Q3 2024 AudioCodes Ltd Earnings Call Transcript
Key Points
- AudioCodes Ltd (AUDC) reported a sequential growth of 8% in its Microsoft business, with a notable 9.2% increase in Microsoft Teams business.
- The company's services revenue grew 6.4% year over year, accounting for 54% of total revenue, the highest on record.
- AudioCodes Ltd (AUDC) achieved a 40% year-over-year growth in annual recurring revenue, ending the third quarter at $60 million.
- The company has a strong partnership with AT&T, contributing significantly to its annual recurring revenues.
- AudioCodes Ltd (AUDC) is making substantial progress in its conversational AI business, with a 50% increase in the dollar value of contracts signed compared to the previous year.
- Total revenues for the third quarter decreased by 0.1% compared to the second quarter of the current year.
- The company's GAAP net income decreased to $2.7 million from $3.8 million in the previous quarter.
- Non-GAAP operating income for the third quarter was slightly down at $7 million compared to $7.2 million in Q2 2024.
- The decline in legacy gateway and SBC business continues to impact revenues, with an expected drop of $5 to $10 million in 2025.
- AudioCodes Ltd (AUDC) is incurring losses in its conversational AI business line, with around $9 million in losses expected for 2024.
Greetings, welcome to AudioCodes third quarter, 2024 earnings conference call.
At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Roger L. Chuchen, Vice President of Investor Relations. You may begin.
Thank you, operator hosting the call today are Shabtai Adlersberg, President and Chief Executive Officer and Niran Baruch Vice President of Finance and Chief Financial Officer. Before we begin, I'd like to remind you that the information provided during this call may contain forward-looking statements relating to audio codes, business outlook, future economic performance, product introductions, plans and objectives related there too and statements concerning assumptions made or expectations as to any
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