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RADCOM Delivers Strong First Quarter Results with 17.5% Y-o-Y Revenue Growth
[May 15, 2024]

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 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





 

Cision 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.


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