Business
RADCOM Delivers Strong First Quarter Results with 17.5% Y-o-Y Revenue Growth
Continues its Strategy for Profitable Growth Achieves Highest Ever Company Cash Level of $85.3 Million TEL AVIV, Israel, May 15, 2024 /PRNewswire/ -- RADCOM
About this update from Radcom Ltd.
Continues its Strategy for Profitable Growth Achieves Highest Ever Company Cash Level of $85.3 Million TEL AVIV, Israel , May 15, 2024 /PRNewswire/ -- RADCOM Ltd. (NASDAQ: RDCM) announced financial results for the first quarter ended March 31, 2024 . First Quarter 2024 Financial Highlights: Total revenues for the first quarter were $14.1 million , compared to $12.0 million in the first quarter of 2023, 17.5% year-over-year growth . GAAP net income for the first quarter was $0.8 million , or $0.05 per diluted share, compared to $0.6 million , or $0.04 per diluted share, for the first quarter of 2023. Non-GAAP net income for the period was $2.8 million , or $0.18 per diluted share, compared to $1.8 million , or $0.12 per diluted share, for the first quarter of 2023. As of March 31, 2024 , the Company had cash, cash equivalents, and short-term bank deposits of $85.3 million and no debt , ending the quarter with its highest - ever cash levels. Management Comments: Hilik Itman , RADCOM's Interim Chief Executive Officer, commented on the results: "We continued our positive momentum from 2023 into 2024 with a revenue increase of 17.5%, a nineteenth consecutive quarter of year-over-year growth. Thanks to our strong execution and careful expense management, we continued delivering profitable growth and generated positive cash flow, reaching a new milestone totaling $85.3 million ." Mr. Itman continued, "We have renewed our multi-year contract with Rakuten Mobile , extending our collaboration and strengthening our partnership with this innovative operator in Japan as announced last month. This contract extension includes advanced artificial intelligence (AI)- powered analytics, enabling Rakuten Mobile to drive efficient, automated network operations for its nationwide rollout." He added, "Also, a U.S. telecom operator has extended its contract to use RADCOM ACE. As part of this contract extension, RADCOM ACE will be hosted and accessed on Amazon Web Services as Software-as-a-Service." Mr. Itman concluded, "Based on our current visibility, sales engagements, and overall market opportunity, we remain well-positioned to deliver on our customer commitments, drive the business forward to deliver a fifth consecutive year of revenue growth, and increase our profitability. This gives us the confidence to raise the lower end of our 2024 revenue guidance to $57 - $60 million (from $56 to $60 million )." Earnings Conference Call RADCOM's management will hold an interactive conference call on the same day at 8:00 AM Eastern Time ( 3:00 PM Israel Daylight Time) to discuss the results and answer participants' questions. To join the interactive call, please call one of the following numbers approximately five minutes before the call is scheduled to begin: From the US (toll-free): +1-866-652-8972 From other locations: +972-3-918-0644 A live webcast of the presentation will be available at https://veidan.activetrail.biz/radcomq1-2024 . The webcast will be archived for 90 days following the live presentation. For those unable to listen to the call, a replay will be available a few hours later in the investor relations section on the Company's website at https://radcom.com/investor-relations/ . For all investor inquiries, please contact: Investor Relations: Miri Segal MS-IR LLC 917-607-8654 [email protected] Company Contact: Hadar Rahav CFO +972-77-7745062 [email protected] About RADCOM RADCOM (NASDAQ: RDCM) is the leading expert in 5G-ready cloud-native, network intelligence solutions for telecom operators transitioning to 5G. RADCOM Network Intelligence consists of RADCOM Network Visibility, RADCOM Service Assurance, and RADCOM Network Insights. The RADCOM Network Intelligence suite offers intelligent, container-based, on-demand solutions to deliver network analysis from the RAN to the core for 5G assurance. Utilizing automated and dynamic solutions with smart minimal data collection and on-demand troubleshooting, and cutting-edge techniques based on machine learning, these solutions work in harmony to provide operators with an understanding of the entire customer experience and allow them to troubleshoot network performance from a high to granular level while reducing storage costs and cloud resource utilization. For more information on how to RADCOMize your network today, please visit www.radcom.com , the content of which does not form a part of this press release. Non-GAAP Information Certain non-GAAP financial measures are included in this press release. These non-GAAP financial measures are provided to enhance the reader's overall understanding of the Company's financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718, financial income (expenses), acquisition-related expenses, and amortization of intangible assets related to acquisitions, the Company's non-GAAP results provide information to both management and investors that is useful in assessing the Company's core operating performance and in evaluating and comparing the Company's results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to evaluate financial results and to plan and forecast future periods. The presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with