The following is a summary of the AudioCodes Ltd. (AUDC) Q1 2024 Earnings Call Transcript:
Financial Performance:
AudioCodes reported Q1 revenues of $60.1 million, a marginal increase of 1.5% from the previous year.
The gross margin rose to 64.4% from 61.7% in Q1 2023, indicating an improvement in cost efficiency.
Non-GAAP net income for Q1 2024 clocked in at $5.2 million, a significant increase from $2.7 million in Q1 2023.
The company made a substantial investment in improving its new corporate headquarter in Israel and executed a headcount reduction expected to result in annual savings of $6 million.
Its full-year guidance for 2024 predicts revenues in the range of $240 to $250 million and non-GAAP diluted net income per share between $0.85 and $1.
Business Progress:
AudioCodes is transitioning from a network equipment vendor to a software and services company.
Microsoft and Teams business grew by 8% and 9.6% respectively year-over-year.
Services accounted for more than half of revenues, marking a significant transition in the company's revenue streams.
The company expects to continue strong growth in its live business for Microsoft Teams and its new Voca CIC solution.
It also plans to further reduce its headcount as part of a cost reduction initiative, set to be executed in Q2 and Q3 2024.
The company is looking to increase its service output from the 50% benchmark set last year, targeting a rate of 52-55% for this year.
It anticipates the transition from a CapEx model to an OpEx model to continue through 2023, 2024, and possibly the first half of 2025.
Despite a decline in the legacy business, the company maintains a positive outlook for its service pipelines for the rest of FY 2024.
More details: AudioCodes IR
Tips: This article is generated by AI. The accuracy of the content can not be fully guaranteed. For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.