AudioCodes Reports Fourth Quarter and Full Year 2024 Results and Declares Semi-Annual Dividend of 18 cents per share

OR YEHUDA, Israel, Feb. 4, 2025 /PRNewswire/ —

Fourth Quarter and Full Year 2024 Highlights

  • Quarterly revenues decreased by 3.2% year-over-year to $61.6 million;
    full year 2024 revenues decreased by 0.9% to $242.2 million.
  • Quarterly service revenues increased by 10.9% year-over-year to $34.2 million;
    full year 2024 service revenues increased by 8.2% to $130.2 million.
  • GAAP results:
    – Quarterly GAAP gross margin was 66.2%;
    – Quarterly GAAP operating margin was 6.7%;
    – Quarterly GAAP EBITDA was $5.2 million;
    – Quarterly GAAP net income was $6.8 million, or $0.22 per diluted share; and
    – Full year 2024 GAAP net income was $15.3 million, or $0.50 per diluted share.
  • Non-GAAP results:
    – Quarterly Non-GAAP gross margin was 66.5%;
    – Quarterly Non-GAAP operating margin was 12.2%;
    – Quarterly Non-GAAP EBITDA was $8.5 million;
    – Quarterly Non-GAAP net income was $11.6 million, or $0.37 per diluted share; and
    – Full year 2024 Non-GAAP net income was $27.3 million, or $0.87 per diluted share.
  • Net cash provided by operating activities was $15.3 million for the quarter and $35.3 million for the full year 2024.
  • AudioCodes repurchased 634,533 of its ordinary shares during the quarterly period ended December 31, 2024 at an aggregate cost of $6.0 million.
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Details

AudioCodes (NASDAQ: AUDC), a leading provider of unified communications voice, contact center and conversational AI applications and services for enterprises, today announced its financial results for the fourth quarter and full year period ended December 31, 2024.

Revenues for the fourth quarter of 2024 were $61.6 million compared to $60.2 million for the third quarter of 2024 and compared to $63.6 million for the fourth quarter of 2023. Revenues were $242.2 million in 2024 compared to $244.4 million in 2023.

EBITDA for the fourth quarter of 2024 was $5.2 million compared to $7.9 million for the fourth quarter of 2023. EBITDA was $21.1 million in 2024 compared to $17.0 million in 2023.

On a Non-GAAP basis, EBITDA for the fourth quarter of 2024 was $8.5 million compared to $11.2 million for the fourth quarter of 2023. EBITDA was $31.4 million in 2024 compared to $31.0 million in 2023.

Net income was $6.8 million, or $0.22 per diluted share, for the fourth quarter of 2024 compared to net income of $3.7 million, or $0.12 per diluted share, for the fourth quarter of 2023. Net income was $15.3 million, or $0.50 per diluted share in 2024, compared to $8.8 million, or $0.28 per diluted share in 2023.

On a Non-GAAP basis, net income was $11.6 million, or $0.37 per diluted share, for the fourth quarter of 2024 compared to $8.9 million, or $0.28 per diluted share, for the fourth quarter of 2023. Non-GAAP net income was $27.3 million, or $0.87 per diluted share in 2024 compared to $25.0 million, or $0.77 per diluted share in 2023.

Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to intangible assets; (iii) expenses related to deferred payments in connection with the acquisition of Callverso Ltd; (iv) financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies; (v) tax impact which relates to our Non-GAAP adjustments; (vi) with respect to Q1 2024, non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the lease for the Company’s new headquarters; and (vii) a one-time, non-recurring settlement expense attributable to the Settlement Agreement (as defined below). A reconciliation of net income on a GAAP basis to a non-GAAP basis is provided in the tables that accompany the condensed consolidated financial statements contained in this press release.

On December 25, 2024, we entered into a settlement (the “Settlement Agreement”) with the landlord of our prior headquarters in connection with the termination of the related lease agreement. Pursuant to the Settlement Agreement, we incurred a one-time, non-recurring settlement expense of approximately $1.4 million during the quarterly period in the form of a cash payment made to the landlord.

Net cash provided by operating activities was $15.3 million for the fourth quarter of 2024 and $35.3 million for 2024.

Cash and cash equivalents, short-term bank deposits, long and short-term marketable securities and long-term financial investments were $93.9 million as of December 31, 2024, compared to $106.7 million as of December 31, 2023. The decrease in cash and cash equivalents, short-term bank deposits, long and short-term marketable securities and long-term financial investments was the result of the use of cash for the continued repurchasing of the Company’s ordinary shares pursuant to its share repurchase program, payment of a cash dividend during each of the first and third quarters of 2024, and the purchase of property and equipment related to leasehold improvements of our new corporate headquarters in Israel, offset, in part, by cash generated from operating activities.

