Slide 1: Q1-25 Earnings
Q1-25 Earnings May 14, 2025 Benny Eppstein CEO Hadar Rahav CFO 1
Slide 2: Safe Harbor Provision
SAFE HARBOR PROVISION This conference call will contain forward-looking statements. Forward-looking statements in the conference call involve several risks and uncertainties, including, but not limited, to the Company's statements about its momentum, strategic direction and trajectory, future execut
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: Q1-25: 17.5% Revenue Increase and Improved Profitability KPIs
Q1-25: 17.5% REVENUE INCREASE AND IMPROVED PROFITABILITY KPIS Revenue Profitability Cash Generation No debt New Quarterly Ended Q1-25 with record-high Improved profitability KPIs Revenue Record cash and bank deposits $16.6M 19% Operating Margin $99.1M 17.5% YoY increase 6.5% YoY increase $4.4M Posit
Slide 8: What is Agentic AI?
WHAT IS AGENTIC AI? The next frontier of artificial intelligence is agentic AI, which uses sophisticated reasoning and planning to solve complex, multi-step problems autonomously. Agentic AI refers to artificial intelligence systems that behave like agents—they can perceive their environment, make d
Slide 9: Two Main Strategic Areas
TWO MAIN STRATEGIC AREAS LEVERAGE GEN-AI AND CUSTOMER-LEVEL INSIGHTS Predict the customer experience, satisfaction levels, and customer intent HARNESS AGENTIC AI AND CUSTOMER-LEVEL INSIGHTS To automate customer service, customer care and operations 9
Slide 10: Partnership: ServiceNow
PARTNERSHIP: SERVICENOW ▪ Last week at Knowledge 2025, ServiceNow launches AI Control Tower, a centralized ServiceNow announced RADCOM command center to govern, manage, secure, and realize value among the first vendors to from any AI agent, model, and workflow. integrate with its AI Agent Fabric. ▪
Slide 11: Partnership: NVIDIA
PARTNERSHIP: NVIDIA ▪ Following our announcement with Nvidia in February, we have reached the next phase of our RADCOM Developing Next-Gen Networking Data Plane development roadmap. Analytics Solution, Powered by NVIDIA BlueField-3 DPU. ▪ Received requests from leading Tel Aviv, February 27, 2025 –
Slide 12: Contract Renewal in North America
CONTRACT RENEWAL IN NORTH AMERICA RADCOM Secures Multi-Year Eight-Figure Contract Renewal for its ACE Platform TEL AVIV, Israel – May 7th, 2025 − RADCOM Ltd. (Nasdaq: RDCM) announced today a multi-year, eight-figure contract renewal with a leading North American telecom operator. This contract renew
Slide 13: Go-to-Market Activities
GO-TO-MARKET ACTIVITIES 1 Mobile World Congress, Barcelona 2 NVIDIA GTC 2025 - AI Conference 3 FutureNet World, London 4 DTW Ignite, TM Forum 13
Slide 14: Q1-2025: Key Highlights
Q1-2025: KEY HIGHLIGHTS Integration with ServiceNow to Accelerated profitability, with non-GAAP Automate Service and Complaint operating income for Q1-2025 increasing Resolution for Telecom Operators by more than 80% y-o-y Developing Next-Gen Q1-2025 Record high cash and short bank Networking Data A
Slide 15: Financial results and performance
Hadar Rahav Chief Financial Officer Financial results and performance 15
Slide 16: Q1 2025 Financial Highlights
Q1 2025 Q1 2025 Results Q1 revenue Financial Q1 Revenue historical trend ($M) 16.6 Highlights $16.6 Million 10.6 12.0 14.1 ▪ Record revenue, Q1 Non-GAAP Gross Margin representing 17.5% 76.3% growth y-o-y, Q1/2022 Q1/2023 Q1/2024 Q1/2025 reflecting our successful execution Q1 Non-GAAP Operating Profi
Slide 17: Balance Sheet & Cash Flow
Cash and bank deposits Balance Sheet As of ($M) & Cash Flow 94.7 99.1 82.2 77.7 ▪ Positive cash flow of $4.4M 2022 2023 2024 Q1/2025 Cash flow historical trend ▪ Ending Q1 2025 As of ($M) with the highest cash & bank 4.4 deposits of $99.1M 3.1 ▪ No debt 0.3 0.2 Q1/2022 Q1/2023 Q1/2024 Q1/2025 17
Slide 18: FY2025 Revenue Outlook
FY2025 Five-year historical trend and FY2025 outlook ($M) Revenue 71.1 61 Outlook 40.3 46.1 51.6 ▪ Increasing FY 2025 revenue growth outlook to 15% - 18% FY2021 FY2022 FY2023 FY2024 FY2025 (Guidance YoY with a midpoint midpoint) of 16.5% (from 12%- Revenue growth 15% YoY, with a Expects 16.5% Y-o-Y
Slide 19: Consolidated Statements of Operations (GAAP)
CONSOLIDATED STATEMENTS OF OPERATIONS (GAAP) Three months ended (In thousands of U.S. dollars, except per share data) March 31, 2025 2024 Revenues $ 16,591 $ 14,123 Cost of revenues $ 4,092 $ 3,751 Gross profit $ 12,499 $ 10,372 Gross profit % 75% 73% Research and development, gross $ 4,749 $ 4,593
Slide 20: Consolidated Statements of Operations (Non-GAAP)
CONSOLIDATED STATEMENTS OF OPERATIONS (NON-GAAP) Three months ended (In thousands of U.S. dollars, except per share data) March 31, 2025 2024 NON-GAAP (1) Revenues $ 16,591 $ 14,123 Cost of revenues $ 3,938 $ 3,611 Gross profit $ 12,653 $ 10,512 Gross profit % 76% 74% Research and development, gross
Slide 21: Reconciliation Between GAAP & Non-GAAP Consolidated Statements of Operations
RECONCILIATION BETWEEN GAAP & NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS Three months ended March 31, (In thousands of U.S. dollars, except per share data) 2025 2024 (unaudited) (unaudited) GAAP gross profit 12,499 10,372 Stock-based compensation 99 84 Amortization of intangible assets 55 56 Non
Slide 22: Consolidated Balance Sheets
CONSOLIDATED BALANCE SHEETS As of As of March 31, December 31, (In thousands of U.S. dollars, except per share data) 2025 2024 Cash and cash equivalents $ 8,032 $ 19,243 Short-term bank deposits $ 91,046 $ 75,429 Trade receivables, net $ 18,054 $ 19,038 Inventories $ 2,726 $ 1,667 Other accounts rec
Slide 23: 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