Voca CIC powers millions of healthcare voice interactions across the United States through Atento, one of the world's top five Business Process Outsourcing providers OR YEHUDA, Israel, December 15, 2025 /PRNewswire/ -- Highlights Details AudioCodes (NASDAQ: AUDC), a leading vendor of advanced communications software, products and AI- powered solutions for the digital workplace and customer experience, today announced that its Voca Conversational Interaction Center (Voca CIC), working with Go2Uno, a business ...

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Company Ratings - **HP Inc (NYSE:HPQ)**: - Dividend Yield: 5.06% - Morgan Stanley analyst Erik Woodring downgraded the stock from Overweight to Equal-Weight, reducing the price target from $26 to $24 [7] - Citigroup analyst Asiya Merchant maintained a Neutral rating, cutting the price target from $29 to $27 [7] - Upcoming earnings announcement on Nov. 25, 2025 [7] - **Skyworks Solutions Inc (NASDAQ:SWKS)**: - Dividend Yield: 4.50% - Mizuho analyst Vijay Rakesh upgraded the stock from Underperform to Neutral, raising the price target from $65 to $73 [7] - UBS analyst Timothy Arcuri maintained a Neutral rating, lowering the price target from $85 to $80 [7] - Reported better-than-expected fourth-quarter earnings on Nov. 4, 2025 [7] - **AudioCodes Ltd (NASDAQ:AUDC)**: - Dividend Yield: 4.16% - Barclays analyst Ryan Macwilliams maintained an Underweight rating, increasing the price target from $9 to $10 [7] - Needham analyst Ryan Koontz maintained a Buy rating, raising the price target from $11 to $12.5 [7] - Posted upbeat third-quarter earnings on Nov. 4, 2025 [7]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $61.5 million, an increase of 2.2% from $60.2 million in Q3 2024 [7] - Services revenues decreased by 4.8% year-over-year to $30.9 million, accounting for 50.3% of total revenues [7] - GAAP gross margin improved to 65.5% from 65.2% in Q3 2024, while non-GAAP gross margin was 65.8%, up from 65.6% [9][23] - Operating income was $4.1 million (6.6% of revenues), down from $4.9 million (8.1% of revenues) in Q3 2024 [8] - Non-GAAP operating income decreased to $5.8 million (9.5% of revenues) from $7 million (11.7% of revenues) in Q3 2024 [9] - Net income remained stable at $2.7 million, with diluted earnings per share increasing to $0.10 from $0.09 [9] - Cash and equivalents totaled $79.7 million at the end of September 2025 [10] Business Line Data and Key Metrics Changes - The conversational AI business grew by 50% in Q3 2025, contributing to a strong annual recurring revenue (ARR) of $75 million, up 25% year-over-year [12][13] - The Live family of unified communication and collaboration services accounted for over 90% of total revenue [12] - The backlog at the end of Q3 was $76 million, a 13.4% increase from $67 million a year ago [14] Market Data and Key Metrics Changes - Revenue by geographical region: North America 48%, EMEA 33%, Asia-Pacific 15%, Central and Latin America 4% [8] - The voice bot market is projected to grow from $4.3 billion in 2024 to over $25 billion by 2034, with a compound annual growth rate of 20% [19] Company Strategy and Development Direction - The company is transforming into an AI-driven hybrid cloud software and services provider, focusing on UCaaS and CCaaS connectivity [12] - A strategic agreement was signed with a global Tier 1 system integrator to enhance service delivery and expand market reach [15] - The company aims to leverage its strong connectivity install base to drive cross-sales of value-added services [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strong ARR momentum and growth prospects, supported by a robust pipeline of opportunities [13] - The company expects revenues for 2025 to be between $244 million and $246 million, with non-GAAP earnings per share projected at $0.60 to $0.64 [11] - Management noted that the UCaaS market has stabilized, with significant growth potential remaining in the non-UCaaS market [25] Other Important Information - The company declared a cash dividend of $0.20 per share, totaling approximately $5.6 million, paid on August 28, 2025 [10] - The impact of new tariffs on U.S. imports added approximately $500,000 in costs for Q3 2025 [8] Q&A Session Summary Question: Insights on the global tier-one system integrator win - The significance of the Live Platform as a comprehensive service delivery platform for UCaaS and CX was highlighted, enabling large system integrators to modernize enterprise communication [40][41] Question: Pricing power in the AI solutions market - The emerging voice AI market currently does not face price pressure, allowing for continued enhancement and feature addition without compromising pricing [43] Question: Trends in Microsoft business growth - The UCaaS market has flattened recently, but there remains significant room for growth as a large portion of the market is still served by legacy PBX technology [44] Question: Performance of product revenue in the quarter - Strong product revenue growth was primarily driven by software related to voice AI solutions [45]