“I am pleased to report solid fourth quarter performance, with healthy growth in key business lines, taking us further on our transformative evolution to a cloud software and services company,” said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes.

Enterprise UCaaS and CX business accounted for 92% of revenues in the fourth quarter, within which our UCaaS business performed well, highlighted by Microsoft business up 13% in the quarter, representing the highest quarterly growth rate this year.  Full year Microsoft business increased 6%, driven mainly by the ongoing transition of our revenue model from perpetual sales to recurrent revenue sales.  Live managed services mix within Microsoft business increased 30% year-over-year, and reached a level of 47% of business, compared to 40% in the year ago quarter.  This growth, coupled with 30% growth in Voice.ai business for the full year 2024, contributed to us ending 2024 with ARR at $65 million, representing 35% year-over-year growth.  We expect the recurring revenue business momentum to continue driving our sales for the UCaaS and CX markets in 2025 and beyond.  With the shift in focus for end customers towards Value-Added Services, we expect to see a rise in demand for our Voice.ai application solutions, and an increased interest in our Live Platform, which consolidates connectivity, management, and Value-Added Services through one integrated AudioCodes’ platform.

The significant investments we have in our Voice.ai and conversational AI portfolio over the last several years are paying off. Individual business units have emerged as leaders in their respective categories.  Additionally, with growing customer demand for AI and Gen AI driven business voice applications and Value-added Services, we have seen a surge in our pipeline of created opportunities in Voice.ai connect, Voca CIC and Meeting Insights applications.  The growth in AI business applications is solid and we expect this segment to grow 40% to 50% in 2025.  

Overall, we exited 2024 with good operational momentum, particularly with the continued strong growth in our two primary engines, namely our Live family of managed services and Voice.ai. With the progress we are making in increasing our recurring revenues and the robust pipeline of opportunities, we expect to see improved top-line growth in 2025 and beyond,” concluded Mr. Adlersberg.

Share Buy Back Program

During the quarter ended December 31, 2024, the Company acquired 634,533 of its ordinary shares under its share repurchase program for a total consideration of $6.0 million.

In December 2024, the Company received court approval in Israel to purchase up to an aggregate amount of $20 million of additional ordinary shares. The court approval also permits AudioCodes to declare a dividend out of any part of this amount. The approval is valid through June 14, 2025.

As of December 31, 2024, the Company had $19 million available under this approval for the repurchase of shares and/or declaration of cash dividends.

Cash Dividend

AudioCodes also announced today that the Company’s Board of Directors has declared a cash dividend in the amount of 18 cents per share. The aggregate amount of the dividend is approximately $5.3 million. The dividend is payable on March 6, 2025, to all of the Company’s shareholders of record at the close of trading on the NASDAQ Global Select Market on February 20, 2025.

In accordance with Israeli tax law, the dividend is subject to withholding tax at source at the rate of 25% of the dividend amount payable to each shareholder of record, subject to applicable exemptions. If the recipient of the dividend is at the time of distribution or was at any time during the preceding 12-month period the holder of 10% or more of the Company’s share capital, the withholding rate is 30%.

The dividend will be paid in U.S. dollars on the ordinary shares of AudioCodes Ltd. that are traded on the Nasdaq Global Select Market or the Tel-Aviv Stock Exchange. The amount and timing of any other dividends will be determined by the Company’s Board of Directors.

Conference Call & Web Cast Information

AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company’s fourth quarter and full year of 2024 operating performance, financial results and outlook. Interested parties may participate in the conference call by dialing one of the following numbers:

United States Participants: 888-506-0062

International Participants: +1 (973) 528-0011

The conference call will also be simultaneously webcast. Investors are invited to listen to the call live via webcast at the AudioCodes investor website at http://www.audiocodes.com/investors-lobby.

About AudioCodes

AudioCodes (NASDAQ, TASE: AUDC) is a leading innovator of intelligent cloud communications solutions. AudioCodes empowers enterprises and service providers to build and operate state-of-the-art voice networks, unified communications platforms, and AI-driven productivity tools. The cutting-edge portfolio includes cloud-native applications, advanced Voice.ai technologies, and comprehensive communication solutions tailored for the modern digital workplace. Trusted by global Fortune 500 companies and tier-1 operators worldwide, AudioCodes drives digital transformation through seamless integration, enhanced collaboration, and unparalleled communication experiences.

For more information, visit http://www.audiocodes.com.

