RADCCM RADCOM Q2-2024 CONFERENCE CALL August 7th, 2024 AGENDA ▪ Introduction and safe harbor ▪ Hilik Itman, Interim Chief Executive Officer ▪ Hadar Rahav, Chief Financial Officer ▪ Q&A SAFE HARBOR PROVISION • Forward-looking statements in the conference call involve several risks and uncertainties, including, but not limited to, the Company's statements about 5G and launches, demand for the Company's products and services, sales opportunities, sales cycles, and pipeline, momentum, maintaining and increasing ...

Radcom (RDCM) came out with quarterly earnings of $0.20 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 33.33%. A quarter ago, it was expected that this monitoring service for the communications industry would post earnings of $0.18 per share when it actually produced earnings of $0.18, delivering no surprise. Over the last f ...

Financial Performance - Total revenues for Q2 2024 reached $14.8 million, a 20% increase from $12.4 million in Q2 2023, marking a new company record[7] - GAAP net income for Q2 2024 was $1.7 million, or $0.11 diluted EPS, representing a 120% increase compared to $0.8 million, or $0.05 diluted EPS in Q2 2023[8] - Non-GAAP net income for Q2 2024 was $3.1 million, or $0.20 diluted EPS, compared to $2.1 million, or $0.13 diluted EPS in Q2 2023[8] - Total revenues for the first half of 2024 were $28.9 million, a 19% increase from $24.4 million in the first half of 2023[10] - Operating income for Q2 2024 was $880,000, compared to an operating loss of $446,000 in Q2 2023[23] - The company raised its 2024 revenue guidance to $58 to $61 million, up from the previous guidance of $57 to $60 million[12] Profitability - The company reported a gross profit of $11 million for Q2 2024, up from $8.9 million in Q2 2023[23] - GAAP gross profit for June 2024 was $11,007 thousand, up 24% from $8,892 thousand in June 2023[25] - Non-GAAP gross profit increased to $11,162 thousand in June 2024, compared to $9,009 thousand in June 2023, representing a 24% growth[25] - GAAP net income for June 2024 was $1,707 thousand, a 118% increase from $781 thousand in June 2023[28] - Non-GAAP net income rose to $3,137 thousand in June 2024, up 49% from $2,098 thousand in June 2023[28] - Non-GAAP operating income for June 2024 was $2,276 thousand, significantly higher than $842 thousand in June 2023, indicating a 170% increase[25] Cash and Assets - Cash and cash equivalents reached a record high of $86.1 million as of June 30, 2024, with no debt[9] - Total current assets increased to $106,231 thousand as of June 30, 2024, compared to $97,415 thousand at the end of December 2023, reflecting a 9% growth[31] - Cash and cash equivalents grew to $15,248 thousand in June 2024, up from $10,892 thousand in December 2023, marking a 40% increase[31] Liabilities - Total liabilities increased to $28,818 thousand as of June 30, 2024, compared to $25,038 thousand at the end of December 2023, a rise of 11%[31] Market Activity - The company secured over $50 million in new 5G contracts since the start of 2024, including several seven-digit contracts across various markets[7] - The sales pipeline is expanding, indicating increasing demand for the company's solutions, particularly in North America[12] Share Information - The weighted average number of shares used to compute diluted net income per share was 15,978,799 for June 2024, compared to 15,658,748 for June 2023[28] Operating Expenses - GAAP total operating expenses for June 2024 were $10,127 thousand, up from $9,338 thousand in June 2023, reflecting an increase of 8%[25]

Radcom (RDCM) shares ended the last trading session 6.4% higher at $10.24. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.5% gain over the past four weeks. The increase in share price can attributed to the strength in demand for the company's AI-powered analytics solutions including the RADCOM ACE product line. Renewal of a multi-year deal with Rakuten Mobile along with an extension of the contract for RADCOM AC ...

TEL AVIV, Israel, July 17, 2024 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) today announced that it will report its financial results for the second quarter, which ended June 30, 2024, on Wednesday, August 7, 2024, before the opening of trade on the Nasdaq Stock Market. RADCOM's management will host an interactive conference call on the same day at 8:00 AM Eastern Time (3:00 PM Israel Daylight Time) to discuss the financial results and answer participants' questions. Live webcast: A live webcast of the prese ...

TEL AVIV, Israel, June 6, 2024 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) announced that it has secured over $45 million in new contracts since the beginning of 2024. This significant achievement validates the company's strategy for growing the business and increasing revenue through RADCOM's innovative solutions, especially with the transition to 5G and cloud-based networks. Mr. Hilik Itman, RADCOM's interim Chief Executive Officer, commented, "Securing over $45 million in new contracts strengthens our pos ...