Financial Performance - Total revenues reached $61.5 million, a 2.2% year-over-year increase compared to $60.2 million in 3Q'24 [8] - Non-GAAP gross margin was 65.8%, slightly up from 65.6% in 3Q'24 [8] - Non-GAAP operating margin stood at 9.5%, compared to 11.7% in 3Q'24 [8] - Non-GAAP EBITDA margin was 11.2%, down from 13.1% in 3Q'24 [8] - Non-GAAP EPS was $0.17, a slight increase from $0.16 in 3Q'24 [8] - The company's Live ARR increased by approximately 25% year-over-year [10] Business Segment Performance - Customer Experience (CX) business experienced a 13% year-over-year increase [10] - Conversational AI business saw a significant 50% year-over-year increase [10] - Microsoft Teams business decreased by 1.4% year-over-year, but increased 4% for the first nine months of 2025 [10] Additional Financial Data - Non-GAAP net income was $4.882 million for the three months ended September 30, 2025, compared to $5.681 million for the same period in 2024 [27]

Core Insights - AudioCodes reported a revenue increase of 2.2% year-over-year for Q3 2025, reaching $61.5 million compared to $60.2 million in Q3 2024 [2][6] - The company achieved a 50% growth in its Conversational AI (CAI) business, contributing to an Annual Recurring Revenue (ARR) of $75 million, a 25% year-over-year increase [8][9] - AudioCodes' strategic focus on AI-driven, hybrid cloud software and services is evident in its ongoing transformation and investment in high-growth areas [6][11] Financial Performance - EBITDA for Q3 2025 was $5.2 million, down from $5.9 million in Q3 2024; on a Non-GAAP basis, EBITDA was $6.9 million compared to $7.9 million [2][3] - Net income for Q3 2025 was $2.7 million, or $0.10 per diluted share, consistent with the previous year, while Non-GAAP net income was $4.9 million, or $0.17 per diluted share, up from $0.16 [3][6] - Cash and cash equivalents decreased to $79.7 million as of September 30, 2025, from $93.9 million at the end of 2024, primarily due to share repurchases and dividend payments [5][12] Business Segments - Services revenue for Q3 2025 was $30.9 million, accounting for 50.3% of total revenues, indicating a strong performance in service offerings [6] - The Live family of services for Unified Communications and Collaboration (UCC) and CAI business are identified as primary growth engines for the company [7][8] - The launch of the Live Platform has resulted in a significant agreement with a tier-1 system integrator, enhancing cross-selling opportunities [9] Shareholder Returns - The company declared a cash dividend of $0.20 per share, totaling approximately $5.6 million, paid on August 28, 2025 [12] - During Q3 2025, AudioCodes repurchased 1,267,436 ordinary shares at a cost of $12.7 million, reflecting its commitment to returning value to shareholders [6][12] Future Outlook - AudioCodes aims to achieve a full-year ARR target of $78-$82 million, supported by the growth in its CAI business and strategic investments [8][11] - The company has received court approval to repurchase up to $25 million of ordinary shares, valid through April 28, 2026, indicating ongoing confidence in its financial position [13]

Core Viewpoint - AudioCodes Ltd (AUDC) is currently under cautious observation with a Hold rating, reflecting concerns about its performance in the voice AI software sector [1]. Company Analysis - The last analysis on AudioCodes was conducted in February 2024, where the cautious stance was reiterated [1]. - The company is identified as an Israeli firm specializing in voice AI software [1]. Investment Strategy - The investment approach focuses on acquiring undervalued, profitable stocks with strong balance sheets and minimal debt [1]. - There is an emphasis on generating income through writing calls against positions when opportunities arise [1]. - Risk management strategies include position sizing and the use of trailing stop losses over time [1].