Follow AudioCodes’ social media channels:

AudioCodes invites you to join our online community and follow us on: AudioCodes Voice Blog, LinkedIn, Twitter, Facebook, and YouTube.

Statements concerning AudioCodes’ business outlook or future economic performance; product introductions and plans and objectives related thereto; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are “forward-looking statements” as that term is defined under U.S. Federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to: the effect of global economic conditions in general and conditions in AudioCodes’ industry and target markets in particular; shifts in supply and demand; market acceptance of new products and the demand for existing products; the impact of competitive products and pricing on AudioCodes’ and its customers’ products and markets; timely product and technology development, upgrades and the ability to manage changes in market conditions as needed; possible need for additional financing; the ability to satisfy covenants in the Company’s loan agreements; possible disruptions from acquisitions; the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes’ business; possible adverse impact of the COVID-19 pandemic on our business and results of operations; the effects of the current terrorist attacks by Hamas in Israel, and the war and hostilities between Israel and Hamas, and Israel and Hezbollah as well as the possibility that this could develop into a broader regional conflict involving Israel with other parties, may affect our operations and may limit our ability to produce and sell our solutions; any disruption in our operations by the obligations of our personnel to perform military service as a result of current or future military actions involving Israel; and other factors detailed in AudioCodes’ filings with the U.S. Securities and Exchange Commission. AudioCodes assumes no obligation to update the information in this release.

©2025 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What’s Inside Matters, OSN, SmartTAP, User Management Pack, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, VocaNom, AudioCodes One Voice, AudioCodes Meeting Insights, AudioCodes Room Experience are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners. Product specifications are subject to change without notice.

Summary financial data follows

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS 

U.S. dollars in thousands  

December 31,

December 31,

2024

2023

(Unaudited)

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$ 58,749

$ 30,546

Short-term and restricted bank deposits

210

212

Short-term marketable securities

3,426

7,438

Trade receivables, net

56,016

51,125

Other receivables and prepaid expenses

13,012

9,381

Inventories

31,463

43,959

Total current assets

162,876

142,661

LONG-TERM ASSETS:

Long-term Trade receivables

$ 15,753

$ 16,798

Long-term marketable securities

28,518

65,732

Long-term financial investments

3,008

2,730

Deferred tax assets

9,838

6,208

Operating lease right-of-use assets

32,534

36,712

Severance pay funds

18,004

17,202

Total long-term assets

107,655

145,382

PROPERTY AND EQUIPMENT, NET

27,321

10,893

GOODWILL, INTANGIBLE ASSETS AND OTHER, NET

38,049

38,581

Total assets

$ 335,901

$ 337,517

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

Trade payables

7,543

7,556

Other payables and accrued expenses

25,823

29,943

Deferred revenues

38,438

38,820

Short-term operating lease liabilities

5,954

7,878

Total current liabilities

77,758

84,197

LONG-TERM LIABILITIES:

Accrued severance pay

$ 16,387

$ 16,662

Deferred revenues and other liabilities

19,434

17,142

Long-term operating lease liabilities

30,508

31,404

Total long-term liabilities

66,329

65,208

Total shareholders’ equity

191,814

188,112

Total liabilities and shareholders’ equity

$ 335,901

 

$ 337,517

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands, except per share data

Year ended

Three months ended

December 31,

December 31,

2024

2023

2024

2023

(Unaudited)

(Unaudited)

(Unaudited)

Revenues:

Products

$ 111,966

$ 123,991

$  27,319

$  32,692

Services

130,210

120,392

34,235

30,867

Total Revenues

242,176

244,383

61,554

63,559

Cost of revenues:

Products

44,448

47,964

10,325

11,396

Services

39,567

38,070

10,510

9,771

Total Cost of revenues

84,015

86,034

20,835

21,167

Gross profit

158,161

158,349

40,719

42,392

Operating expenses:

Research and development, net

52,125

57,169

12,345

13,806

Selling and marketing

71,167

70,243

18,740

17,496

General and administrative

17,678

16,513

5,532

3,856

Total operating expenses

140,970

143,925

36,617

35,158

Operating income

17,191

14,424

4,102

7,234

Financial income (expenses), net

(2,095)

(52)

(1,900)

(1,740)

Income before taxes on income

15,096

14,372

2,202

5,494

Taxes on income, net

215

(5,592)

4,573

(1,839)

Net income

$ 15,311

$ 8,780

$ 6,775

$ 3,655

Basic net earnings per share

$ 0.51

$ 0.28

$ 0.23

$ 0.12

Diluted net earnings per share

$ 0.50

$ 0.28

$ 0.22

$ 0.12

Weighted average number of shares used in computing basic net earnings per share (in thousands)

