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, Jan. 31,
2024 /PRNewswire/ -- 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/.
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.
RADCOM
Ltd.
|
Consolidated
Statements of Operations
Unaudited
|
|
(thousands of U.S.
dollars, except share and per share data)
|
|
|
|
Three months ended
December 31,
|
|
Twelve months ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues
|
$
14,010
|
|
$
12,289
|
|
$
51,600
|
|
$
46,051
|
Cost of
revenues
|
3,435
|
|
3,391
|
|
13,773
|
|
12,714
|
Gross profit
|
10,575
|
|
8,898
|
|
37,827
|
|
33,337
|
Research and
development, gross
|
4,327
|
|
5,290
|
|
19,575
|
|
21,483
|
Less - royalty-bearing
participation
|
190
|
|
160
|
|
736
|
|
762
|
Research and
development, net
|
4,137
|
|
5,130
|
|
18,839
|
|
20,721
|
Sales and
marketing
|
3,720
|
|
3,281
|
|
14,592
|
|
12,270
|
General and
administrative
|
1,297
|
|
1,225
|
|
5,058
|
|
4,460
|
Total operating
expenses
|
9,154
|
|
9,636
|
|
38,489
|
|
37,451
|
Operating income
(loss)
|
1,421
|
|
(738)
|
|
(662)
|
|
(4,114)
|
Financial income,
net
|
1,248
|
|
751
|
|
4,557
|
|
2,016
|
Income (loss) before
taxes on income
|
2,669
|
|
13
|
|
3,895
|
|
(2,098)
|
Taxes on
income
|
(77)
|
|
(39)
|
|
(182)
|
|
(159)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
2,592
|
|
$
(26)
|
|
$
3,713
|
|
$
(2,257)
|
|
|
|
|
|
|
|
|
Basic net
income
(loss) per ordinary
share
|
$
0.17
|
|
$
(0.00)
|
|
$
0.25
|
|
$
(0.16)
|
Diluted net income
(loss) per
ordinary
share
|
$
0.17
|
|
$
(0.00)
|
|
$
0.24
|
|
$
(0.16)
|
Weighted average number
of ordinary shares used in
computing basic net income (loss) per ordinary share
|
15,291,917
|
|
14,717,096
|
|
15,098,642
|
|
14,525,449
|
Weighted average number
of ordinary shares used in
computing diluted net income (loss) per ordinary share
|
15,446,177
|
|
14,717,096
|
|
15,297,947
|
|
14,525,449
|
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
December 31,
|
|
Twelve months
ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP gross
profit
|
$
10,575
|
|
$
8,898
|
|
$
37,827
|
|
$
33,337
|
Stock-based compensation
|
71
|
|
100
|
|
441
|
|
392
|
Amortization of
intangible assets
|
57
|
|
-
|
|
151
|
|
-
|
Non-GAAP
gross profit
|
$
10,703
|
|
$
8,998
|
|
$
38,419
|
|
$
33,729
|
GAAP research and
development, net
|
$
4,137
|
|
$
5,130
|
|
$
18,839
|
|
$
20,721
|
Stock-based compensation
|
424
|
|
602
|
|
2,690
|
|
2,497
|
Non-GAAP
research and development, net
|
$
3,713
|
|
$
4,528
|
|
$
16,149
|
|
$
18,224
|
GAAP sales and
marketing
|
$
3,720
|
|
$
3,281
|
|
$
14,592
|
|
$
12,270
|
Stock-based compensation
|
370
|
|
361
|
|
1,820
|
|
1,387
|
Amortization of
intangible assets
|
29
|
|
-
|
|
77
|
|
-
|
Non-GAAP
sales and marketing
|
$
3,321
|
|
$
2,920
|
|
$
12,695
|
|
$
10,883
|
GAAP general and
administrative
|
$
1,297
|
|
$
1,225
|
|
$
5,058
|
|
$
4,460
|
Stock-based compensation
|
319
|
|
283
|
|
1,169
|
|
895
|
Acquisition related
expenses
|
-
|
|
-
|
|
56
|
|
-
|
Non-GAAP
general and administrative
|
$
978
|
|
$
942
|
|
$
3,833
|
|
$
3,565
|
GAAP total operating
expenses
|
$
9,154
|
|
$
9,636
|
|
$
38,489
|
|
$
37,451
|
Stock-based compensation
|
1,113
|
|
1,246
|
|
5,678
|
|
4,779
|
Amortization of
intangible assets
|
29
|
|
-
|
|
77
|
|
-
|
Acquisition related
expenses
|
-
|
|
-
|
|
56
|
|
-
|
Non-GAAP
total operating expenses
|
$
8,012
|
|
$
8,390
|
|
$
32,678
|
|
$
32,672
|
GAAP operating income
(loss)
|
$
1,421
|
|
$
(738)
|
|
$
(662)
|
|
$
(4,114)
|
Stock-based compensation
|
1,184
|
|
1,346
|
|
6,119
|
|
5,171
|
Amortization of
intangible assets
|
86
|
|
-
|
|
228
|
|
-
|
Acquisition related
expenses
|
-
|
|
-
|
|
56
|
|
-
|
