Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE AC ...

Core Insights - AudioCodes has introduced an omnichannel experience for its Voca Conversational Interaction Center (CIC), integrating email and webchat with existing voice capabilities to enhance customer interactions [1][2][4] - The Voca CIC is designed to provide a seamless customer experience across multiple channels from a single-screen Microsoft Teams contact center built in Azure [2][3] - This new feature allows agents to multitask effectively, managing their availability across different channels, thus ensuring that digital interactions receive equal attention as voice interactions [4][3] Company Overview - AudioCodes is a leading vendor of advanced communications software and solutions, enabling enterprises to build and operate all-IP voice networks for unified communications and contact centers [8] - The company is recognized for its innovative products and services, which are utilized by large multinational enterprises and tier-1 operators globally [8] Product Features - Voca CIC is an AI-first, Microsoft-certified contact center with Azure-native integration, allowing for rapid deployment and scalability [3][6] - The platform features a unique channel-specific status bar that automatically directs customer interactions to agents based on their availability and capacity [4][3] - AudioCodes offers a 30-day free trial of Voca CIC, allowing potential customers to evaluate its capabilities quickly [6]

The Voca Conversational Interaction Center (CIC) Secures Top Honors in the 2024 CX Awards, Winning the Best Microsoft Teams Contact Center Solution LOD, Israel, March 4, 2024 /PRNewswire/ -- Highlights AudioCodes Voca CIC is selected by 16 CX industry experts to win the CX Award 2024 for Best Microsoft Teams Contact Center Solution Judges were impressed with Voca CIC's unwavering reliability to provide a superior customer experience based on its Azure-native integration with Microsoft Teams Voca CIC is ce ...

The stock of enterprise voice services company AudioCodes (AUDC 14.21%) had a banner trading session on Tuesday. Following the company's release of its latest quarterly earnings report, investors piled into its shares, sending their value up in excess of 14%. That made it quite the outperformer on a day when the S&P 500 index only inched up by 0.2%.Fourth-quarter results publishedFor its fourth quarter, AudioCodes booked $63.6 million in revenue, which was down 10% on a year-over-year basis but represented ...

Financial Data and Key Metrics Changes - Revenues for Q4 2023 were $63.6 million, a 3.2% increase from $61.6 million in Q3 2023. Full year 2023 revenues decreased by 11.2% to $244.4 million from $275.1 million in 2022 [9][10] - GAAP gross margin for Q4 was 66.7%, slightly up from 66.5% in Q3 2023. Operating income for Q4 was $7.2 million (11.4% of revenues), compared to $5.8 million (9.4% of revenues) in Q3 2023 [11] - Full year 2023 net income was $8.8 million ($0.28 per diluted share), down from $28.5 million ($0.88 per diluted share) in 2022 [12] Business Line Data and Key Metrics Changes - Services revenues for Q4 were $30.9 million, accounting for 48.6% of total revenues. Annual services revenues increased by 8.7% to $120.4 million from $110.8 million in 2022 [10] - The SBC product line generated over $35 million in revenue for Q4, with full year revenue close to $130 million [22] - Customer experience revenue grew by approximately 20% year-over-year for the full year, now representing more than 20% of total business [20] Market Data and Key Metrics Changes - Revenue by geographical regions for Q4: North America 44%, EMEA 37%, Asia Pacific 14%, Central and Latin America 5% [10] - The company experienced a decline in service provider business, with a year-over-year decline of over 60% in Q4 and over 40% for the full year [23] Company Strategy and Development Direction - The company is shifting its business model towards subscription and recurring sales, aiming to increase software and service revenue mix to nearly 70% in 2023, up from 60% in 2022 [16] - Focus on AI-first voice-related software and applications is expected to drive future growth, particularly in the UCaaS and CCaaS markets [17][18] - The company aims to leverage its partnerships with leading application vendors like Microsoft to enhance its market position [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the pipeline for 2024 looks promising, with strong bookings in 2023 compared to 2022, despite a challenging macroeconomic environment [34][35] - The company anticipates revenue growth in 2024, with guidance of $252 million to $267 million, reflecting a mid-range growth of about 6% compared to 2023 [14][26] Other Important Information - The company declared a cash dividend of $0.18 per share, totaling approximately $5.5 million, to be paid on March 6, 2024 [14] - The company has received court approval to repurchase up to $20 million of its ordinary shares [14] Q&A Session Summary Question: How does your pipeline visibility now compare to what it was in 3Q? - Management indicated that there is not much difference in pipeline visibility, with a strong Q4 expected to lead to a slight decline in Q1 2024 [34] Question: How did CCaaS demand fare in the quarter? - Management reported a rise in opportunities in the CCaaS space, with significant deals won in North America [37] Question: What is driving the moderated growth rates from Microsoft? - The moderated growth is attributed to the global economic slowdown and the limited benefit from adding phone functionality to Microsoft Teams [41] Question: What are the penetration rates of voice licensing in the Teams environment? - Current estimates suggest that penetration rates are still below 15%, indicating significant growth potential [44] Question: How do you expect cash conversion to perform in 2024? - Management expects operating cash flow for 2024 to be better than in 2023, following a strong Q4 [46] Question: Can you provide insights on the macro environment and customer verticals? - Management noted that the macro environment remains uncertain, but they are optimistic about growth in the enterprise space, particularly in contact centers and conversational AI [59]

