The following is a summary of the AudioCodes Ltd. (AUDC) Q3 2024 Earnings Call Transcript:
Financial Performance:
Q3 2024 revenue was $60.2 million, marginally down from $60.3 million in Q2 2024.
Non-GAAP gross margin stood at 65.6%, slightly down from 65.8% in the previous quarter.
Non-GAAP operating income was $7 million, representing 11.7% of revenues, a slight decrease from 11.9% in Q2 2024.Non-GAAP net income for Q3 was $4.9 million, or $0.16 per diluted share, down from $5.5 million, or $0.18 per diluted share in Q2 2024.
Business Progress:
Continued transformation towards a UCaaS and CCaaS cloud software and services company.
Achieved a 21.4% year-over-year growth in recurring Teams Live business, now accounting for 45% of the Teams business.
Launched Meeting Insights and expanded Voca CIC, enhancing AI capabilities in conversational AI and customer interactions.
Increased annual recurring revenue by 40% year-over-year to $60 million.
Opportunities:
Expansion in Microsoft business and conversational AI, backed by strategic partnerships and investments.
Anticipated long-term growth powered by Teams Phone and conversational AI initiatives, given the vast gap between Microsoft Teams monthly active users and Teams Phone PSTN users.
Prospects for upselling in the organizational and educational sectors through enhanced UCaaS and CCaaS functionalities.
Risks:
Challenging transitional phase from CapEx to OpEx may affect near-term top-line growth, with a muted revenue performance expected as traditional CapEx sales decline.
Potential impact of subscription model on revenue recognitions, affecting short-term financial performance, especially as legacy businesses decrease.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
