Audiocodes Ltd. · NASDAQ:AUDC
Audiocodes — Q3 2022 Earnings Presentation
14 slides from Audiocodes's earnings presentation, 2022
Slide 1: 3Q 2022 Earnings Call Supplementary Slides
3Q 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 second quarter 2022, attractiveness of our product offerings and platform a
Slide 3: AudioCodes Scale & Reach
AudioCodes Scale&Reach We are the 120 Countries 1,000 Employees 65 of Fortune 100 leading provider Companies are of enterprise Customers voice cloud Services 9 of Fortune Top #1 Microsoft Teams Voice Partner 10 Global Enterprises 3Q 2022 Earnings Call Supplementary Slides
Slide 4: 3Q'22 Financial Highlights
Total revenues of $69.7M vs. $63.4M in 3Q’21, up 10.0% yoy 3Q’22 Non-GAAP EPS of $0.32* vs. $0.38 in 3Q’21 Financial Highlights Non-GAAP Gross Margin of 63.2%* vs. 69.9% in 3Q’21 Non-GAAP Operating Margin at 15.5%* vs. 21.4% in 3Q’21 Service revenues of $26.8M vs. $24.8M in 3Q’21, up 8.2% yoy Produc
Slide 5: 3Q'22 Business Performance
3Q’22 Customer Business Microsoft business grew Experience (CX) Performance nearly 20% YoY declined 5% YoY Conversational Service provider/ AI business grew Other business > 30% YoY up 40% YoY 3Q 2022 Earnings Call Supplementary Slides
Slide 6: 3Q'22 Operational and Customer Highlights
AudioCodes again ranked #1 Enterprise SBC vendor in 2Q’22 by Omdia Signed a 36-month contract with a global auto part 3Q’22 manufacturer selling Live Premium subscription to migrate 5.8k employees in US to Microsoft Teams Voice from Cisco Operational and Signed a 60-month contract with a US-based ut
Slide 7: Ongoing Shift to Services
Ongoing Services as % of revenues Shift to (USD Millions) $75.0 Services $68.4 $69.7 45.0% $66.1 $66.4 $63.4 Revenue $24.4 $27.5 $27.8 $26.8 41.5% 40.6% $50.0 $24.8 Services revenue 40.0% 39.1% 38.5% grew 8.2% YoY. 37.6% 37.0% Within this, professional $25.0 35.0% services activity $38.6 $41.7 $38.8
Slide 8: Non-GAAP Gross Margin
Non-GAAP Gross 75.0% 70.0% 69.0% Margin 68.1% 69.9% 70.0% Shift to services 67.6% 67.2%* 65.0% contributing to 65.6%* 63.7% increasing gross 65.0% margins annually, 63.2%* was offset by less favorable product mix and 60.0% 60.0% temporarily 3Q:21 4Q:21 1Q:22 2Q:22 3Q:22 2019 2020 2021 elevated suppl
Slide 9: Non-GAAP Operating Margin
Non- GAAP 25.0% 25.0% Operating 20.0% 21.4% 20.4% 21.5% 21.6% Margin 18.0%* 17.4%* 15.5%* 20.0% Lower operating 15.0% margin affected by increased 10.0% 15.0% 14.1% investments to 5.0% capitalize on significant 0.0% 10.0% secular growth 3Q:21 4Q:21 1Q:22 2Q:22 3Q:22 2019 2020 2021 opportunities * Im
Slide 10: AudioCodes Live
AudioCodes (USD Millions) Live $40 On track to $30 $30+ more than double Live ARR in 2022 $20 $15 $10 $6.5 $0 December December December 2020 2021 2022 (Achieved) (Achieved) (Target) 3Q 2022 Earnings Call Supplementary Slides
Slide 11: 2022 Outlook
2022 Outlook Revenues (in million) Non-GAAP EPS $275 - $282.5 $1.35-$1.45 3Q 2022 Earnings Call Supplementary Slides
Slide 12: Three-Year Financial Model And Long-Term Targets
Three-Year 2020 2021 1Q22 2Q22 3Q22 LONG-TERM TARGETS Financial Revenue 12.7% 12.8% 12.9% 10.0% 13%-15% 10.2% Model And growth Long-Term Non-GAAP Gross 68.1% 69.0% 67.2%* 65.6%* 63.2%* 67%-70% Targets margin Non-GAAP OPEX 46.6% 47.3% 49.3% 48.2% 47.7% 47%-50% as % of revenues Non-GAAP Operating marg
Slide 13: GAAP to Non-GAAP Reconciliation
Nine months ended Three months ended September 30, September 30, 2022 2021 2022 2021 (Unaudited) (Unaudited) GAAP net income $ 20,917 $ 26,496 $ 5,373 $ 8,263 GAAP net earnings per share $ 0.64 $ 0.78 $ 0.17 $ 0.24 Cost of revenues: GAAP to Non- Share-based compensation (1) Amortization expenses (2)
Slide 14: Thank You
Thank You CE audiocodes