- Record quarterly revenue of $13.2 million
- Significantly improved profitability
- 17th consecutive quarter of year-over-year revenue growth
- On track to exceed $50 million annual revenue
TEL AVIV, Israel – November 8, 2023 − RADCOM Ltd. (Nasdaq: RDCM) announced financial results for the third quarter ended September 30, 2023.
Eyal Harari, RADCOM’s Chief Executive Officer, commented, “We achieved record quarterly revenues of $13.2 million, up 10% year-over-year, and delivered a seventeenth consecutive quarter of year-over-year revenue growth, continuing the positive momentum from the first half of the year. Strong team execution led to good financial performance, driving revenue growth and bringing measurable improvements to our bottom line.
“We believe fourth quarter 2023 revenue growth and profitability improvements will continue and extend into 2024, as we provide operators with AI-powered analytics to ensure excellent customer experiences. This reinforces our guidance estimate that we will deliver a fourth consecutive year of growth in 2023 and scale up to a mid-size software company for the first time in the Company’s history.
“Operators continue to roll out 5G and invest in their networks. The market direction is clear, while the pace may vary. We are engaged in multiple opportunities at different stages of maturity. These engagements include a mix of new and current customers as operators continue their 5G transformation. Therefore, we increase our investment in sales and marketing to meet the expected demand for our carrier-grade solutions.”
Mr. Harari concluded, “The progress we have made in our overall business strategy and sales engagements demonstrates the value of our advanced technology and the strength of our business. Therefore, we are reiterating our 2023 guidance, expecting revenue to be in the range of $50 million to $53 million.”
- Total revenue for the third quarter was $13.2 million, compared to $12.0 million in the third quarter of 2022.
- GAAP net loss for the third quarter was $0.3 million. The loss resulted from a one-time expense of $1.3 million due to a change in the forfeiture rate estimation. This reflects the company’s success in retaining its key employees and the efficiency of the restricted share unit (RSU) grant plan from October 2021.
- GAAP net loss for the third quarter was $0.3 million, or $0.02 per diluted share, compared to a GAAP net loss of $0.4 million or $0.03 per diluted share for the third quarter of 2022.
- Non-GAAP net income for the third quarter was $2.4 million, or $0.15 per diluted share, compared to a non-GAAP net income of $1.0 million or $0.06 per diluted share for the third quarter of 2022.
- GAAP net income for the first nine months was $1.1 million, or $0.07 per diluted share, compared to a GAAP net loss of $2.2 million, or $0.15 per diluted share, for the first nine months of 2022.
- Non-GAAP net income for the first nine months was $6.3 million, or $0.40 per diluted share, compared to a non-GAAP net income of $1.6 million, or $0.11 per diluted share for the first nine months of 2022.
- As of September 30, 2023, the Company had cash, cash equivalents, and short-term bank deposits of $78.6 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/.
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, acquisition-related expenses, and amortization of intangible acquisitions assets, 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 2023 revenue guidance, further increase to revenues and profitability in 2024, the potential to scale up to a mid-size software company, its ability to extend RADCOM’s market availability to further potential customers, market trends in the adoption of 5G networks, its momentum, opportunities, expected demand, and potential growth as well as its expectation to increase in expenses on sales and marketing, 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 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.