel mix 2021 Revenue Breakdown 2021 Revenue Breakdown by Region ($M) by Sales Channel EMEA 38% 60% 48% CALA 4% APAC 16% North America 42% Top 15 Top 12 Customers Distributors
Slide 23: Our strategy
Our strategy Extend penetration of Voice CPaaS in UCC and CX Key partner focus: Microsoft, Zoom, Genesys Increase customer value via extended portfolio of voice services and apps Accelerate transition to software and subscription services (AC Live) organically and inorganically
Slide 24: Consistent track record of execution with steadily improving revenues and EPS
Financial performance Consistent track record of execution with steadily improving revenues and EPS Revenue ($M) Non-GAAP EPS $275-$282.5 $1.50 $1.35-$1.45 $1.41 $249 $221 $200 $176 $0.89 $157 $0.64 $0.37 2017 2018 2019 2020 2021 2022P 2017 2018 2019 2020 2021 2022P
Slide 25: Thank You
CQ . audiocodes Thank You