#Israel #Dividend #earnings report #AudioCodes #Or Yehuda

AudioCodes Reports Fourth Quarter and Annual Results for 2024

AudioCodes, a prominent provider of unified communication solutions, released its financial performance for the fourth quarter and the entire year of 2024, revealing a blend of challenges and achievements. The company recorded quarterly revenues of $61.6 million, reflecting a 3.2% decrease year-over-year. Over the full year, revenues slid slightly by 0.9% to $242.2 million compared to $244.4 million in 2023.

A closer examination of the quarterly figures showcases a noteworthy upswing in service revenues, which increased by 10.9% year-over-year, reaching $34.2 million for the fourth quarter. This growth also translated to robust service revenues for the entire year, which peaked at $130.2 million, marking an 8.2% increase compared to the previous year.

In evaluating the financial metrics, AudioCodes reported a GAAP gross margin of 66.2% for the fourth quarter, while the operating margin hovered around 6.7%. The EBITDA for the quarter was $5.2 million, and the net income reached $6.8 million, or $0.22 per diluted share. Annually, the total GAAP net income was $15.3 million or $0.50 per diluted share.

For a broader perspective, the Non-GAAP measures also illustrated significant performance metrics - with a quarterly net income of $11.6 million ($0.37 per diluted share) and an annual net income of $27.3 million ($0.87 per diluted share), up from $25.0 million in 2023.

Cash generated from operations was strong, with $15.3 million reported for the fourth quarter and a total of $35.3 million for the full year. AudioCodes also focused on enhancing shareholder value through a share repurchase strategy, acquiring 634,533 ordinary shares for about $6.0 million in the last quarter.

Additionally, the company declared a cash dividend of 18 cents per share, translating to approximately $5.3 million. This dividend will be paid out to shareholders on March 6, 2025, marking yet another move to reward investors amid a challenging revenue environment.

Shabtai Adlersberg, CEO of AudioCodes, expressed satisfaction with the 2024 performance, noting significant growth in key business lines that underscore the company's transition toward cloud software and services. The Enterprise UCaaS (Unified Communications as a Service) and CX (Customer Experience) sectors accounted for 92% of overall revenues, with the UCaaS business, particularly partnerships with Microsoft, seeing a 13% increase in the fourth quarter.

The shift in business model from perpetual sales to recurrent revenue is bearing fruit, with a pronounced rise in demand for value-added services and AI-driven applications. Notably, the Voice.ai segment alone witnessed a 30% growth year-over-year, contributing to a substantial $65 million in Annual Recurring Revenue (ARR), representing a 35% year-over-year increase.

Looking ahead, AudioCodes anticipates continued momentum in its recurring revenue streams, particularly as enterprises move toward integrated communication solutions that enhance operational efficiencies. The company aims to capitalize on the growing market for AI voice applications, projecting a robust growth rate of 40% to 50% for this segment in 2025.

In conclusion, although 2024 presented challenges, AudioCodes remains poised for growth, underpinned by its strategic investments in cloud technology and AI integration, ensuring its position as a leader in the intelligent communications space. With a solid outlook for 2025 and beyond, stakeholders are eager to see how the continued evolution towards cloud services will unfold.

For more information, AudioCodes invites readers to explore its offerings on the company’s website and follow its social media channels for updates.