Slide 1: Q4-24 and FY2024 Earnings
Q4-24 and FY2024 Earnings February 20, 2025 Benny Eppstein CEO Hadar Rahav CFO 1
Slide 2: Safe Harbor Provision
SAFE HARBOR PROVISION Certain statements made herein that use words such as "estimate," "project," "intend," "expect," "'believe," “may," "might," "potential," "anticipate," "plan" or similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities
Slide 3: 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, financial income
Slide 4: Agenda
AGENDA Business performance and company strategy 1 Benny Eppstein Chief Executive Officer Financial results and performance 2 Hadar Rahav Chief Financial Officer 3 Q&A 4
Slide 5: Today's Speakers
TODAY’S SPEAKERS Benny Eppstein Chief Executive Officer Hadar Rahav Chief Financial Officer 5
Slide 6: Business performance and company strategy
Benny Eppstein Chief Executive Officer Business performance and company strategy 6
Slide 7: FY2024: 5th Consecutive Revenue Growth and Record Profitability KPIs
FY2024: 5TH CONSECUTIVE REVENUE GROWTH AND RECORD PROFITABILITY KPIS Revenue Profitability Cash Generation No debt New Revenue Record profitability Ended 2024 with record-high Record KPIs cash and bank deposits $61M 15.6% Operating Margin $94.7M >18% YoY increase Operating income Positive cash flow
Slide 8: New Logo in Europe: Telia Denmark
NEW LOGO IN EUROPE: TELIA DENMARK Following Norlys’ recent acquisition of Telia Denmark, which closed in April 2024, we aim to offer customers in Denmark the best network and most innovative services as we seek to disrupt the mobile marketplace in Denmark. We want to fulfill our commitment to delive
Slide 9: Industry Recognition for Customers
INDUSTRY RECOGNITION FOR CUSTOMERS Rakuten Mobile has ranked first in the 2024 Boost Mobile is now the Oricon Customer Satisfaction Survey of Mobile #1 Network in NYC Carriers for the second year straight. We recently received a certificate of appreciation from Rakuten Mobile for our contribution to
Slide 10: Productization of RADCOM ACE
PRODUCTIZATION OF RADCOM ACE PRIMARY RADCOM ACE OFFERING Premium solution for top-tier operators TAILORED FOR MID-TIER OPERATORS Lightweight solutions with streamlined integration and subscription-based TAILORED FOR LAB ENVIRONMENTS Test and validate RADCOM ACE capabilities in small-scale, low-risk
Slide 11: ServiceNow Announcement
SERVICENOW ANNOUNCEMENT • Collaboration leverages AIOps to drive network efficiencies and enhance customer satisfaction • Combines service management and service assurance solutions • The new solution provides ticket validation and prioritization to significantly reduce the time and effort network e
Slide 12: Network Expertise and Customer-Centric Focus
NETWORK EXPERTISE AND CUSTOMER-CENTRIC FOCUS LIG ENT T EL ATION IN TOM AU ENERATIVE G AI NS (AI P S ) O NETWORK NT DATA RA LLIGE TIO CU PE INTE IN OM I/M ST A L-POWER ED TE LL ER IGE A N AL Y T IC S IN NT O SIG HT S 12
Slide 13: Go-to-Market Activities
GO-TO-MARKET ACTIVITIES MOBILE WORLD CONGRESS, BARCELONA 1 Significant team presence at the event Multiple demos showcasing our latest 2 innovations and ecosystem integrations 13
Slide 14: Innovation Award
INNOVATION AWARD Z FIERCE <> Network FIERCE NETWORK INNOVATION AWARDS WINNER, 4 RADCGM RADCOM 14
Slide 15: 2024: Key Highlights into a Record-Breaking Year
2024: KEY HIGHLIGHTS INTO A RECORD-BREAKING YEAR Record revenue, double-digit increase, Accelerated profitability, with non-GAAP 5th consecutive year of growth operating income for 2024 increasing by more than 65% y-o-y Debuted new generative AI applications to streamline 5G network operations 2024
Slide 16: Financial results and performance
Hadar Rahav Chief Financial Officer Financial results and performance 16
Slide 17: Q4 2024 Financial Highlights
Q4 2024 Q4 2024 Results Q4 Revenue Financial Q4 Revenue historical trend ($M) Highlights $16.3 Million 14 16.3 12.3 ▪ Record revenue, Q4 Non-GAAP Gross Margin 11.2 representing 16.1% growth y-o-y, 75.5% reflecting strong demand and best-in- Q4 Non-GAAP Operating Profit Q4/2021 Q4/2022 Q4/2023 Q4/202
Slide 18: Full Year Fiscal 2024 Highlights
Full Year Fiscal Revenue slightly above guidance midpoint ($59M-$62M) 2024 Highlights 61 (Amounts in millions and other than revenue reflect non-GAAP) ▪ Record revenue of $61M, representing 18.2% y-o-y growth, 60.5 ▪ 5th Consecutive Year of Revenue Growth Guidance midpoint 2024 Actual ▪ Record profi
Slide 19: Balance Sheet & Cash Flow
Balance Sheet Cash and Bank Deposits As of ($M) 94.7 & Cash Flow 77.7 82.2 69.0 70.6 ▪ FY 2024 Positive Cash Flow of $12.5M 2020 2021 2022 2023 2024 ▪ Ended 2024 with a Cash Flow historical trend record-high cash As of ($M) 12.5 and bank deposits of $94.7M. 7.1 4.5 1.6 ▪ No Debt 2021 2022 2023 2024
Slide 20: FY2025 Revenue Outlook
FY2025 Five-year historical trend and FY2025 outlook ($M) Revenue 61 69.2 Outlook 51.6 46.1 40.3 ▪ Expects FY 2025 revenue growth of 12% - 15% FY2021 FY2022 FY2023 FY2024 FY2025 (Guidance midpoint) Revenue growth ▪ Strong visibility Y-o-Y growth (percentage) driven by solid 18.2% backlog positions 1
Slide 21: Consolidated Statements of Operations (GAAP)
(in thousands of U.S. dollars, except per share data) CONSOLIDATED Three months ended December 31, Tweleve months ended December 31, STATEMENTS OF 2024 2023 2024 2023 Revenues $ 16,264 $ 14,010 $ 61,009 $ 51,600 OPERATIONS Cost of revenues $ 4,137 $ 3,435 $ 15,746 $ 13,773 (GAAP) Gross profit Gross
Slide 22: Consolidated Statements of Operations (Non-GAAP)
(in thousands of U.S. dollars, except per share data) Three months ended Tweleve months ended CONSOLIDATED December 31, 2024 2023 December 31, 2024 2023 STATEMENTS OF Revenues $ 16,264 $ NON-GAAP (1) 14,010 $ 61,009 $ 51,600 OPERATIONS Cost of revenues Gross profit $ $ 3,989 12,275 $ $ 3,307 10,703
Slide 23: Consolidated Balance Sheets
As of As of December December 31, 2024 31, 2023 CONSOLIDATED Cash and cash equivalents $ 19,243 $ 10,892 BALANCE Short-term bank deposits Trade receivables, net $ $ 75,429 19,038 $ $ 71,273 13,412 Inventories $ 1,667 $ 246 SHEETS Other accounts receivable and prepaid expenses Total Current Assets $
Slide 24: 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