- AudioCodes (AUDC, Financial) sees 0.5% year-on-year revenue growth, reaching $60.4 million in Q1 2025.
- Annual Recurring Revenue (ARR) surges by 25% to $67 million, driven by strong service revenue growth.
- The company maintains a strong cash position with $95.7 million in hand at the end of the quarter.
AudioCodes (AUDC), a leading provider of voice, contact center, and AI applications, reported a marginal year-on-year revenue growth of 0.5% amounting to $60.4 million for Q1 2025. This growth highlights a successful transition to service-based revenues, which increased by 3.4% to $32.6 million.
The company's profitability improved, with GAAP net income reaching $4.0 million or $0.13 per diluted share, compared to $2.1 million or $0.07 per diluted share a year ago. Non-GAAP net income, however, saw a slight decline to $4.7 million from $5.2 million year-over-year, equating to $0.15 per diluted share.
Significantly, AudioCodes' Annual Recurring Revenue (ARR) reached $67 million, an increase of 25% year-on-year, underscoring the successful execution of its strategic priorities. This achievement is bolstered by a 7% increase in Microsoft-related Unified Communications as a Service (UCaaS) business, a 2% growth in Contact Center plans, and a robust over 10% growth in conversational AI services.
In terms of capital management, AudioCodes repurchased 500,000 shares for $5.2 million and distributed a $0.18 per share dividend during the quarter. Their strong cash position further improved, ending at $95.7 million as of March 31, 2025, up from $93.9 million at the end of December 2024.
However, AudioCodes navigated challenges with gross profits affected by new US tariffs on Chinese imports, which the management is actively working to mitigate. Plans are in place to launch a next-generation Live platform in the latter half of 2025, integrating solutions for leading UCaaS vendors with business applications, and potentially enhancing AudioCodes' ecosystem position.
