RADCOM Ltd. (NASDAQ:RDCM) Q1 2022 Results Earnings Conference Call May 12, 2022 8:00 AM ET Company Participants Eyal Harari - Chief Executive Officer Hadar Rahav - Chief Financial Officer Conference Call Participants Arjun Bhatia - William Blair Operator Ladies and gentlemen, thank you for standing by. Welcome to the RADCOM Limited Results Conference Call for the First Quarter of 2022. All participants are at present in a listen-only mode. Following managementÂ's formal presentation, instructions will be gi ...

Customer Concentration and Market Presence - The company’s three largest customers accounted for approximately 88% of its revenue in fiscal year 2021[36]. - Approximately 94% of the company's sales in 2021 were generated outside of Israel, highlighting its significant international presence[89]. - The company has expanded its customer base to include major operators like AT&T, Beeline, Globe, Rakuten, and Telefonica, receiving multiple industry awards for its innovative solutions[131]. - In 2021, North America accounted for $21.8 million in revenue, while Asia contributed $14.7 million, indicating a strong market presence in these regions[178]. Strategic Focus and Growth Opportunities - The company plans to focus its expansion efforts on tier 1 and other leading communication service providers in North America, Europe, and Asia-Pacific markets[21]. - The company expects the cloud-native virtualized network environments and transition to 5G networks market to gain momentum[21]. - The company’s future success depends on the continued growth of the telecommunications industry, particularly in sectors like 5G and IoT[43]. - The company aims to be the global market leader in 5G network intelligence solutions, leveraging its expertise in cloud-native fully virtualized network deployments to enhance sales[154]. - Future growth is anticipated to be driven by the deployment of 5G by leading CSPs[215]. Financial Performance and Risks - The company incurred net losses of approximately $5.3 million, $4 million, and $6.8 million in 2021, 2020, and 2019 respectively, indicating ongoing challenges in achieving profitability[87]. - Quarterly results have historically shown significant fluctuations, which may continue to affect share price and financial stability[51]. - Revenue recognition may be delayed due to customer acceptance processes, potentially impacting quarterly revenue predictions[55]. - The company’s revenues are often derived from a small number of high-value orders, making them vulnerable to significant impacts from order losses or delays[54]. - Economic and political developments in emerging markets could adversely affect revenue generation from those regions[59]. - Global economic conditions could adversely affect the telecommunications sector, leading to reduced consumer spending and impacting sales[111]. Competition and Market Challenges - The company may face intense competition in the market for service assurance and customer experience management solutions, which could affect revenues and profitability[37]. - The strategy to focus sales efforts on Tier 1 and Greenfield Operators in North America and Europe may not guarantee success, as the selection of solutions by these customers is uncertain[50]. - The company faces substantial negotiating leverage from large customers, which may lead to unfavorable terms that could decrease revenues and increase order conversion times[49]. - The complexity of solutions for larger CSPs increases operational risks, including potential project failures and contractual penalties[73]. Technology and Innovation - The company provides 5G ready cloud-native network intelligence and service assurance solutions for Communication Service Providers (CSPs) to support their transition to virtualization and 5G networks[124]. - RADCOM ACE, launched in August 2020, is an automated, containerized, end-to-end assurance solution for 5G networks, designed to ensure optimal quality and improve operational efficiency through automation[144]. - The company’s advanced cloud-native architecture allows for dynamic service deployment across private and public clouds, facilitating a hybrid approach for operators[126]. - The company’s solutions leverage AI and Machine Learning capabilities to provide real-time insights and improve network performance, enhancing customer experience[137]. - The company has increased investments in automation and machine learning techniques to better analyze network traffic expected from 5G rollouts[186]. Research and Development - The company has received an aggregate of $48.4 million in royalty-bearing grants for research and development activities, which obligates it to pay royalties on revenues from products developed under this program[81]. - The company plans to continue significant investments in R&D in 2022 to develop new features and solutions for the transition to 5G networks[187]. - The company anticipates continued investment in research and development to enhance its solutions and expand its market presence in the evolving telecommunications landscape[147]. Operational and Compliance Risks - The company may face challenges in complying with Section 404 of the Sarbanes-Oxley Act, which could negatively impact investor confidence and the market price of shares[118]. - Compliance with privacy and data security laws, such as GDPR and CCPA, may increase operational costs and affect competitiveness[113][114]. - The company is subject to potential claims of infringement of third-party intellectual property, which could require significant financial and managerial resources to address[84]. - The transition from LIBOR to SOFR may increase the company's financial liabilities related to grants received from the IIA, although the exact impact is currently uncertain[82]. Employee and Operational Structure - The company has a total headcount of 278 employees and contractors as of December 31, 2021[198]. - Employee benefits in the United States average approximately 19.1% of base salary, while in Brazil, they range from 3% to 13%[204]. - In India, employee benefits amount to 28% of salary, including health coverage and education funds[205]. - The company operates through subsidiaries in the US, Brazil, and India, focusing on sales, marketing, and customer support[206]. Real Estate and Facilities - The company leases approximately 22,830 square feet of office space in Tel Aviv, with annual lease payments of about $707,000[208]. - Additional leased spaces include 5,946 square feet in New Jersey with payments of approximately $123,000, and smaller offices in Brazil and India[209].