Core Points - AudioCodes will release its financial results for the Third Quarter 2025 on November 04, 2025, before the market opens on NASDAQ [1] - A conference call to discuss the results will take place on the same day at 8:30 a.m. Eastern Time, hosted by the President and CEO, Shabtai Adlersberg, and CFO, Niran Baruch [2] - Investors can access the call live via phone or webcast, with a replay available approximately two hours after the call [3] Company Overview - AudioCodes is a global leader in unified communications, voice, contact center, and conversational AI services, enhancing customer and employee experiences through improved communication and collaboration [5] - The company offers a wide range of products and SaaS services that ensure interoperability with major UCaaS and CCaaS platforms, including Microsoft Teams, Webex, and Zoom [5] - AudioCodes serves enterprises worldwide, including 65 Fortune 100 companies, focusing on productivity, collaboration, business process automation, compliance, and customer interaction [5]

Core Insights - AudioCodes Ltd. (AUDC) has launched the AI Agents module in Live Hub to improve customer satisfaction and time-to-resolution [1][7] - The AI Agents module allows enterprises to create, integrate, and operate large language model (LLM)-powered voice bots, enhancing customer engagement and reducing service costs [1][2] - Live Hub consolidates various functionalities such as Conversational IVR, Voice AI Agents, Live-Agent Assist, and real-time translation into a single cloud platform, facilitating seamless deployment of Voice AI [2][7] Company Overview - AudioCodes, established in 1992 and based in Lod, Israel, provides advanced communications software and productivity solutions for the digital workplace, including session border controllers and VoIP network routing solutions [3] - The company is positioned to benefit from the growing trend towards IP-based communications and aims to strengthen its market presence through a long-term partnership with Microsoft Corporation [4] Industry Context - The introduction of AI Agents is expected to enhance voice automation capabilities at scale, improving caller authentication and workflow efficiency [2][7] - Other key players in the communications space include Ooma, Inc. and Harmonic Inc., both of which are focusing on cloud-based solutions and innovative product offerings to drive growth [5][6]

Core Insights - AudioCodes has launched a new module called AI Agents for its Live Hub Voice CPaaS, enabling enterprises to create and manage LLM-powered voice bots, which can enhance customer engagement and reduce operational costs [2][6][8] Industry Context - The customer support industry is facing challenges such as rising costs, staffing constraints, and increasing customer expectations, prompting a shift towards Voice AI to automate routine calls and improve service efficiency [3] Product Features - The Live Hub platform integrates various applications including Conversational IVR, Voice AI Agents, Live-Agent Assist, and real-time translation, allowing enterprises to leverage existing telephony systems without needing extensive upgrades [4][8] - AI Agents facilitate natural conversations, secure API integration, and modular workflow orchestration, which can lead to improved customer satisfaction and faster resolution times [9] Business Impact - The introduction of AI Agents is expected to significantly enhance AudioCodes' Voice AI business, positioning the company for future growth by providing a unified platform for modernizing customer interactions [6][10]

Core Insights - AudioCodes' Voca Conversational Interaction Center (CIC) has been certified for Microsoft Teams, enhancing its integration capabilities with Teams Phone [2][6] - The Voca CIC is built on Azure Communication Services, providing standardized access to Microsoft Azure AI Foundry and achieving a service availability target of 99.999% [3][4] - The solution has received multiple awards, including the Best Microsoft Teams Contact Center in the UC Today 2025 Awards, highlighting its commitment to customer experience [5][6] Company Overview - AudioCodes is a leader in unified communications, voice, contact center, and conversational AI services, enabling enterprises to enhance customer and employee experiences [9] - The company serves a global clientele, including 65 Fortune 100 companies, and offers a range of products that ensure interoperability with major UCaaS and CCaaS platforms [9] Product Features - Voca CIC allows for rapid customer onboarding and provides advanced conversational AI capabilities such as interaction summarization and sentiment analysis [4][6] - The solution is available for a 30-day free trial, allowing new customers to quickly build a conversational contact center with AI and omnichannel features [7]