- Full year revenues of $40.3 million, 7% year-over-year growth, and a new all-time full year record
- Fourth quarter revenues of $11.2 million, 9% year-over-year growth, and a new all-time record quarter
- 10th consecutive quarter of year-over-year revenue growth
- Cash, cash equivalents, and short-term bank deposits of $70.6 million and no debt
TEL AVIV, Israel – February 24, 2022 − RADCOM Ltd. (Nasdaq: RDCM) today reported its financial results for the fourth quarter and full year ended December 31, 2021.
“The fourth quarter of 2021 represented a strong finish to a good fiscal year. We achieved our highest-ever quarterly and full-year revenue results, ending the year at the higher end of our guidance range with the majority of revenues coming from recurring revenues, which reflects our strategy to procure multi-year contracts and provides us good visibility,” said Eyal Harari, RADCOM’s Chief Executive Officer. “During the year, we successfully delivered on our customer commitments while moving our business forward by securing additional orders for our RADCOM ACE solution. We continued investing strategically in our cutting-edge 5G solution to extend our technological leadership within the 5G assurance space, releasing our innovative Artificial Intelligence capabilities while also integrating with hyperscalers such as Amazon and Microsoft so operators can roll out 5G services rapidly on the public cloud while ensuring service quality.
“The 5G market continues to ramp up. With increased investment across the market and more operators transitioning to 5G, we see more interest in our next-generation assurance solution, which is reflected in the double-digit growth in our sales pipeline since the beginning of 2021, with several opportunities evolving to an advanced stage of the sales cycle. We believe that the market momentum will drive additional demand for our solutions, increase our business and lead to further growth in the future. With our solid pipeline, innovative cloud technology, and market opportunity, we believe all the foundations are in place for a strong, growth year in 2022. Based on our current visibility, we are providing full-year 2022 revenue guidance of $42-$45 million.”
Fourth Quarter 2021 Financial Highlights:
- Total revenues for the fourth quarter were $11.2 million, compared to $10.2 million in the fourth quarter of 2020
- GAAP net loss for the fourth quarter was $1.4 million, or $0.10 per diluted share, compared to a GAAP net loss of $0.5 million, or $0.03 per diluted share, for the fourth quarter of 2020
- Non-GAAP net loss for the period was $0.2 million, or a loss of $0.02 per diluted share, compared to a non-GAAP net income of $0.1 million or an income of $0.01 per diluted share, for the fourth quarter of 2020
- As of December 31, 2021, the Company had cash and cash equivalents and short-term bank deposits of $70.6 million, and no debt, ending the year with its highest cash levels of the last three years.
Full Year 2021 Financial Highlights:
- Total revenues for the full year were $40.3 million, compared to $37.6 million for the full year of 2020
- GAAP net loss for the full year increased to $5.3 million, or $0.37 per diluted share, compared to a GAAP net loss of $4 million, or $0.29 per diluted share for the full year of 2020. GAAP net loss includes a negative impact from the strengthening of the New Israeli Shekel during 2021 and an increase in share-based compensation expenses in 2021 compared to 2020.
- Non-GAAP net loss for the full year amounted to $1.9 million, or $0.13 per diluted share, with no significant change from a non-GAAP net loss of $1.8 million, or a loss of $0.13 per diluted share for the full year of 2020. Non-GAAP net loss includes a negative impact from the strengthening of the New Israeli Shekel during 2021.
Earnings Conference Call
RADCOM’s management will hold an interactive conference call today at 7:30 AM Eastern Standard Time (2:30 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
From other locations: +972-3-918-0610
For those unable to listen to the call, a conference call replay will be available a few hours later on the Company’s investor relations 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 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, 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 sales opportunities, its positive outlook for 2022 and ability to deliver another growth year in 2022 and thereafter, the Company’s technological leadership position and the potential of its AI capabilities, increased demand, and expected growth in the 5G market, and expectations regarding demand for its solutions and its growth opportunities, sales cycles, and pipeline and its revenue guidance, it is using 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 the demand for the Company’s products, inability to timely develop and introduce new technologies, products, and applications, and loss of market share and pressure on prices resulting from competition. 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.