Exhibit 1 odes | --- | --- | |-----------------------------|------------------------------| | | AudioCodes Press \nRelease | | Company Contacts | | | Niran Baruch, | Roger L. Chuchen | | Chief Financial Officer | VP, Investor Relations | | AudioCodes | AudioCodes | | Tel: +972-3-976-4000 | Tel: 732-764-2552 | | niran.baruch@audiocodes.com | roger.chuchen@audiocodes.com | AudioCodes Reports Fourth Quarter and Full Year 2023 Results and Declares Semi-Annual Dividend of 18 cents per share Lod, Israel – Februar ...

AudioCodes (AUDC) came out with quarterly earnings of $0.28 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.67%. A quarter ago, it was expected that this communication components company would post earnings of $0.18 per share when it actually produced earnings of $0.25, delivering a surprise of 38.89%.Over the last four qu ...

Financial Performance - Quarterly revenues increased by 3.2% sequentially to $63.6 million, while full year 2023 revenues decreased by 11.2% to $244.4 million [1][2] - Quarterly service revenues of $30.9 million accounted for 48.6% of total revenues, with full year 2023 service revenues increasing by 8.7% to $120.4 million [1][2] - GAAP net income for the fourth quarter was $3.7 million, or $0.12 per diluted share, compared to $4.3 million, or $0.14 per diluted share in the prior quarter [1][2] - Full year 2023 GAAP net income was $8.8 million, or $0.28 per diluted share, down from $28.5 million, or $0.88 per diluted share in 2022 [2][3] Non-GAAP Results - Non-GAAP net income for the fourth quarter was $8.9 million, or $0.28 per diluted share, compared to $8.3 million, or $0.25 per diluted share in the prior quarter [3] - Full year 2023 Non-GAAP net income was $25.0 million, or $0.77 per diluted share, down from $45 million, or $1.35 per diluted share in 2022 [3] Cash Flow and Shareholder Returns - Net cash provided by operating activities was $9.3 million for the fourth quarter and $14.9 million for the full year [4][5] - The company repurchased 595,583 ordinary shares during the quarter at a total cost of $6.3 million [1][9] - A cash dividend of 18 cents per share was declared, amounting to approximately $5.5 million, payable on March 6, 2024 [10][11] Business Segments and Growth Areas - The enterprise segment accounted for roughly 90% of business in the fourth quarter, with Microsoft-related business growing 5% year-over-year [6] - Teams-related business grew 10% year-over-year, while AudioCodes Live managed services saw an ARR growth of 50% year-over-year, ending the quarter at $48 million [6] - Customer experience (CX) operations grew over 40% year-over-year in the fourth quarter, with conversational AI bookings growing over 50% [7] Operational Efficiency - Non-GAAP gross margin improved to 67.6%, while non-GAAP operating margin reached 16.9% in the quarter [8] - The company is focusing on transitioning to a subscription and recurring sales model, aiming for revenue growth and improved profitability in 2024 [8]

