- Revenue grew 13% year-over-year to $12 million
- GAAP Net income of $0.6 million
- Non-GAAP Net income of $1.8 million
TEL AVIV, Israel – May 10, 2023 − RADCOM Ltd. (Nasdaq: RDCM) announced financial results for the first quarter ended March 31, 2023.
“We continued our strong momentum from 2022 into the first quarter of 2023 with a revenue increase of 13% compared to the same quarter last year, a fifteenth consecutive quarter of year-over-year growth.
Our solid performance and careful expense management improved all our profitability key performance indicators (KPIs). We also introduced some new product use cases built using advanced artificial intelligence (AI) for 5G, commented RADCOM’s Chief Executive Officer Eyal Harari.
Mr. Harari continued, “We significantly improved our profitability this quarter, tripling our non-GAAP net income compared to the first quarter of 2022 and achieving a 15% non-GAAP net margin (5% on a GAAP basis). In addition, our GAAP profitability reached a four-year high, driven by solid team execution and increased revenues.
“As previously announced during the quarter, we signed an agreement with a new customer in North America, expanding our market share and leveraging our success with the recent customers we secured in 2022. We believe this encouraging momentum will continue as operators look to our advanced cloud technology and AI-powered analytics to reduce operational expenses and streamline operations through automation.
“We also completed the acquisition of the assets of Continual Ltd. We believe adding Continual’s advanced mobility experience analytics, and intellectual property, will enrich our 5G assurance solution and create new opportunities for RADCOM in top-tier customers like Vodafone.
Mr. Harari concluded, “Based on our current visibility, innovative assurance solutions, and overall market opportunity, we believe all the foundations are in place for a strong 2023. We are reiterating our full-year 2023 revenue guidance of $50 – $53 million.”
First quarter 2023 financial highlights:
- Total revenues for the first quarter were $12.0 million, compared to $10.6 million in the first quarter of 2022.
- GAAP net income for the first quarter was $0.6 million, or $0.04 per diluted share, compared to a GAAP net loss of $0.6 million, or $0.04 per diluted share for the first quarter of 2022.
- Non-GAAP net income for the first quarter was $1.8 million, or $0.12 per diluted share, compared to a non-GAAP net income of $0.6 million or $0.04 per diluted share for the first quarter of 2022.
- As of March 31, 2023, the Company had cash, cash equivalents, and short-term bank deposits of $77.9 million and no debt.
Earnings Conference Call
RADCOM’s management will hold an interactive conference call today at 8:00 am Eastern Time (3:00 pm Israel 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
From other locations: +972-3-918-0644
For those unable to listen to the call, a replay of the conference call will be available a few hours later in the investor relations section on the Company’s website at https://radcom.com/investor-relations/.