RADCOM Delivers 20% YoY Revenue Growth and EPS up by 120%
- Highest quarterly revenues of
$14.8 million - Record half-year revenue and profitability
- Peak cash level of
$86.1 million
"Our net income increased by approximately 120%, driven by strong revenue growth. We maintained our positive cash flow generation, achieving a new milestone with our cash and cash equivalents reaching a record high of
"Since the start of the year, we have secured over
Key highlights Q2 2024:
- Total revenues for the second quarter were
$14.8 million , compared to$12.4 million in the second quarter of 2023, representing a 20% year-over-year growth, a new company record. -
GAAP net income for the second quarter was
$1.7 million , or$0.11 diluted EPS, compared to$0.8 million , or$0.05 diluted EPS, for the second quarter of 2023, representing an approximately 120% year-over-year increase compared to the second quarter of 2023. -
Non-GAAP net income for the period was
$3.1 million , or$0.20 diluted EPS, compared to$2.1 million , or$0.13 diluted EPS, for the second quarter of 2023. - As of
June 30, 2024 , the Company had cash, cash equivalents, and short-term bank deposits of$86.1 million and no debt, ending the quarter with its highest-ever cash levels.
Key highlights H1 2024
- Total revenues for the first six months were
$28.9 million , compared to$24.4 million in the first six months of 2023, representing a 19% year-over-year growth. -
GAAP net income for the first six months was
$2 .5 million, or$0 .16diluted EPS, compared to$1 .4 million, or$0 .09 diluted EPS for the first six months of 2023. -
Non-GAAP net income for the first six months was
$6.0 million , or$0.38 diluted EPS, compared to$3.9 million , or$0.25 diluted EPS, for the first six months of 2023.
"This gives us the confidence to raise our 2024 revenue guidance to
Earnings conference call and webcast
- Live webcast: A live webcast of the presentation will be available at https://Veidan.activetrail.biz/radcomq2-2024. The webcast will be archived for 90 days following the live presentation.
-
Joining the interactive call: Please dial in 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 conference call replay will be available a few hours after the call on
For all investor inquiries, please contact:
Investor Relations:
917-607-8654
msegal@ms-ir.com
Company Contact: Hadar Rahav
CFO
+972-77-7745062
hadar.rahav@radcom.com
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, market trends, and demand for the Company's products and services, expanding its sales pipeline, profitability, growth, and enhancing shareholder returns, 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
RADCOM Ltd. |
|||||||
Consolidated Statements of Operations |
|||||||
Unaudited |
|||||||
|
|||||||
(thousands of U.S. dollars, except share and per share data) |
|||||||
|
|||||||
|
Three months ended |
|
Six months ended |
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Revenues |
$ 14,801 |
|
$ 12,372 |
|
$ 28,924 |
|
$ 24,395 |
Cost of revenues |
3,794 |
|
3,480 |
|
7,545 |