AudioCodes Ltd. (NASDAQ:AUDC) Q3 2023 Earnings Conference Call November 2, 2023 8:30 AM ET Company Participants Roger Chuchen - Vice President, Investor Relations Shabtai Adlersberg - President and Chief Executive Officer Niran Baruch - Vice President of Finance and Chief Financial Officer Conference Call Participants Ryan MacWilliams - Barclays Gregory Burns - Sidoti & Company Ryan Koontz - Needham & Company Samad Samana - Jefferies Operator Greetings. Welcome to AudioCodes Third Quarter 2023 Earnings Con ...

```markdown Financial Highlights and Business Overview [Third Quarter 2023 Financial Highlights](index=1&type=section&id=Third%20Quarter%202023%20Financial%20Highlights) AudioCodes reported third-quarter 2023 revenues of $61.6 million, a 2.6% sequential increase. Both GAAP and Non-GAAP metrics showed significant sequential improvement, with Non-GAAP net income reaching $8.3 million, or $0.25 per diluted share. The company continued its capital return program, declaring a dividend of $0.18 per share and repurchasing $9.0 million of its shares Q3 2023 vs Q2 2023 Performance | Metric | Q3 2023 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Revenues | $61.6M | $60.0M | +2.6% | | GAAP Operating Margin | 9.4% | 3.8% | +5.6 p.p. | | GAAP Net Income | $4.3M | $1.1M | +291% | | GAAP Diluted EPS | $0.14 | $0.03 | +$0.11 | | Non-GAAP Operating Margin | 15.5% | 9.5% | +6.0 p.p. | | Non-GAAP Net Income | $8.3M | $5.1M | +62.7% | | Non-GAAP Diluted EPS | $0.25 | $0.16 | +$0.09 | Q3 2023 vs Q3 2022 Performance | Metric | Q3 2023 | Q3 2022 | Change | | :--- | :--- | :--- | :--- | | Revenues | $61.6M | $69.7M | -11.6% | | GAAP Net Income | $4.3M | $5.4M | -20.4% | | Non-GAAP Net Income | $8.3M | $10.5M | -21.0% | - Service revenues constituted **49.6%** of total revenues at **$30.6 million** for the quarter[2](index=2&type=chunk) - The company declared a cash dividend of **18 cents per share** and repurchased **880,457** of its ordinary shares for **$9.0 million** during the quarter[2](index=2&type=chunk) [Management Commentary and Business Performance](index=3&type=section&id=Management%20Commentary%20and%20Business%20Performance) Management highlighted strong performance in strategic areas, with the enterprise business now accounting for a record 90% of total revenues. Significant year-over-year growth was seen in the Microsoft-related business, AudioCodes Live managed services, and conversational AI bookings. Despite geopolitical events in Israel, the company's global operations remain undisrupted, and management is confident in returning to top-line growth in 2024 - The enterprise business grew to a record **90%** of the company's total revenues[7](index=7&type=chunk) Year-over-Year Growth in Strategic Areas (Q3 2023) | Business Segment | YoY Growth | | :--- | :--- | | Microsoft-related Business | 13% | | Microsoft Teams Business | 21% | | AudioCodes Live ARR | >50% | | Customer Experience (CX) | 13% | | Conversational AI Bookings | >50% | - AudioCodes Live managed services are on track to achieve the 2023 target of **$46-$50 million** in Annual Recurring Revenue (ARR), ending Q3 at **$43 million**[7](index=7&type=chunk) - There is rising customer interest in the Voca CIC (AI-first Teams CCaaS platform) and other conversational AI products like Meeting Insights and SmartTAP[8](index=8&type=chunk) - Despite the tragic events in Israel, global business has continued without material disruptions, and the company maintains a positive outlook for growth in 2024[9](index=9&type=chunk) [Capital Allocation](index=3&type=section&id=Capital%20Allocation) In Q3 2023, AudioCodes executed its capital return policy by paying a cash dividend of $0.18 per share, totaling approximately $5.7 million, and repurchasing 880,457 shares for $9.0 million. As of September 30, 2023, the company had $10.0 million remaining under its court-approved plan for share repurchases and/or dividend declarations, valid through December 27, 2023 - A cash dividend of **18 cents per share**, totaling approximately **$5.7 million**, was paid on August 31, 2023[10](index=10&type=chunk) - The company acquired **880,457** of its ordinary shares for a total of **$9.0 million** during the quarter[10](index=10&type=chunk) - As of September 30, 2023, **$10.0 million** was available for future share repurchases and/or dividends under the current approval, which is valid until December 27, 2023[11](index=11&type=chunk) Financial Statements [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2023, AudioCodes' total assets stood at $329.5 million, with total liabilities of $150.3 million and shareholders' equity of $179.2 million. Cash, cash equivalents, and various marketable