Core Insights - RADCOM Ltd. (RDCM) is expected to report second-quarter 2025 results on August 13, with revenue estimates of $17 million, reflecting a 14.9% year-over-year growth, and earnings estimates of 22 cents per share, indicating a 10% increase from the previous year [1][9] Financial Performance - RDCM has consistently beaten the Zacks Consensus Estimate in the last four quarters, with an average surprise of 22.3%. The company's shares have increased by 32.7% over the past year, compared to a 54.4% growth in the Zacks Computer-Networking industry [2] Growth Drivers - The company's growth in the second quarter is attributed to its focus on AI, 5G assurance, and cloud-native solutions, supported by strong margins and visibility into new AI/5G contracts [3][9] - RADCOM's automated, AI-driven assurance platform, RADCOM ACE, provides real-time insights into service performance and customer experience, which is a key strength for the company [3] Strategic Initiatives - Management anticipates rising demand for data and insights as new AI-driven use cases emerge, investing in agentic AI through partnerships with leading customer care and service management platforms [4] - The company is also focusing on accelerated computing and GenAI to enhance real-time user and service insights, which include customer experience metrics and predictive models for satisfaction [5][10] Partnerships and Market Position - RADCOM has established key partnerships, such as with ServiceNow, to enhance AI-driven complaint resolution and predictive customer experience, positioning itself as a leader in integrating AI for seamless workflows [6] - The global telecom market is expanding, driven by 5G standalone networks and high-value use cases like IoT and private 5G, with RADCOM positioned to support operators in delivering intelligent user experiences [7][10] Recent Developments - In May 2025, RADCOM secured a multi-year, eight-figure contract renewal with a major North American telecom operator, reinforcing its role in ensuring network performance and service quality [12]

Company Overview - RADCOM Ltd. is a leading provider of advanced, intelligent assurance solutions with integrated AI Operations (AIOps) capabilities [3] - The flagship platform, RADCOM ACE, utilizes AI-driven analytics and generative AI (GenAI) to enhance customer experiences [3] - RADCOM's solutions are designed to be open, vendor-neutral, and cloud-agnostic, driving next-generation network automation and optimization [4] Financial Results Announcement - RADCOM will release its financial results for the second quarter, ended June 30, 2025, on August 13, 2025, before the opening of trade on the Nasdaq Stock Market [1] - A conference call and live webinar will be hosted by CEO Benny Eppstein and CFO Hadar Rahav on the same day at 8:00 AM Eastern Time [2] Investor Relations - For investor inquiries, Miri Segal from MS-IR LLC can be contacted [3] - CFO Hadar Rahav is also available for company contact [3] Technology and Services - RADCOM's advanced 5G portfolio provides end-to-end network observability, from the radio access network (RAN) to the core [4] - The company leverages AI-powered intelligence to reduce operational costs and enable predictive customer insights [4] - RADCOM's analytics empower telecom operators to ensure exceptional service quality and enhance user experiences [4]

Company Overview - Radcom (RDCM) shares increased by 11.4% to $14.5 in the last trading session, with a higher-than-average trading volume, compared to a 2.1% gain over the past four weeks [1] - The rise in share price is linked to strong demand for its 5G assurance solutions, particularly the RADCOM ACE platform, which is gaining traction in North America and Europe [2] Business Developments - Radcom has secured a multi-year contract with Norlys, the owner of Telia Denmark, which replaces the previous assurance vendor and strengthens its position in the European telecom market [3] - The company is investing in R&D to enhance its AI and Generative AI capabilities, aimed at improving network management and customer satisfaction for telecom operators transitioning to standalone 5G networks [3] Financial Performance - In the last reported quarter, Radcom achieved record revenues of $16.6 million, reflecting a 17.5% year-over-year increase [4] - For full-year 2025, the company anticipates revenue growth between 15% and 18%, with a midpoint of $71 million, indicating a 13.5% increase from 2024 [4] - The upcoming quarterly earnings are projected at $0.22 per share, representing a 10% year-over-year increase, with expected revenues of $17 million, up 14.9% from the previous year [5] Market Position - The consensus EPS estimate for Radcom has remained stable over the last 30 days, indicating that stock price movements may not continue without changes in earnings estimate revisions [6] - Radcom holds a Zacks Rank of 3 (Hold), indicating a neutral outlook in the market [6]