Non-GAAP
operating income
|
$
2,691
|
|
$
608
|
|
$
5,741
|
|
$
1,057
|
|
|
|
|
Three months
ended
December 31,
|
|
Twelve months
ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP income (loss)
before taxes on income
|
$
2,669
|
|
$
13
|
|
$
3,895
|
|
$
(2,098)
|
Stock-based compensation
|
1,184
|
|
1,346
|
|
6,119
|
|
5,171
|
Amortization of
intangible assets
|
86
|
|
-
|
|
228
|
|
-
|
Acquisition related
expenses
|
-
|
|
-
|
|
56
|
|
-
|
Financial (income)
expenses
|
(15)
|
|
-
|
|
60
|
|
-
|
Non-GAAP
income before taxes on income
|
$
3,924
|
|
$
1,359
|
|
$
10,358
|
|
$
3,073
|
GAAP net income
(loss)
|
$
2,592
|
|
$
(26)
|
|
$
3,713
|
|
$
(2,257)
|
Stock-based compensation
|
1,184
|
|
1,346
|
|
6,119
|
|
5,171
|
Amortization of
intangible assets
|
86
|
|
-
|
|
228
|
|
-
|
Acquisition related
expenses
|
-
|
|
-
|
|
56
|
|
-
|
Financial (income)
expenses
|
(15)
|
|
-
|
|
60
|
|
-
|
Non-GAAP net
income
|
$
3,847
|
|
$
1,320
|
|
$
10,176
|
|
$
2,914
|
GAAP net income
(loss) per diluted share
|
$
0.17
|
|
$
(0.00)
|
|
$
0.24
|
|
$
(0.16)
|
Stock-based compensation
|
0.08
|
|
0.09
|
|
0.43
|
|
0.35
|
Amortization of
intangible assets
|
(*)
|
|
-
|
|
(*)
|
|
-
|
Acquisition related
expenses
|
(*)
|
|
-
|
|
(*)
|
|
-
|
Non-GAAP net income
per diluted share
|
$
0.25
|
|
$
0.09
|
|
$
0.67
|
|
$
0.19
|
|
|
Weighted average number
of shares used to compute diluted net income (loss) per
share
|
15,446,177
|
|
15,329,035
|
|
15,297,947
|
|
14,997,667
|
|
|
|
|
|
|
|
|
(*) Less than $
0.01
|
RADCOM Ltd.
Consolidated Balance Sheets
Unaudited
(thousands of U.S.
dollars)
|
|
As of
|
|
As of
|
|
December 31,
2023
|
|
December 31,
2022
|
Current Assets
|
|
|
|
Cash and cash equivalents
|
$
10,892
|
|
$
9,527
|
Short-term bank deposits
|
71,273
|
|
64,130
|
Trade receivables, net
|
13,412
|
|
11,074
|
Inventories
|
246
|
|
795
|
Other accounts receivable and prepaid expenses
|
1,592
|
|
1,928
|
Total Current Assets
|
97,415
|
|
87,454
|
|
|
|
|
Non-Current Assets
|
|
|
|
Long-term bank deposits
|
-
|
|
4,002
|
Severance pay fund
|
3,142
|
|
3,524
|
Other long-term receivables
|
1,573
|
|
2,557
|
Property and equipment, net
|
798
|
|
1,010
|
Operating lease right-of-use assets
|
1,651
|
|
2,457
|
Goodwill and intangible assets, net
|
2,950
|
|
-
|
Total Non-Current Assets
|
10,114
|
|
13,550
|
|
|
|
|
Total Assets
|
$
107,529
|
|
$
101,004
|
|
|
|
|
Liabilities and Shareholders'
Equity
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
Trade
payables
|
$
2,640
|
|
$
2,708
|
Deferred revenues and advances from customers
|
1,469
|
|
7,037
|
Employee and payroll accruals
|
5,400
|
|
5,198
|
Operating lease liabilities
|
1,062
|
|
1,024
|
Other liabilities and accrued expenses
|
9,540
|
|
6,829
|
Total Current Liabilities
|
20,111
|
|
22,796
|
|
|
|
|
Non-Current Liabilities
|
|
|
|
Accrued severance
pay
|
3,728
|
|
3,973
|
Operating lease liabilities
|
561
|
|
1,452
|
Other liabilities and accrued expenses
|
638
|
|
-
|
Total Non-Current Liabilities
|
4,927
|
|
5,425
|
|
|
|
|
Total Liabilities
|
$
25,038
|
|
$
28,221
|
|
|
|
|
Shareholders' Equity
|
|
|
|
Share capital
|
$
736
|
|
$
706
|
Additional paid-in
capital
|
154,697
|
|
148,610
|
Accumulated other comprehensive loss
|
(3,030)
|
|
(2,908)
|
Accumulated
deficit
|
(69,912)
|
|
(73,625)
|
|
|
|
|
Total Shareholders' Equity
|
82,491
|
|
72,783
|
Total Liabilities and Shareholders'
Equity
|
$
107,529
|
|
$
101,004
|
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content:https://www.prnewswire.com/news-releases/radcom-delivers-strong-fourth-quarter-and-record-full-year-2023-results-with-revenue-growth-and-accelerated-profitability-302049215.html
SOURCE RADCOM Ltd.