AudioCodes Reports Second Quarter 2024 Results and Declares Semi-Annual Dividend of 18 cents per share

Core Insights - AudioCodes reported a 0.5% year-over-year increase in quarterly revenues to $60.3 million for Q2 2024, with service revenues rising by 12.3% to $32 million [1][2] - The company achieved a GAAP net income of $3.8 million, or $0.12 per diluted share, compared to $1.1 million, or $0.03 per diluted share, in Q2 2023 [2][19] - Non-GAAP net income for Q2 2024 was $5.5 million, or $0.18 per diluted share, up from $5.1 million, or $0.16 per diluted share, in the same quarter last year [2][19] Financial Performance - GAAP gross margin for the quarter was 65.5%, while non-GAAP gross margin was slightly higher at 65.8% [1][2] - GAAP operating margin stood at 8.2%, with non-GAAP operating margin at 11.9% [1][2] - EBITDA for Q2 2024 was reported at $6.2 million (GAAP) and $8.3 million (non-GAAP), compared to $2.9 million and $6.2 million respectively in Q2 2023 [2][19] Cash Flow and Shareholder Returns - The company used $2.9 million in net cash for operating activities during the quarter [4] - AudioCodes repurchased 116,453 ordinary shares for a total cost of $1.2 million during Q2 2024 [1][8] - A cash dividend of $0.18 per share was declared, amounting to approximately $5.5 million, payable on August 29, 2024 [9][10] Business Segments and Growth - The Microsoft Teams business grew by 3.3% year-over-year, with Live managed services increasing by about 35% year-over-year, reaching an ARR of $56 million [5][6] - The Conversational AI business saw over 50% growth year-over-year, driven by demand for innovation in unified communications and customer experience [6][7] - The company is on track to meet its full-year ARR target range of $64-$70 million, representing an average growth rate of approximately 40% compared to 2023 [5][6] Strategic Initiatives - AudioCodes is focusing on cost rationalization initiatives to support long-term top-line growth and margin expansion [7] - The company has made notable progress in new Conversational AI activities, including solutions for Microsoft Teams and SaaS recording [6][7]