Slide 1: Earnings Call Supplementary Slides
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 second quarter 2023, attractiveness of our product offerings and platform a
Slide 3: AudioCodes Scale & Reach
AudioCodes Scale & 9 #1 Reach of Fortune Top Microsoft Teams Phone Partner 10 Enterprises We are the leading provider of enterprise voice cloud services 65 of Fortune 100 946 120 Countries Employees as Companies are of 6/30/23 Customers 2Q 2023
Slide 4: 2Q'23 Financial Highlights
Total revenues of $60.0M vs. $59.2M in 1Q’23, up 1.4% qoq 2Q’23 Financial Service revenues of $28.5M accounted for 47.4% of revenues Highlights Non-GAAP gross margin of 64.5% vs. 62.1% in 1Q’23 Non-GAAP operating margin at 9.5% vs. 4.9% in 1Q’23 Non-GAAP EPS of $0.16 vs. $0.08 in 1Q’23 2Q 2023
Slide 5: 2Q'23 Business Performance
Microsoft Customer business Experience (CX) increased business 12% yoy increased 7% yoy 2Q’23 Business Performance Conversational AI business Live ARR increased >15% increased >60% yoy yoy Service provider/ Other revenues declined 35% yoy 2Q 2023
Slide 6: 2Q'23 Operational and Customer Highlights
Signed Signed a a 48-month 72-month contract contract with a multinational (including multi-year 2Q’23 conglomerate deployment subscription to (DO with ramp) NOTa MENTION migrate a minimum SONY) tier-1 global of 10k selling Live SI, providing employees managed SBC service, in support of a multi-nati
Slide 7: Non-GAAP Gross Margin
Non-GAAP 70.0% Gross Margin Sequential margin 65.8% improvement from 65.6% more favorable 65.0% 64.5% product mix 63.2% 62.1% 60.0% 2Q:22 3Q:22 4Q:22 1Q:23 2Q:23 2Q 2023
Slide 8: Non-GAAP Operating Margin
Non- 20.0% 17.4% 17.7% GAAP 15.5% Operating 15.0% Margin 10.0% 9.5% Sequential margin improvement from 4.9% better gross 5.0% margins coupled with lower opex helped by earlier 0.0% than expected 2Q:22 3Q:22 4Q:22 1Q:23 2Q:23 realization from cost saving actions 2Q 2023
Slide 9: AudioCodes Live ARR
AudioCodes (USD Millions) Live ARR $75.0 Ongoing momentum with 2Q ARR up >60% $46-$50 year-over-year $50.0 $40 $24 $25.0 $0.0 2Q:22 2Q:23 2023 Target 2Q 2023
Slide 10: 2023 Outlook
2023 Outlook Revenues (in million) Non-GAAP EPS $240 - $250 $0.55-$0.70 2Q 2023
Slide 11: Financial Model And Long-Term Targets
LONG-TERM 2Q22 3Q22 4Q22 1Q23 2Q23 Financial Revenue TARGETS Model And growth year- over-year 12.9% 10.0% 6.9% -10.8% -12.2% 13%-15% Long-Term Targets Non-GAAP Gross margin 65.6% 63.2% 65.8% 62.1% 64.5% 67%-70% Non-GAAP OPEX as % of revenues 48.2% 47.7% 48.0% 57.2% 55.0% 47%-50% Non-GAAP Operating m
Slide 12: GAAP to Non-GAAP Reconciliation
GAAP to Non- GAAP Reconciliation 2Q 2023
Slide 13: CE audiocodes
CE audiocodes