AudioCodes Ltd (AUDC) Q2 2024 Earnings Call Highlights: Strong Service Revenue Growth Amidst ...

GuruFocus News
5 min read

In This Article:

  • Revenue: $60.3 million, up 0.5% from $60 million in Q2 2023.

  • Services Revenue: $32 million, up 12.3% year-over-year, accounting for 53% of total revenues.

  • Deferred Revenues: $80.3 million as of June 30, 2024, compared to $77.7 million as of June 30, 2023.

  • Gross Margin (GAAP): 65.5%, compared to 64.1% in Q2 2023.

  • Operating Income (GAAP): $4.9 million or 8.2% of revenues, compared to $2.3 million or 3.8% of revenues in Q2 2023.

  • EBITDA (GAAP): $6.2 million, compared to $2.9 million in Q2 2023.

  • Net Income (GAAP): $3.8 million or $0.12 per diluted share, compared to $1.1 million or $0.03 per diluted share in Q2 2023.

  • Gross Margin (Non-GAAP): 65.8%, compared to 64.5% in Q2 2023.

  • Operating Income (Non-GAAP): $7.2 million or 11.9% of revenues, compared to $5.7 million or 9.5% of revenues in Q2 2023.

  • EBITDA (Non-GAAP): $8.3 million, compared to $6.2 million in Q2 2023.

  • Net Income (Non-GAAP): $5.5 million or $0.18 per diluted share, compared to $5.1 million or $0.16 per diluted share in Q2 2023.

  • Cash and Equivalents: $93.7 million as of June 30, 2024.

  • Net Cash Used by Operating Activities: $2.9 million for Q2 2024.

  • Capital Expenditures: $8.8 million in Q2 2024.

  • Days Sales Outstanding: 108 days as of June 30, 2024.

  • Dividend Declared: $0.18 per share, totaling approximately $5.5 million.

  • Revenue Guidance for 2024: $240 million to $250 million.

  • Non-GAAP EBITDA Guidance for 2024: $33 million to $39 million.

Release Date: July 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • AudioCodes Ltd (NASDAQ:AUDC) reported a 0.5% increase in revenues for Q2 2024, reaching $60.3 million compared to the same quarter last year.

  • Services revenues grew by 12.3% year-over-year, accounting for 53% of total revenues, indicating a strong shift towards service-based income.

  • The company achieved a significant improvement in GAAP operating income, which rose to $4.9 million from $2.3 million in Q2 2023.

  • AudioCodes Ltd (NASDAQ:AUDC) saw a 35% year-over-year growth in Microsoft Teams live minute services annual recurring revenues.

  • Conversational AI business revenue increased by 10.5% year-over-year, with bookings growing over 50%, highlighting strong potential in this segment.

Negative Points

  • The company experienced a net cash outflow from operating activities of $2.9 million in Q2 2024.

  • Days sales outstanding increased to 108 days as of June 30, 2024, indicating potential challenges in accounts receivable management.

  • The legacy gateway business continues to decline, although the rate of decline is expected to moderate.

  • AudioCodes Ltd (NASDAQ:AUDC) anticipates elevated capital expenditures in Q3 2024 due to leasehold improvements at their new corporate headquarters.

  • The Customer Experience business saw a 10% year-over-year revenue decline in Q2 2024, impacted by the push-out of a large deal.

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