Group 1 - Radcom Ltd. (NASDAQ: RDCM) is a leader in selling network monitoring tools to telecom service providers [1] - The company possesses the best technology in the network monitoring space and is gaining market share from legacy competitors such as NetScout, EXFO, and Viavi [1] Group 2 - The focus is on smaller technology companies with innovative products or new management teams that can drive revenue and operating profit growth [1]

Core Viewpoint - RADCOM Ltd. (RDCM) reported strong first-quarter 2025 results, with non-GAAP EPS of 25 cents, exceeding estimates by 13.6%, and revenues of $16.6 million, a 17.5% year-over-year increase [1][2] Financial Performance - Non-GAAP net income for the quarter was $4.1 million, up from $2.8 million year-over-year [2] - Non-GAAP operating income increased to $3.1 million from $1.7 million in the same period last year [3] - Non-GAAP operating expenses rose to $9.5 million from $8.8 million [3] Cash Flow and Liquidity - As of March 31, 2025, RDCM had $99.1 million in cash and equivalents, marking the highest cash balance in the company's history [4] - The company reported a cash flow of $4.4 million for the quarter, remaining completely debt-free [4] Revenue Guidance - For full-year 2025, RDCM expects revenue growth between 15% and 18%, with a midpoint of $71 million, indicating a 13.5% increase from 2024 [5] Recent Developments - RADCOM renewed and expanded a multi-year, eight-figure contract with a tier-one North American customer, reflecting strong confidence in its solutions [6] - The company partnered with Nvidia and ServiceNow to enhance customer insights and automation [6][7] - RADCOM became the first assurance vendor integrated into ServiceNow's AI Agent Fabric, supporting advanced AI workflows [7] Industry Performance - RDCM shares have surged 43.3% over the past year, outperforming the Zacks Computer – Networking industry's growth of 22.9% [8]

Q1 - 2 5 Earnings May 14, 20 2 5 Benny Eppstein CEO This conference call will contain forward-looking statements. Forward-looking statements in the conference call involve several risks and uncertainties, including, but not limited, to the Company's statements about its momentum, strategic direction and trajectory, future execution and delivery of value to customers, development of and enhancing strategic partnerships and expected benefits from collaborations, the success of new technologies to, among other ...

Core Viewpoint - Radcom (RDCM) reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.22 per share, and showing an increase from $0.18 per share a year ago, indicating a positive earnings surprise of 13.64% [1] - The company also posted revenues of $16.59 million for the quarter, surpassing the Zacks Consensus Estimate by 0.55% and up from $14.12 million year-over-year [2] Financial Performance - Radcom has consistently outperformed consensus EPS estimates over the last four quarters, achieving earnings surprises of 21.05% in the previous quarter [2][1] - The current consensus EPS estimate for the upcoming quarter is $0.23, with projected revenues of $16.9 million, and for the current fiscal year, the estimate is $0.92 on revenues of $68.3 million [7] Market Position - Radcom shares have increased approximately 4% since the beginning of the year, outperforming the S&P 500, which gained only 0.1% [3] - The company's Zacks Rank is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Computer - Networking industry, to which Radcom belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Radcom's stock performance [5]

Financial Data and Key Metrics Changes - The company achieved a record revenue of $16.6 million for the first quarter of 2025, reflecting a 17.5% year-over-year growth [21] - Operating margins improved by over 6.5% year-over-year, with a positive cash flow of $4.4 million [6] - Non-GAAP operating income reached $3.1 million, representing 19% of revenues for the quarter [21] - Non-GAAP net income was $4.1 million or $0.25 per diluted share, compared to $2.8 million or $0.18 per diluted share in the same quarter last year [23] Business Line Data and Key Metrics Changes - The company continues to invest strategically in R&D, with non-GAAP gross R&D expenses of $4.3 million, up 5.8% year-over-year [22] - Sales and marketing expenses increased to $4.2 million, reflecting a focus on promoting offerings to existing and prospective customers [23] Market Data and Key Metrics Changes - The global telecom market is growing, driven by the demand for 5G standalone networks and AI-driven applications [14] - The company is well-positioned to capitalize on the data-centric demands of emerging AI technologies [15] Company Strategy and Development Direction - The strategic objective is to become a key provider of real-time user and service experience insights for AI-powered telecom operators [10] - The company is investing in accelerated computing technologies and Agenetic AI to enhance customer care and service management [10][11] - Partnerships with ServiceNow and NVIDIA are aimed at fast-tracking the development of automated customer experience solutions [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and execution, projecting revenue growth for the sixth consecutive year [7] - The full-year 2025 revenue growth outlook has been raised from 12%-15% to 15%-18%, with a midpoint of $71.1 million [18] Other Important Information - The company ended the first quarter with cash and cash equivalents of $99.1 million and no debt [6] - The company received a grant of $25,000 from the Israel Innovation Authority during the quarter [22] Q&A Session Summary Question: Expansion on Authentic AI functionality and monetization - The company plans to invest in R&D for Generative AI and Agenetic AI use cases, with flexible monetization models being discussed [28] Question: Free cash flow generation and capital use - The company is exploring M&A opportunities and prioritizing actions around its ecosystem [29][30] Question: Growth expectations for customer count and standalone networks - The company projects similar growth rates as seen previously, with increased demand for customer management and real-time user analytics [34] Question: Gross margins and revenue mix - Gross margins typically range from 72% to 76%, influenced by the revenue mix, with less third-party components improving margins this quarter [35][36] Question: ServiceNow relationship and customer base overlap - The partnership with ServiceNow is expected to expand pipeline opportunities, particularly in North America, Europe, and Japan [39] Question: Deployment model with NVIDIA - The integration involves using GPUs that can be installed in standard servers, enhancing performance in user analytics [40][41]

