Slide 1: 4Q 2022 Earnings Call Supplementary Slides
4Q 2022 Earnings Call Supplementary Slides
Slide 2: Safe Harbor
This presentation contains forward-looking statements. All statements contained in this presentation other than statements of historical facts, including, without limitation, future financial and business performance for the fourth quarter 2022, attractiveness of our product offerings and platform a
Slide 3: We are the leading provider of enterprise voice cloud services
& 9 of Fortune Top #1 Microsoft Teams Phone Partner 10 Global We are the Enterprises leading provider of enterprise voice cloud Services 65 of Fortune 100 966 120 Countries Employees as Companies are of 12/31/22 Customers
Slide 4: Financial Highlights
Total revenues of vs. $66.1M in 4Q’21, up yoy Financial Non-GAAP EPS of * vs. $0.39 in 4Q’21 Highlights Non-GAAP Gross Margin of * vs. 67.6% in 4Q’21 Non-GAAP Operating Margin at * vs. 20.4% in 4Q’21 Service revenues of vs. $24.4M in 4Q’21, up yoy * Impacted by higher supply chain costs
Slide 5: Business Performance
Customer Microsoft Experience (CX) business grew business declined in 4Q and and up in 2022 in 2022 Business Performance Conversational Service provider/ AI business Other business increased grew in in 2022 4Q and in 2022
Slide 6: Operational and Customer Highlights
AudioCodes again ranked #1 Enterprise SBC vendor in 3Q’22 by Omdia Signed a 48-month contract with a Fortune 500 global manufacturer, expanding the scope of our Live Premium subscription to an additional 6.5k users in EMEA on Microsoft Operational Teams voice and Customer Signed a 36-month contract
Slide 7: Services as % of revenues
Services as % of revenues (USD Millions) $75.0 45.0% $68.4 $69.7 $66.1 $66.4 41.5% $27.5 $27.8 $26.8 $28.6 40.6% 40.5% $24.4 $50.0 40.0% 39.1% 38.5% 37.0% 4Q’22 services revenue grew $25.0 35.0% yoy, fueled by $41.7 $38.8 $40.6 $42.9 $42.0 AudioCodes Live and professional services $0.0 30.0% 4Q:21 1
Slide 8: Easing supply chain costs and higher software mix drove margin improvement
75.0% 70.0% 69.0% 68.1% 70.0% 65.4%* 67.6% 67.2%* 65.0% Easing supply 65.6%* 65.8%* 63.7% chain costs and 65.0% higher software 63.2%* mix drove sequential margin 60.0% improvement 60.0% 2019 2020 2021 2022 4Q:21 1Q:22 2Q:22 3Q:22 4Q:22 * Impacted by higher supply chain costs * Impacted by higher su
Slide 9: Higher Non-GAAP gross margins plus ongoing tight opex management
25.0% 25.0% 21.5% 21.6% 20.4% 20.0% 20.0% 18.0% 17.4%* 17.7%* 15.5%* 15.0% 17.1%* Higher Non-GAAP 10.0% 15.0% 14.1% gross margins plus ongoing 5.0% tight opex management 0.0% 10.0% drove sequential 4Q:21 1Q:22 2Q:22 3Q:22 4Q:22 2019 2020 2021 2022 improvement in operating margins * Impacted by highe
Slide 10: Achieved our 2022 target
(USD Millions) $40 $30+ $30 Achieved our $20 2022 target $15 $10 $6.5 $0 December December December 2020 2021 2022
Slide 11: Outlook
Outlook Revenues (in million) Non-GAAP EPS
Slide 12: Financial Model And Long-Term Targets
Financial Model And 12.8% 12.9% 10.0% 10.5% 13%-15% Long-Term Targets 67.2%* 65.6%* 63.2%* * 65.4%* 67%-70% 49.3% 48.2% 47.7% 48.3% 47%-50% 18.0%* 17.4%* 15.5%* * 17.1%* 20%-23% * Impacted by higher supply chain costs
Slide 13: GAAP to Non-GAAP Reconciliation
Year ended Three months ended December 31, December 31, 2022 2021 2022 2021 (Unaudited) (Audited) (Unaudited) GAAP net income $ 28,466 $ 33,751 $ 7,549 $ 7,255 GAAP net earnings per share $ 0.88 $ 1.00 $ 0.23 $ 0.22 GAAP to Non- Cost of revenues: Share-based compensation (1) 425 411 125 134 GAAP Amo
Slide 14: Thank You
Thank CE audiocodes