Fourth quarter revenue of $14.0 million, 14% year-over-year growth, and full-year revenue of $51.6 million, 12% year-over-year growth.
Record fourth quarter of $3.8 million non-GAAP net income and $10.2 million non-GAAP full year net income
TEL AVIV, Israel – January 31, 2024 − RADCOM Ltd. (Nasdaq: RDCM) announced financial results for the full year, and the fourth quarter ended December 31, 2023.
Fourth Quarter 2023 Financial Highlights:
- Total revenues for the fourth quarter were $14.0 million, compared to $12.3 million in the fourth quarter of 2022, 14% year-over-year growth.
- GAAP net income for the fourth quarter was $2.6 million, or $0.17 per diluted share, compared to a GAAP net loss of $0.03 million, or $0.00 per diluted share, for the fourth quarter of 2022.
- Non-GAAP net income for the period was $3.8 million, or $0.25 per diluted share, compared to a non-GAAP net income of $1.3 million, or $0.09 per diluted share, for the fourth quarter of 2022.
- As of December 31, 2023, the Company had cash and cash equivalents, short-term bank deposits of $82.2 million, and no debt, ending the year with its highest cash levels.
Full Year 2023 Financial Highlights:
- Total revenues for the full year were $51.6 million, compared to $46.1 million for 2022.
- GAAP net income for the full year was $3.7 million, or $0.24 per diluted share, compared to a GAAP net loss of $2.3 million, or $0.16 per diluted share, for 2022.
- Non-GAAP net income for the full year amounted to $10.2 million, or $0.67 per diluted share, compared to a non-GAAP net income of $2.9 million, or $0.19 per diluted share for the full year 2022.
Management Comments:
Eyal Harari, RADCOM’s Chief Executive Officer, commented on the results: «2023 was an exceptional, record year for RADCOM, continuing the last four years of growth momentum. We achieved a fourth consecutive year of growth with record revenue of $51.6 million, representing 12% growth year-over-year.
“We crossed the $50 million annual revenue threshold and scaled up to a mid-size software company for the first time. At the same time, we continued our path to sustained profitability, achieving a record net income for 2023 of $10.2 million on a non-GAAP basis, while our positive cash flow also reached a milestone totaling $82.2 million, with no debt.
«Recently, we proudly announced our position as one of the first assurance vendors to harness the power of GenAI for real-time and efficient management of 5G networks. Our market-leading solutions thoughtfully align with operators’ needs, providing a unique technology to address critical network challenges. This underscores the significance of our industry-leading solutions in the rapidly expanding 5G market. We are confident that our offerings will drive sustained growth.
Mr. Harari concluded, “Our record results and positive momentum demonstrate the value of our advanced technology and the strength of our business model. Looking at 2024, thanks to our strong execution and current visibility, we are confident in delivering a fifth consecutive year of revenue growth and increasing our profitability. Our full-year 2024 revenue guidance is $56 – $60 million.”
Earnings Conference Call
RADCOM’s management will hold an interactive conference call today at 8:00 am Eastern Time (3:00 pm Israel Standard Time) to discuss the results and answer participants’ questions. To join the 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 or +1-888-281-1167
From other locations: +972-3-918-0644
For those unable to listen, a conference call replay will be available a few hours later in the investor relations section on the Company’s website at https://radcom.com/investor-relations/.
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For all investor inquiries, please contact:
Investor Relations:
Miri Segal
MS-IR LLC
917-607-8654
msegal@ms-ir.com
Company Contact:
Hadar Rahav
CFO
+972-77-7745062
Hadar.Rahav@radcom.com
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 its growth, including sustainable, profitable growth, momentum, and the potential of GenAI, 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.