AudioCodes Clocks 7% Revenue Growth In Q4 Backed By Microsoft, Zoom

  • AudioCodes Ltd (NASDAQ: AUDC) reported fourth-quarter FY22 revenue growth of 6.9% year-on-year to $70.7 million, missing the consensus of $72.4 million.
  • Product revenue rose 0.8% Y/Y to $42.02 million, while Services revenue grew 17.2% Y/Y to $28.64 million. The company said it saw ongoing momentum of AudioCodes Live managed services.
  • Margins: The non-GAAP gross margin contracted 180 basis points to 65.8% due to higher component costs
  • The non-GAAP operating margin contracted 270 basis points to 17.7%.
  • The non-GAAP EPS of $0.36 missed the consensus of $0.37.
  • AudioCodes generated $0.42 million in operating cash flow and held $124.3 million in cash and equivalents.
  • Dividend: The board declared a semi-annual cash dividend of $0.18 per share.
  • CEO Shabtai Adlersberg said, "We see growing business activity in UCaaS and CX, and with the ongoing proliferation of AI in the enterprise, we believe we are well-positioned to extend our leadership in applying AI to voice applications and emerge a stronger and more competitive player."
  • "Primary growth engine during the year came from our Microsoft-related business, which grew 12% year-over-year in the quarter and 18% for the full year. Our Microsoft Corp MSFT Microsoft Teams business grew 33% for the full year. We saw ongoing momentum of AudioCodes Live managed services, which exited the year at over $30 million, growing close to 80% year-over-year, with TCV expanding to over $100 million. Service revenue grew 18% year-over-year and accounted for 40.3% of revenues, up from 37.7% a year ago. Another growth vector in UCaaS is our business in the Zoom Video Communications, Inc ZM Zoom ecosystem, which grew above 50% year over year."
  • Price Action: AUDC shares closed lower by 3.19% at $19.75 on Monday.
Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!