Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $61.5 million, an increase of 2.2% from $60.2 million in Q3 2024 [7] - Services revenues decreased by 4.8% year-over-year to $30.9 million, accounting for 50.3% of total revenues [7] - GAAP gross margin improved to 65.5% from 65.2% in Q3 2024, while non-GAAP gross margin was 65.8%, up from 65.6% [9][23] - Operating income was $4.1 million (6.6% of revenues), down from $4.9 million (8.1% of revenues) in Q3 2024 [8] - Non-GAAP operating income decreased to $5.8 million (9.5% of revenues) from $7 million (11.7% of revenues) in Q3 2024 [9] - Net income remained stable at $2.7 million, with diluted earnings per share increasing to $0.10 from $0.09 [9] - Cash and equivalents totaled $79.7 million at the end of September 2025 [10] Business Line Data and Key Metrics Changes - The conversational AI business grew by 50% in Q3 2025, contributing to a strong annual recurring revenue (ARR) of $75 million, up 25% year-over-year [12][13] - The Live family of unified communication and collaboration services accounted for over 90% of total revenue [12] - The backlog at the end of Q3 was $76 million, a 13.4% increase from $67 million a year ago [14] Market Data and Key Metrics Changes - Revenue by geographical region: North America 48%, EMEA 33%, Asia-Pacific 15%, Central and Latin America 4% [8] - The voice bot market is projected to grow from $4.3 billion in 2024 to over $25 billion by 2034, with a compound annual growth rate of 20% [19] Company Strategy and Development Direction - The company is transforming into an AI-driven hybrid cloud software and services provider, focusing on UCaaS and CCaaS connectivity [12] - A strategic agreement was signed with a global Tier 1 system integrator to enhance service delivery and expand market reach [15] - The company aims to leverage its strong connectivity install base to drive cross-sales of value-added services [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strong ARR momentum and growth prospects, supported by a robust pipeline of opportunities [13] - The company expects revenues for 2025 to be between $244 million and $246 million, with non-GAAP earnings per share projected at $0.60 to $0.64 [11] - Management noted that the UCaaS market has stabilized, with significant growth potential remaining in the non-UCaaS market [25] Other Important Information - The company declared a cash dividend of $0.20 per share, totaling approximately $5.6 million, paid on August 28, 2025 [10] - The impact of new tariffs on U.S. imports added approximately $500,000 in costs for Q3 2025 [8] Q&A Session Summary Question: Insights on the global tier-one system integrator win - The significance of the Live Platform as a comprehensive service delivery platform for UCaaS and CX was highlighted, enabling large system integrators to modernize enterprise communication [40][41] Question: Pricing power in the AI solutions market - The emerging voice AI market currently does not face price pressure, allowing for continued enhancement and feature addition without compromising pricing [43] Question: Trends in Microsoft business growth - The UCaaS market has flattened recently, but there remains significant room for growth as a large portion of the market is still served by legacy PBX technology [44] Question: Performance of product revenue in the quarter - Strong product revenue growth was primarily driven by software related to voice AI solutions [45]