|
6,828 |
Gross profit |
11,007 |
|
8,892 |
|
21,379 |
|
17,567 |
Research and development, gross |
4,621 |
|
4,952 |
|
9,214 |
|
9,721 |
Less - royalty-bearing participation |
180 |
|
180 |
|
389 |
|
442 |
Research and development, net |
4,441 |
|
4,772 |
|
8,825 |
|
9,279 |
Sales and marketing |
4,325 |
|
3,351 |
|
8,610 |
|
6,664 |
General and administrative |
1,361 |
|
1,215 |
|
3,374 |
|
2,444 |
Total operating expenses |
10,127 |
|
9,338 |
|
20,809 |
|
18,387 |
Operating income (loss) |
880 |
|
(446) |
|
570 |
|
(820) |
Financial income, net |
854 |
|
1,260 |
|
1,959 |
|
2,286 |
Income before taxes on income |
1,734 |
|
814 |
|
2,529 |
|
1,466 |
Taxes on income |
(27) |
|
(33) |
|
(60) |
|
(64) |
|
|
|
|
|
|
|
|
Net income |
$ 1,707 |
|
$ 781 |
|
$ 2,469 |
|
$ 1,402 |
|
|
|
|
|
|
|
|
Basic and diluted net income per ordinary share |
$ 0.11 |
|
$ 0.05 |
|
$ 0.16 |
|
$ 0.09 |
Weighted average number of ordinary shares used in computing |
15,608,402 |
|
15,063,112 |
|
15,517,958 |
|
14,977,743 |
Weighted average number of ordinary shares used in computing |
15,978,799 |
|
15,658,748 |
|
15,922,855 |
|
15,614,553 |
|
Three months
|
|
Six months
|
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
GAAP gross profit |
$ 11,007 |
|
$ 8,892 |
|
$ 21,379 |
|
$ 17,567 |
Stock-based compensation |
99 |
|
74 |
|
183 |
|
163 |
Amortization of intangible assets |
56 |
|
43 |
|
112 |
|
43 |
Non-GAAP gross profit |
$ 11,162 |
|
$ 9,009 |
|
$ 21,674 |
|
$ 17,773 |
|
|
|
|
|
|
|
|
GAAP research and development, net |
$ 4,441 |
|
$ 4,772 |
|
$ 8,825 |
|
$ 9,279 |
Stock-based compensation |
525 |
|
536 |
|
1,062 |
|
1,081 |
Non-GAAP research and development, net |
$ 3,916 |
|
$ 4,236 |
|
$ 7,763 |
|
$ 8,198 |
|
|
|
|
|
|
|
|
GAAP sales and marketing |
$ 4,325 |
|
$ 3,351 |
|
$ 8,610 |
|
$ 6,664 |
Stock-based compensation |
$ 485 |
|
328 |
|
989 |
|
636 |
Amortization of intangible assets |
$ 29 |
|
21 |
|
58 |
|
21 |
Non-GAAP sales and marketing |
$ 3,811 |
|
$ 3,002 |
|
$ 7,563 |
|
$ 6,007 |
|
|
|
|
|
|
|
|
GAAP general and administrative |
$ 1,361 |
|
$ 1,215 |
|
$ 3,374 |
|
$ 2,444 |
Stock-based compensation |
202 |
|
249 |
|
1,041 |
|
514 |
Acquisition related expenses |
- |
|
37 |
|
- |
|
37 |
Non-GAAP general and administrative |
$ 1,159 |
|
$ 929 |
|
$ 2,333 |
|
$ 1,893 |
|
|
|
|
|
|
|
|
GAAP total operating expenses |
$ 10,127 |
|
$ 9,338 |
|
$ 20,809 |
|
$ 18,387 |
Stock-based compensation |
1,212 |
|
1,113 |
|
3,092 |
|
2,231 |
Amortization of intangible assets |
29 |
|
21 |
|
58 |
|
21 |
Acquisition related expenses |
- |
|
37 |
|
- |
|
37 |
Non-GAAP total operating expenses |
$ 8,886 |
|
$ 8,167 |
|
$ 17,659 |
|
$ 16,098 |
|
|
|
|
|
|
|
|
GAAP operating income (loss) |
$ 880 |
|
$ (446) |
|
$ 570 |
|
$ (820) |
Stock-based compensation |
1,311 |
|
1,187 |
|
3,275 |
|
2,394 |
Amortization of intangible assets |
85 |
|
64 |
|
170 |
|
64 |
Acquisition related expenses |
- |
|
37 |
|
- |
|
37 |
Non-GAAP operating income |
$ 2,276 |
|
$ 842 |
|
$ 4,015 |
|
$ 1,675 |
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
