Slide 1: Q3-23 Conference Call
Q3-23 CONFERENCE CALL November 8th, 2023
Slide 2: Agenda
AGENDA Introduction and safe harbor CEO – Eyal Harari, Chief Executive Officer CFO – Hadar Rahav, Chief Financial Officer Q&A 2
Slide 3: Safe Harbor Provision
SAFE HARBOR PROVISION Forward-looking statements in the conference call involve several risks and uncertainties, including, but not limited, to the Company's statements about its full-year 2023 revenue guidance, the potential to scale up to a mid-size software company, levels of gross margin, furthe
Slide 4: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES In this conference call, management will refer to certain non-GAAP financial measures, which are provided to enhance the user's overall understanding of the Company's financial performance. By excluding certain non- cash stock-based compensation expenses, acquisition-rela
Slide 5: Q3-23 Overview
Q3-23 OVERVIEW Third-quarter revenues of $13.2 million, 10% quarterly revenue growth year-over-year. Managed costs carefully and maintained the same non-GAAP operating expenses ($8.6M compared to $8.3M in the third quarter of 2022). GAAP net loss was $0.3 million compared to a net loss of $0.4
Slide 6: Third Quarter 2023 Financial Results
THIRD QUARTER 2023 FINANCIAL RESULTS
Slide 7: Consolidated Statements of Operations (GAAP)
CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP) Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Revenues $ 13,195 $ 12,011 $ 37,590 $ 33,762 Cost of revenues $ 3,510 $ 3,308 $ 10,338 $ 9,323 Gross profit $ 9,685 $ 8,703 $ 27,252 $ 24,439 Gross profit % 73% 72% 72% 7
Slide 8: Consolidated Statements of Operations (Non-GAAP)
CONSOLIDATED STATEMENTS OF OPERATIONS (NON-GAAP) Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 NON-GAAP (1) Revenues $ 13,195 $ 12,011 $ 37,590 $ 33,762 Cost of revenues $ 3,252 $ 3,207 $ 9,874 $ 9,031 Gross profit $ 9,943 $ 8,804 $ 27,716 $ 24,731 Gross profit
Slide 9: Operating Expenses (GAAP)
OPERATING EXPENSES (GAAP) Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Research and development, gross $ 5,527 $ 5,285 $ 15,248 $ 16,193 Less - royalty-bearing participation $ 104 $ 187 $ 546 $ 602 Research and development, net $ 5,423 $ 5,098 $ 14,702 $ 15,59
Slide 10: Operating Expenses (Non-GAAP)
OPERATING EXPENSES (NON-GAAP) Three months ended Nine months ended September 30, September 30, 2023 2022 2023 2022 Unaudited Unaudited Unaudited Unaudited NON-GAAP (1) Research and development, gross $ 4,342 $ 4,644 $ 12,982 $ 14,298 Less - royalty-bearing participation $ 104 $ 187 $ 546 $ 602 Resea
Slide 11: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS (thousands of U.S. dollars) As of As of September 30, December 31, 2023 2022 Cash and cash equivalents $ 8,458 $ 9,527 Short-term bank deposits $ 70,106 $ 64,130 Trade receivables, net $ 13,677 $ 11,074 Inventories $ 390 $ 795 Other accounts receivable and prepaid expense
Slide 12: Current Assets vs. Current Liabilities ($M)
CURRENT ASSETS VS. CURRENT LIABILITIES ($M) 100.0 93.9 90.0 86.6 83.2 80.0 70.0 60.0 50.0 40.0 30.0 19.7 20.4 20.0 15.7 10.0 - Q3-21 Q3-22 Q3-23 Current Assets Current Liabilities 12
Slide 13: Thank You
THANK YOU All rights reserved. This presentation contains proprietary information of RADCOM Ltd. Without the express prior written permission of RADCOM Ltd., no part of the contents hereof may be used for any other purpose, disclosed to persons or firms outside the recipient company, or reproduced b