RADCOM's Q4 Earnings Surpass Estimates, Revenues Increase Y/Y

Core Insights - RADCOM Ltd. (RDCM) reported a fourth-quarter 2024 non-GAAP EPS of 23 cents, exceeding the Zacks Consensus Estimate by 21.1%, although it represented an 8% year-over-year decline [1] - The company achieved record revenues of $16.3 million in the quarter, surpassing the Zacks Consensus Estimate by 5.6$3.8 million, slightly down from $3.9 million a year ago [5] - Non-GAAP operating income rose by 6.7$2.8 million, while operating expenses increased to $9.4 million from$8 million in the prior-year period [5] - As of December 31, 2024, RDCM had $94.7 million in cash and equivalents, with a cash flow of$12.5 million for the quarter, marking the highest cash balance in the company's history and maintaining a debt-free status [6] Strategic Initiatives - Management emphasized the strength of the company's cloud and AI-based assurance solutions, highlighting ongoing investments in R&D to enhance leadership in 5G assurance and support operators transitioning to next-generation networks [3] - On January 15, 2025, RDCM signed a multi-year agreement with Norlys to provide advanced network monitoring solutions for its 5G and 4G networks in Denmark [4] Future Outlook - RDCM provided revenue guidance for full-year 2025, expecting growth between 12% and 15%, with a midpoint of $69.2 million, indicating a 13.5% increase from 2024 [7] Market Position - RDCM currently holds a Zacks Rank 3 (Hold) and has seen its shares surge by 51.7% over the past year, outperforming the Zacks Computer – Networking industry's growth of 23.5% [8]