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
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:
He added, "Also, a
This gives us the confidence to raise the lower end of our 2024 revenue guidance to
Earnings Conference Call
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:
917-607-8654
msegal@ms-ir.com
Company Contact:
CFO
+972-77-7745062
hadar.rahav@radcom.com
About
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
|
|||
Consolidated Statements of Operations |
|||
Unaudited |
|||
(thousands of |
|||
|
Three months ended |
||
|
|||
|
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 |
|||
|
|
|
|
|
|||
Reconciliation of GAAP to Non-GAAP Financial Information |
|||
Unaudited |
|||
(thousands of |
|||
|
Three months ended |
||
|
|||
|
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 |
|
|
|
|
|
|
|
|
|||
Consolidated Balance Sheets |
|||
(thousands of |
|||
|
As of |
|
As of |
|
|
|
|
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 |
|
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