Slide 1: 1Q 2022 Earnings Call Supplementary Slides
1Q 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 first quarter 2022, attractiveness of our product offerings and platform an
Slide 3: AudioCodes Scale & Reach
AudioCodes Scale&Reach We are the 120 Countries 1,000 Employees 65 of Fortune 100 leading Companies are Customers provider of enterprise voice cloud Services 9 of Fortune #1 Top 10 Global Microsoft Teams Voice Partner Enterprises 1Q 2022 Earnings Call Supplementary Slides
Slide 4: 1Q'22 Operational and Customer Highlights
Working with a Tier-1 service provider, signed a 78-month contract with global freight transport company for $5M TCV 1Q’22 Working with a large SI, signed a contract with global Operational healthcare company for ~3k seats; potential to reach over 50k seats and Customer AudioCodes ranked #1 Enterpri
Slide 5: 1Q'22 Financial Highlights
Total revenues of $66.4M vs. $58.8M in 1Q’21, up 12.8% yoy 1Q’22 Non-GAAP EPS of $0.33* vs. $0.37 in 1Q’21 Financial Highlights Non-GAAP Gross Margin of 67.2%* vs. 68.7% in 1Q’21 Non-GAAP Operating Margin at 18.0%* vs. 20.4% in 4Q’21 Service revenues of $27.5M vs. $21.8M in 1Q’21, up 26.2% yoy Produ
Slide 6: 1Q'22 Business Performance
Enterprise Business ~85% Enterprise ~85% ~15% UCC ~15% Service Provider/ 1Q’22 CX + CAI Other Business Performance Enterprise Microsoft Service provider/ business grew business grew Other business > 15% yoy > 25% yoy down ~ 10% yoy Unified Conversational AI Customer Communications (CAI), including E
Slide 7: Ongoing Shift to Services
Ongoing (USD Millions) Services as % of revenues Shift to $75.0 Services 45.0% $66.1 $66.4 $63.4 $58.7 $58.8 $60.6 Revenue $27.5 41.5% $50.0 $24.8 $24.4 $21.8 $22.8 40.0% 39.1% $21.0 1Q’22 services 37.1% 37.6% revenue grew 37.0% 35.8% 26.2% yoy and $25.0 35.0% reached 41.5% of $41.7 $38.8 overall re
Slide 8: Non-GAAP Gross Margin
Non-GAAP 75.0% 70.0% 69.0% Gross Margin 68.1% 69.7% 69.9% 70.0% 68.7% Mix shift to services 67.6% 67.2%* 65.0% contributing to 63.7% increasing gross 65.0% margins annually, offset by temporarily 60.0% elevated supply 60.0% 1Q:21 2Q:21 3Q:21 4Q:21 1Q:22 2019 2020 2021 chain costs in 2022 * Excluding
Slide 9: Non-GAAP Operating Margin
Non-GAAP 25.0% 22.4% 22.4% 25.0% Operating 21.4% 20.4% 21.5% 21.6% Margin 20.0% 18.0%* 20.0% 15.0% Balancing revenue growth 10.0% 15.0% 14.1% with investments 5.0% to capitalize on significant 0.0% 10.0% secular growth 1Q:21 2Q:21 3Q:21 4Q:21 1Q:22 2019 2020 2021 opportunities * Excluding open marke
Slide 10: AudioCodes Live
(USD Millions) AudioCodes $40 Live $30 $30+ On track to $20 more than $15 double Live ARR $10 in 2022 $6.5 $0 December December December 2020 2021 2022 (Achieved) (Achieved) (Target) 1Q 2022 Earnings Call Supplementary Slides
Slide 11: 2022 Outlook
2022 Outlook Revenues (in million) Non-GAAP EPS $277 - $285 $1.40-$1.60 1Q 2022 Earnings Call Supplementary Slides
Slide 12: Three-Year Financial Model And Long-Term Targets
LONG-TERM 2019 2020 2021 1Q22 Three-Year TARGETS Financial Revenue growth 13.7% 10.2% 12.7% 12.8% 13%-15% Model And Long-Term Non-GAAP Gross margin 63.7% 68.1% 69.0% 67.2%* 67%-70% Targets Non-GAAP OPEX as % of 49.6% 46.6% 47.3% 49.3% 47%-50% revenues Non-GAAP Operating margin 14.1% 21.5% 21.6% 18.0
Slide 13: GAAP to Non-GAAP Reconciliation
Three months ended March 31, 2022 2021 (Unaudited) GAAP net income $ 8,608 $ 9,993 GAAP net earnings per share $ 0.26 $ 0.29 GAAP to Non- Cost of revenues: GAAP Share-based compensation (1) 49 76 Amortization expenses (2) 190 68 Reconciliation 239 144 Research and development, net: Share-based compe
Slide 14: Thank You
Thank You CE audiocodes f N