Radcom (RDCM) reported first-quarter 2024 non-GAAP earnings per share (EPS) of 18 cents, meeting the Zacks Consensus Estimate. The bottom line increased 50% year over year. Revenues in the quarter totaled $14.1 million, beating the Zacks Consensus Estimate by 4.62%. Total revenues soared 17.5% year over year. This upside underscores RADCOM's continued success in expanding its market presence and driving revenue growth. Non-GAAP net income for the quarter increased to $2.8 million from $1.8 million in the pr ...

Financial Data and Key Metrics Changes - The company reported record first-quarter revenue of $14.1 million, representing a 17.5% year-over-year increase from $12 million in Q1 2023, marking the nineteenth consecutive quarter of revenue growth [13][53]. - Non-GAAP net income for Q1 2024 was $2.8 million, or $0.18 per diluted share, compared to $1.8 million, or $0.12 per diluted share, in Q1 2023 [65]. - The gross margin on a non-GAAP basis was 74% for Q1 2024, with expectations for similar levels in the second quarter [54]. Business Line Data and Key Metrics Changes - The company continues to enhance its RADCOM ACE product line, focusing on cloud integration and AI capabilities, which are critical for telecom operators transitioning to 5G [15][18]. - Sales and marketing expenses reached $3.8 million on a non-GAAP basis, an increase of $747,000 compared to Q1 2023, reflecting strategic investments to capture more opportunities in the 5G market [56]. Market Data and Key Metrics Changes - The company is experiencing a healthy pipeline with a mix of new and existing customers, indicating significant growth potential in the 5G cloud ecosystem [15][20]. - Operators are increasingly investing in their networks and seeking innovative solutions to reduce costs while generating additional revenue from 5G investments [17][18]. Company Strategy and Development Direction - The company aims to become a leading cloud assurance vendor, offering flexible SaaS options for telecom operators [22]. - The focus is on leveraging AI and automation to enhance network management and operational efficiencies, positioning the company favorably in the evolving telecom landscape [18][25]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering the fifth consecutive year of revenue growth, raising the lower end of the 2024 revenue guidance to $57 million to $60 million [20]. - The company acknowledges challenges in the telecom industry but believes its solutions are essential for operators navigating the transition to 5G and cloud-based networks [37][39]. Other Important Information - The company ended Q1 2024 with cash levels at an all-time high of $85.3 million, supporting its strategic initiatives and potential M&A opportunities [24][61]. - The company continues to receive grants from the Israel Innovation Authority, which are expected to remain stable in the upcoming quarters [60]. Q&A Session Summary Question: How does the current telecom environment affect the company? - Management acknowledged challenges in the telecom industry but emphasized that their solutions are critical for operators transitioning to 5G, positioning the company favorably [37][39]. Question: What are the thoughts on cash position and potential buybacks? - Management indicated that while discussions around buybacks exist, the primary focus remains on stability and market share growth, with sufficient cash reserved for potential M&A [31][32]. Question: How is the sales and marketing strategy evolving? - The company is strategically investing in sales and marketing to capture more opportunities in the 5G market, with a focus on North America and advanced Asian markets [48][49].

Gross profit 10,512$ 8,764$ Research and development, gross 4,056$ 4,224$ Research and development, net 3,847$ 3,962$ General and administrative 1,174$ 964$ Operating income 1,739$ 833$ Financial income, net 1,142$ 1,026$ Net income 2,848$ 1,828$ OPERATING EXPENSES (GAAP) Less - royalty-bearing participation 209$ 262$ Less - royalty-bearing participation 209$ 262$ Research and development, net 3,847$ 3,962$ Sales and marketing 3,752$ 3,005$ CONSOLIDATED BALANCE SHEETS Total Liabilities 26,566$ 25,038$ Total ...

Financial Performance - Total revenues for Q1 2024 were $14.1 million, representing a 17.5% year-over-year growth from $12.0 million in Q1 2023[6] - GAAP net income for Q1 2024 was $0.8 million, or $0.05 per diluted share, compared to $0.6 million, or $0.04 per diluted share in Q1 2023[6] - Non-GAAP net income for Q1 2024 was $2.8 million, or $0.18 per diluted share, up from $1.8 million, or $0.12 per diluted share in Q1 2023[6] - Total operating expenses for Q1 2024 were $10.7 million, compared to $9.0 million in Q1 2023[14] Cash and Assets - The company achieved its highest-ever cash level of $85.3 million as of March 31, 2024, with no debt[6] - The total assets of the company as of March 31, 2024, were $111.9 million, an increase from $107.5 million as of December 31, 2023[18] Revenue Guidance and Growth - The lower end of the 2024 revenue guidance has been raised to $57 million from $56 million, with an upper range of $60 million[5] - The company is positioned to deliver a fifth consecutive year of revenue growth and increase profitability based on current visibility and market opportunities[4] Contracts and Partnerships - A multi-year contract was renewed with Rakuten Mobile, including advanced AI-powered analytics for network operations[4] - A U.S. telecom operator extended its contract to use RADCOM ACE, which will now be hosted on Amazon Web Services as Software-as-a-Service[4]