RADCOM Ltd. (NASDAQ:RDCM) Q4 2021 Earnings Conference Call February 24, 2022 7:30 AM ET Company Participants Eyal Harari - Chief Executive Officer Hadar Rahav - Chief Financial Officer Conference Call Participants Alexander Henderson - Needham & Company Operator Ladies and gentlemen, thank you for standing by. Welcome to the RADCOM Limited Results Conference Call for the Fourth Quarter and Full Year 2021. All participants are present in a listen-only mode. Following management’s formal presentation, instruc ...

Financial Performance - Q4 2021 revenues reached $112 million[9] - Cash and cash equivalents and short-term bank deposits totaled $706 million with no debt[9] - The company provided 2022 revenue guidance in the range of $42 million to $45 million[9] - GAAP gross profit for the fourth quarter of 2021 was $7723 thousand, representing a gross profit margin of 69%[12] - For the full year 2021, GAAP gross profit was $28859 thousand, with a gross profit margin of 72%[12] - Non-GAAP gross profit for the fourth quarter of 2021 was $7806 thousand, resulting in a gross profit margin of 70%[15] - For the full year 2021, the Non-GAAP gross profit was $29066 thousand, with a gross profit margin of 72%[15] Balance Sheet - Total current assets as of December 31, 2021, were $83609 thousand[24] - Total current liabilities as of December 31, 2021, were $16361 thousand[24] - Shareholders' equity totaled $70154 thousand[24] Operating Expenses (GAAP) - Total operating expenses for the three months ended December 31, 2021, were $8995 thousand[12] - Total operating expenses for the twelve months ended December 31, 2021, were $34352 thousand[12]

