Audiocodes Ltd. · NASDAQ:AUDC
Audiocodes — Q3 2023 Earnings Presentation
13 slides from Audiocodes's earnings presentation, 2023
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 100 938 120 Countries Employees as Companies are of 9/30/23 Customers 3Q 2023
Slide 4: 3Q'23 Financial Highlights
Total revenues of $61.6M vs. $60.0M in 2Q’23, up 2.6% QoQ 3Q’23 Financial Service revenues of $30.6M vs $28.5M in 2Q’23, up 7.4% QoQ Highlights Non-GAAP gross margin of 67.3% vs. 64.5% in 2Q’23 Non-GAAP operating margin at 15.5% vs. 9.5% in 2Q’23 Non-GAAP EPS of $0.25 vs. $0.16 in 2Q’23 3Q 2023
Slide 5: 3Q'23 Business Performance
Microsoft Customer business Experience (CX) increased business 13% YoY increased 13% 3Q’23 YoY Business Performance Conversational AI business Live ARR increased >50% increased >50% YoY YoY Service provider/ Other revenues declined 53% YoY 3Q 2023
Slide 6: 3Q'23 Operational and Customer Highlights
AudioCodes again ranked #1 Enterprise SBC vendor in 2Q’23 by Omdia Signed a 36-month contract with a tier-1 system integrator, providing conversational IVA system to a large auto service 3Q’23 firm with a broad distribution of local affiliates across the US Operational and Signed a 36-month contract
Slide 7: Non-GAAP Gross Margin
Non-GAAP 70.0% Gross Margin 67.3% 65.8% Sequential margin 65.0% improvement from 64.5% more favorable product/ service 63.2% mix and more 62.1% efficient utilization of service resources 60.0% 3Q:22 4Q:22 1Q:23 2Q:23 3Q:23 3Q 2023
Slide 8: Non-GAAP Operating Margin
Non- 20.0% GAAP 17.7% Operating 15.5% 15.5% 15.0% Margin 10.0% 9.5% 4.9% 5.0% 0.0% 3Q:22 4Q:22 1Q:23 2Q:23 3Q:23 3Q 2023
Slide 9: AudioCodes Live ARR
AudioCodes (USD Millions) Live ARR $75.0 Ongoing momentum with 3Q ARR up >50% $46-$50 year-over-year $50.0 $43 $31 $28 $25.0 $0.0 3Q:22 3Q:23 2022 2023 Target 3Q 2023
Slide 10: 2023 Outlook
2023 Outlook Revenues (in million) Non-GAAP EPS $240 - $250 $0.65-$0.75 3Q 2023
Slide 11: Financial Model And Long-Term Targets
Long-Term 3Q22 4Q22 1Q23 2Q23 3Q23 Financial Revenue Targets Model And growth year- over-year 10.0% 6.9% -10.8% -12.2% -11.7% 6%-12% Long-Term Non-GAAP EPS Targets growth year- over-year * 25%-50% Non-GAAP Gross margin 63.2% 65.8% 62.1% 64.5% 67.3% 65%-68% Non-GAAP OPEX as % of revenues 47.7% 48.0%
Slide 12: GAAP to Non-GAAP Reconciliation
GAAP to Non- GAAP Reconciliation 3Q 2023
Slide 13: Thank You
Thank You CE audiocodes