|
|
Six months ended
|
||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
GAAP income before taxes on income |
$ 1,734 |
|
$ 814 |
|
$ 2,529 |
|
$ 1,466 |
Stock-based compensation |
1,311 |
|
1,187 |
|
3,275 |
|
2,394 |
Amortization of intangible assets |
85 |
|
64 |
|
170 |
|
64 |
Acquisition related expenses |
34 |
|
66 |
|
71 |
|
66 |
Non-GAAP income before taxes on income |
$ 3,164 |
|
$ 2,131 |
|
$ 6,045 |
|
$ 3,990 |
GAAP net income |
$ 1,707 |
|
$ 781 |
|
$ 2,469 |
|
$ 1,402 |
Stock-based compensation |
1,311 |
|
1,187 |
|
3,275 |
|
2,394 |
Amortization of intangible assets |
85 |
|
64 |
|
170 |
|
64 |
Acquisition related expenses |
34 |
|
66 |
|
71 |
|
66 |
Non-GAAP net income |
$ 3,137 |
|
$ 2,098 |
|
$ 5,985 |
|
$ 3,926 |
GAAP net income per diluted share |
$ 0.11 |
|
$ 0.05 |
|
$ 0.16 |
|
$ 0.09 |
Stock-based compensation |
0.08 |
|
0.08 |
|
0.21 |
|
0.16 |
Amortization of intangible assets |
0.01 |
|
(*) |
|
0.01 |
|
(*) |
Acquisition related expenses |
(*) |
|
(*) |
|
(*) |
|
(*) |
Non-GAAP net income per diluted share |
$ 0.20 |
|
$ 0.13 |
|
$ 0.38 |
|
$ 0.25 |
Weighted average number of shares used to |
15,978,799 |
|
15,658,748 |
|
15,922,855 |
|
15,614,553 |
|
|
|
|
|
|
|
|
(*) Less than |
|
|
|
|
|
|
|
Consolidated Balance Sheets
Unaudited |
|||
|
As of |
|
As of |
|
2024 |
|
2023 |
Current Assets |
|
|
|
Cash and cash equivalents |
$ 15,248 |
|
$ 10,892 |
Short-term bank deposits |
70,864 |
|
71,273 |
Trade receivables, net |
18,071 |
|
13,412 |
Inventories |
695 |
|
246 |
Other accounts receivable and prepaid expenses |
1,353 |
|
1,592 |
Total Current Assets |
106,231 |
|
97,415 |
|
|
|
|
Non-Current Assets |
|
|
|
Severance pay fund |
3,006 |
|
3,142 |
Other long-term receivables |
3,353 |
|
1,573 |
Property and equipment, net |
772 |
|
798 |
Operating lease right-of-use assets |
1,148 |
|
1,651 |
|
2,780 |
|
2,950 |
Total Non-Current Assets |
11,059 |
|
10,114 |
|
|
|
|
Total Assets |
$ 117,290 |
|
$ 107,529 |
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
Trade payables |
$ 3,400 |
|
$ 2,640 |
Deferred revenues and advances from customers |
4,140 |
|
1,469 |
Employee and payroll accruals |
5,397 |
|
5,400 |
Operating lease liabilities |
627 |
|
1,062 |
Other liabilities and accrued expenses |
10,449 |
|
9,540 |
Total Current Liabilities |
24,013 |
|
20,111 |
|
|
|
|
Non-Current Liabilities |
|
|
|
Accrued severance pay |
3,680 |
|
3,728 |
Operating lease liabilities |
472 |
|
561 |
Other liabilities and accrued expenses |
653 |
|
638 |
Total Non-Current Liabilities |
4,805 |
|
4,927 |
|
|
|
|
Total Liabilities |
$ 28,818 |
|
$ 25,038 |
|
|
|
|
Shareholders' Equity |
|
|
|
Share capital |
$ 755 |
|
$ 736 |
Additional paid-in capital |
157,954 |
|
154,697 |
Accumulated other comprehensive loss |
(2,794) |
|
(3,030) |
Accumulated deficit |
(67,443) |
|
(69,912) |
|
|
|
|
Total Shareholders' Equity |
88,472 |
|
82,491 |
Total Liabilities and Shareholders' Equity |
$ 117,290 |
|
$ 107,529 |
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