Financial Data and Key Metrics Changes - Total revenue for Q3 2021 was $10.2 million, an increase from $9.8 million in Q3 2020, marking the ninth consecutive quarter of year-over-year revenue growth [9][35] - Gross margin for Q3 2021 on a non-GAAP basis was 70%, with gross R&D expenses slightly decreasing to $4.5 million compared to Q3 2020 [35] - Net loss for Q3 2021 on a non-GAAP basis was $333,000, or $0.02 per diluted share, compared to a net income of $246,000, or $0.02 per diluted share in Q3 2020 [39] Business Line Data and Key Metrics Changes - The company continues to invest in R&D, launching a new AI solution as part of RADCOM ACE, which analyzes data sessions in real-time to identify faults in 5G networks [10][12] - The integration with Amazon Web Services (AWS) allows telecom operators to utilize cloud services for managing network services more efficiently [15][16] Market Data and Key Metrics Changes - The automated assurance market is expected to grow, driven by the need for AI/ML-driven automation for 5G and cloud solutions [13] - Greenfield operators, such as Rakuten and DISH, are entering the telecom space, leveraging advanced technology without legacy constraints [17][19] Company Strategy and Development Direction - The company is focused on enhancing its cloud-native technology and expanding partnerships with public cloud providers to ensure service quality for 5G networks [14][15] - RADCOM aims to capture market share by targeting operators that are advancing in 5G technology, particularly those that are cloud-native [58][60] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued growth in 2021 and 2022, citing a strong sales pipeline and increased visibility [9][32] - The transition to 5G is still in its early stages, with significant movement expected in the coming years as technology matures [52][53] Other Important Information - The company received a grant of $205,000 from the Israel Innovation Authority during the quarter, down from $478,000 in the same period last year [36] - An employee retention program was launched, which will increase stock-based compensation expenses by $2.7 million annually for the next two years [37] Q&A Session Summary Question: Clarification on RSU expenses - The CFO confirmed that the RSU grant will increase expenses by $2.7 million per year for the next two years [44] Question: Impact of shekel exchange rate on cost structure - The CFO explained that quarterly shekel expenses are about $5 million to $6 million, with a projected impact of $150,000 to $180,000 per quarter due to exchange rate fluctuations [46][47] Question: Transition to full 5G - Management indicated that the commitment to 5G is high among top operators, but practical implementation is still in the single-digit percentage range [51][52] Question: Sales pipeline and customer characteristics - The company is primarily targeting Tier 1 operators focused on 5G, with a mix of traditional and greenfield carriers in the pipeline [58][60] Question: AWS integration and new opportunities - The company is seeing a mix of new opportunities and existing customers requiring AWS integration, which is crucial for cloud-centric models [62][63]

RADCOM Q3-21 CONFERENCE CALL November 11, 2021 AGENDA Introduction and safe harbor CEO – Eyal Harari, Chief Executive Officer CTO – Amir Hai, Chief Financial Officer Q&A SAFE HARBOR PROVISION Certain statements made herein that use words such as "estimate" , "project" , "intend", "expect", "believe", "may", "might", "predict", "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 ...

RADCOM Ltd. (NASDAQ:RDCM) Q2 2021 Earnings Conference Call August 12, 2021 8:00 AM ET Company Participants Eyal Harari - Chief Executive Officer Amir Hai - Chief Financial Officer Conference Call Participants Bhavan Suri - William Blair Michelle Waller - Needham & Company Sasha Karim - Inflection Point Investments Operator Ladies and gentlemen, thank you for standing by. Welcome to the RADCOM Limited Results Conference Call for the Second Quarter of 2021. All participants are present in a listen-only mode. ...

RADCOM Q2-21 CONFERENCE CALL AUGUST 12, 2021 SAFE HARBOR PROVISION Certain statements made herein that use words such as "estimate" , "project" , "intend", "expect", "believe", "may", "might", "predict", "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, the Company statements about its visibility into the second half of 2021, its sales ...

RADCOM RADCOM Ltd. (RDCM) CORPORATE OVERVIEW SAFE HARBOR Certain statements herein contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act and Section 21E of the Exchange Act. These forward-looking statements include, but are not limited to, those statements regarding expected revenues, industry and market conditions and trends, the market potential for NFV, the future of new technologies such as 5G and their applicat ...

RADCOM Ltd. (NASDAQ:RDCM) Q1 2021 Results Earnings Conference Call May 11, 2021 8:00 AM ET Company Participants Eyal Harari - Chief Executive Officer Amir Hai - Chief Financial Officer Conference Call Participants Bhavan Suri - William Blair Alex Henderson - Needham & Company Sasha Karim - Inflection Point Investments Operator Ladies and gentlemen, thank you for standing by. Welcome to the RADCOM Limited Results Conference Call for the First Quarter of 2021. All participants are at present in a listen-only ...