GAAP. Risks Regarding Forward-Looking Statements 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 Litigation Reform Act of 1995 and other securities laws. For example, when the Company discusses its full-year 2024 revenue guidance and expectations regarding delivering on customer commitments, driving the business forward to deliver revenue growth, and increasing profitability, it uses forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that could cause the actual results, performance, or achievements of the Company to be materially different from those that may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, decline in demand for the Company's products, inability to timely develop and introduce new technologies, products, and applications, loss of market share and pressure on prices resulting from competition and the effects of the war in Israel . For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the U.S. Securities and Exchange Commission . The Company does not undertake to revise or update any forward-looking statements for any reason. RADCOM Ltd. Consolidated Statements of Operations Unaudited (thousands of U.S. dollars, except share and per share data) Three months ended March 31 , 2024 2023 Revenues $ 14,123 $ 12,023 Cost of revenues 3,751 3,348 Gross profit 10,372 8,675 Research and development, gross 4,593 4,769 Less - royalty-bearing participation 209 262 Research and development, net 4,384 4,507 Sales and marketing 4,285 3,313 General and administrative 2,013 1,229 Total operating expenses 10,682 9,049 Operating loss (310) (374) Financial income, net 1,105 1,026 Income before taxes on income 795 652 Taxes on income (33) (31) Net income $ 762 $ 621 Basic and diluted net income per $ 0.05 $ 0.04 ordinary share 15,427,514 14,891,425 Weighted average number of ordinary shares used in computing basic net income per ordinary share Weighted average number of 15,866,910 15,569,410 ordinary shares used in computing diluted net income per ordinary share RADCOM LTD. Reconciliation of GAAP to Non-GAAP Financial Information Unaudited (thousands of U.S. dollars, except share and per share data) Three months ended March 31 , 2024 2023 GAAP gross profit $ 10,372 $ 8,675 Stock-based compensation 84 89 Amortization of intangible assets 56 - Non-GAAP gross profit $ 10,512 $ 8,764 $ 4,384 $ 4,507 GAAP research and development, net Stock-based compensation 537 545 Non-GAAP research and development, net $ 3,847 $ 3,962 $ 4,285 $ 3,313 GAAP sales and marketing Stock-based compensation 504 308 Amortization of intangible assets 29 - Non-GAAP sales and marketing $ 3,752 $ 3,005 $ 2,013 $ 1,229 GAAP general and administrative Stock-based compensation 839 265 Non-GAAP general and administrative $ 1,174 $ 964 $ 10,682 $ 9,049 GAAP total operating expenses Stock-based compensation 1,880 1,118 Amortization of intangible assets 29 - Non-GAAP total operating expenses $ 8,773 $ 7,931 $ (310) $ (374) GAAP operating loss Stock-based compensation 1,964 1,207 Amortization of intangible assets 85 - Non-GAAP operating income $ 1,739 $ 833 $ 795 $ 652 GAAP income before taxes on income Stock-based compensation 1,964 1,207 Amortization of intangible assets 85 - Financial expenses 37 - Non-GAAP income before taxes on income $ 2,881 $ 1,859 $ 762 $ 621 GAAP net income Stock-based compensation 1,964 1,207 Amortization of intangible assets 85 - Financial expenses 37 - Non-GAAP net income $ 2,848 $ 1,828 $ 0.05 $ 0.04 GAAP net income per diluted share Stock-based compensation 0.12 0.08 Amortization of intangible assets 0.01 - Financial expenses (*) - Non-GAAP net income per diluted share $ 0.18 $ 0.12 Weighted average number of shares used to compute diluted net income per share 15,866,910 15,569,410 (*) Less than $ 0.01 RADCOM Ltd. Consolidated Balance Sheets (thousands of U.S. dollars) As of As of March 31 , December 31 , 2024 2023 Current Assets Cash and cash equivalents $ 8,139 $ 10,892 Short-term bank deposits 77,126 71,273 Trade receivables, net 14,829 13,412 Inventories 975 246 Other accounts receivable and prepaid expenses 1,469 1,592 102,538 97,415 Total Current Assets Non-Current Assets Severance pay fund 3,118 3,142 Other long-term receivables 1,209 1,573 Property and equipment, net 787 798 Operating lease right-of-use assets 1,373 1,651 Goodwill and intangible assets, net 2,865 2,950 9,352 10,114 Total Non-Current Assets Total Assets $ 111,890 $ 107,529 Liabilities and Shareholders' Equity Current Liabilities Trade payables $ 3,677 $ 2,640 Deferred revenues and advances from customers 2,986 1,469 Employee and payroll accruals 4,911 5,400 Operating lease liabilities 838 1,062 Other liabilities and accrued expenses 9,213 9,540 21,625 20,111 Total Current Liabilities Non-Current Liabilities Accrued severance pay 3,780 3,728 Operating lease liabilities 490 561 Other liabilities and accrued expenses 671 638 4,941 4,927 Total Non-Current Liabilities Total Liabilities $ 26,566 $ 25,038 Shareholders' Equity Share capital $ 747 $ 736 Additional paid-in capital 156,651 154,697 Accumulated other comprehensive loss (2,924) (3,030) Accumulated deficit (69,150) (69,912) Total Shareholders' Equity 85,324 82,491 $ 111,890 $ 107,529 Total Liabilities and Shareholders' Equity View original content: https://www.prnewswire.com/news-releases/radcom-delivers-strong-first-quarter-results-with-17-5-y-o-y-revenue-growth-302146143.html SOURCE RADCOM Ltd.