Financial Data and Key Metrics Changes - In Q1 2025, the company achieved record revenue of $16.6 million, reflecting a 17.5% year-over-year growth [20] - Operating margins improved by over 6.5% year-over-year, with a positive cash flow of $4.4 million [6] - Non-GAAP operating income reached $3.1 million, representing 19% of revenues for the quarter [22] - Non-GAAP gross margin for Q1 2025 was 76.3% [20] - Net income on a non-GAAP basis was $4.1 million or $0.25 per diluted share, compared to $2.8 million or $0.18 per diluted share in Q1 2024 [22][23] Business Line Data and Key Metrics Changes - The company is focusing on its automated intelligence assurance solution, RADCOM ACE, which provides real-time service and customer experience insights [7] - Investments in R&D increased by 5.8% year-over-year, totaling $4.3 million, reflecting a commitment to innovation and portfolio expansion [21] Market Data and Key Metrics Changes - The global telecom market is growing, driven by the demand for 5G standalone networks and AI-driven applications [13] - The company is well-positioned to capitalize on the data-centric demands of emerging AI technologies [14] Company Strategy and Development Direction - The strategic objective is to become a key provider of real-time user and service experience insights for AI-powered telecom operators [9] - The company is investing in accelerated computing technologies and Agenetic AI to enhance customer care and service management [9][10] - Partnerships with ServiceNow and NVIDIA are aimed at fast-tracking the development of automated customer experience solutions [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic direction and execution, projecting revenue growth for the sixth consecutive year [6] - The full-year 2025 revenue growth outlook was raised from 12%-15% to 15%-18%, with a midpoint of $71.1 million [17] Other Important Information - The company ended Q1 2025 with cash and cash equivalents of $99.1 million and no debt [6][23] - The company received a grant of $25,000 from the Israel Innovation Authority during the quarter [21] Q&A Session Summary Question: Expansion on Authentic AI functionality and monetization - Management plans to invest in R&D for Generative AI and Agenetic AI use cases, with flexible monetization models being discussed [26][27] Question: Free cash flow generation and capital use - The company is exploring M&A opportunities and prioritizing actions around its ecosystem [28][29] Question: Growth expectations for standalone networks - Management projects similar growth rates as seen previously, with increased demand for customer management and real-time user analytics [32][33] Question: Gross margins and revenue mix - Gross margins typically range from 72% to 76%, influenced by the revenue mix, with less third-party components improving margins this quarter [34][35] Question: ServiceNow relationship and customer base overlap - The partnership with ServiceNow is expected to expand pipeline opportunities, particularly in North America, Europe, and Japan [36] Question: Deployment model with NVIDIA - The integration with NVIDIA allows for GPU installation in standard servers, enhancing performance in user analytics [37][38]

Exhibit 99.1 "The exceptional financial performance in the first quarter of 2025 builds on our record-breaking results from 2024. We are on track to deliver a sixth consecutive year of growth, driven by our outstanding team. This quarter we achieved record company revenue once again, and thanks to our operational excellence and disciplined expense management, we increased operating margins by more than 6.5% year-over-year," said Benny Eppstein, Chief Executive Officer of RADCOM. RADCOM DELIVERS RECORD QUART ...