securities totaled $102.5 million, a decrease from $124.3 million at the end of 2022, primarily due to capital return activities Balance Sheet Summary (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Total current assets | $134,822 | $149,930 | | Total assets | $329,486 | $323,831 | | Total current liabilities | $86,923 | $94,457 | | Total liabilities | $150,265 | $134,071 | | Total shareholders' equity | $179,221 | $189,760 | - The combined balance of cash, cash equivalents, bank deposits, and marketable securities was **$102.5 million** as of September 30, 2023, down from **$124.3 million** as of December 31, 2022[6](index=6&type=chunk) [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the third quarter of 2023, AudioCodes generated $61.6 million in revenue, a decrease from $69.7 million in the same period last year, primarily due to lower product revenue. Service revenue, however, increased to $30.6 million from $26.8 million. GAAP net income was $4.3 million, or $0.14 per diluted share, compared to $5.4 million, or $0.17 per diluted share, in Q3 2022 Q3 2023 vs. Q3 2022 Statement of Operations (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | | :--- | :--- | :--- | | Product Revenues | $31,039 | $42,879 | | Service Revenues | $30,552 | $26,841 | | **Total Revenues** | **$61,591** | **$69,720** | | Gross Profit | $40,937 | $43,750 | | Operating Income | $5,779 | $7,009 | | **Net Income** | **$4,252** | **$5,373** | | Diluted EPS | $0.14 | $0.17 | [Reconciliation of GAAP to Non-GAAP Net Income](index=8&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Net%20Income) AudioCodes reconciled its Q3 2023 GAAP net income of $4.3 million to a Non-GAAP net income of $8.3 million. The primary adjustments included excluding $2.6 million in share-based compensation expenses, $1.0 million in non-cash deferred tax expenses, and other items such as amortization and lease expenses. This reconciliation is provided to help investors better understand the company's ongoing operational performance Q3 2023 GAAP to Non-GAAP Reconciliation (in thousands) | Description | Amount | | :--- | :--- | | **GAAP net income** | **$4,252** | | Share-based compensation | $2,607 | | Amortization expenses | $133 | | Deferred payments expense | $250 | | Lease expenses | $724 | | Exchange rate differences | ($767) | | Deferred tax | $1,023 | | Other Income | $0 | | **Non-GAAP net income** | **$8,302** | - Non-GAAP diluted net earnings per share for Q3 2023 was **$0.25**, compared to GAAP diluted net earnings per share of **$0.14**[20](index=20&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In the third quarter of 2023, the company generated $0.2 million in cash from operating activities. Investing activities provided $5.9 million, while financing activities used $14.6 million, largely for share repurchases ($9.0 million) and dividend payments ($5.7 million). This resulted in a net decrease in cash and cash equivalents of $8.5 million for the quarter Cash Flow Summary for Q3 2023 (in thousands) | Activity | Cash Flow | | :--- | :--- | | Net cash provided by operating activities | $178 | | Net cash provided by investing activities | $5,864 | | Net cash used in financing activities | ($14,588) | | **Net decrease in cash** | **($8,546)** | - Major uses of cash in financing activities for the quarter were the purchase of treasury shares (**$9.0 million**) and payment of cash dividends (**$5.7 million**)[26](index=26&type=chunk) Other Information [Conference Call Information](index=4&type=section&id=Conference%20Call%20Information) AudioCodes hosted a conference call and live webcast on November 2, 2023, at 8:30 A.M. Eastern Time to discuss its third-quarter 2023 financial results and outlook. Supplementary slides were made available on the company's investor website - The company conducted a conference call and webcast to discuss Q3 2023 results and outlook on the day of the earnings release[11](index=11&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements concerning the company's business outlook and future performance. These statements are subject to various risks and uncertainties, including global economic conditions, market acceptance of products, competition, and potential operational impacts from the war and hostilities in Israel - The report includes forward-looking statements as defined under U.S. Federal securities laws, which are subject to risks and uncertainties that could cause actual results to differ materially[14](index=14&type=chunk) - Identified risks include global economic conditions, shifts in supply and demand, competitive pressures, and the potential effects of the conflict in Israel on operations[14](index=14&type=chunk) ```