30,162

31,401

29,932

30,678

Weighted average number of shares used in computing diluted net earnings per share (in thousands)

30,642

31,579

30,260

30,893

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME 

U.S. dollars in thousands, except per share data

Year ended

Three months ended

December 31,

December 31,

2024

2023

2024

2023

(Unaudited)

(Unaudited)

(Unaudited)

GAAP net income

$ 15,311

$ 8,780

$ 6,775

$ 3,655

GAAP net earnings per share

$ 0.50

$ 0.28

$ 0.22

$ 0.12

Cost of revenues:

Share-based compensation (1)

369

388

95

84

Amortization expenses (2)

488

501

122

122

Lease expenses (6)

304

685

363

1,161

1,574

217

569

Research and development, net:

Share-based compensation (1)

2,108

2,685

466

595

Deferred payments expenses (3)

770

408

Lease expenses (6)

342

430

55

2,450

3,885

466

1,058

Selling and marketing:

Share-based compensation (1)

2,959

4,297

704

917

Amortization expenses (2)

44

44

11

11

Deferred payments expenses (3)

86

46

Lease expenses (6)

38

430

55

3,041

4,857

715

1,029

General and administrative:

Share-based compensation (1)

2,792

4,010

679

768

Settlement with former headquarter office landlord (7)

1,355

1,355

Lease expenses (6)

76

171

91

4,223

4,181

2,034

859

Financial expenses (income):

Exchange rate differences (4)

507

205

1,261

1,442

Income taxes:

Taxes on income, net (5)

585

1,549

163

302

Non-GAAP net income

$ 27,278

$ 25,031

$ 11,631

$ 8,914

Non-GAAP diluted net earnings per share

$ 0.87

$ 0.77

$ 0.37

$ 0.28

Weighted average number of shares used in computing

Non-GAAP diluted net earnings per share (in thousands)

31,449

32,637

31,192

31,937

 

(1)  Share-based compensation expenses related to options and restricted share units granted to employees and others.

(2)  Amortization expenses related to intangible assets.

(3)  Expenses related to deferred payments in connection with the acquisition of Callverso Ltd.

(4)  Financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies.

(5)  Tax impact which relates to our non-GAAP adjustments.

(6)  With respect to Q1 2024, non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the lease for the Company’s new headquarters.

(7)  A one-time, non-recurring expense attributable to the Settlement Agreement.

 

Note:  Non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.  The Company believes that non-GAAP information is useful because it can enhance the understanding of its ongoing economic performance and therefore uses internally this non-GAAP information to evaluate and manage its operations. The Company has chosen to provide this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results and because many comparable companies report this type of information. 

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

U.S. dollars in thousands

Year ended

Three months ended 

December 31,

December 31,

2024

2023

2024

2023

(Unaudited)

(Unaudited)

(Unaudited)

Cash flows from operating activities:

Net income

$ 15,311

$ 8,780

$ 6,775

$ 3,655

Adjustments required to reconcile net income to net

cash provided by operating activities:

 

Depreciation and amortization

3,883

2,596

1,095

624

Net loss from sale of marketable securities

882

218

608

Amortization of marketable securities premiums and

accretion of discounts, net

1,120

1,130

509

321

Decrease (increase) in accrued severance pay, net

(1,077)

(362)

(378)

131

Share-based compensation expenses

8,228

11,380

1,944

2,364

Decrease (increase) in deferred tax assets, net

(4,548)

1,437

(5,374)

273

Cash financial loss (income), net

313

(218)

176

179

Decrease in operating lease right-of-use assets

6,009

9,281

1,254

2,593

Decrease (increase) in operating lease liabilities

(4,651)

(6,914)

(720)

1,497

Decrease (increase) in trade receivables, net

(3,846)

1,600

2,168

(3,045)

Decrease (increase) in other receivables and prepaid

expenses

(3,631)

625

(927)

(947)

Decrease (increase) in inventories

12,283

(7,791)

2,164

814

Increase (decrease in trade payables

(13)

(3,782)

2,064

918

Increase (decrease) in other payables and accrued

expenses

3,223

(6,233)

3,817

181

Increase (decrease) in deferred revenues

1,767

3,144

136

(279)

Net cash provided by operating activities

35,253

14,891

15,311

9,279

Cash flows from investing activities:

Proceeds from short-term deposits

2

4,998

(8)

(10)

Proceeds from sale of marketable securities

35,177

3,846

25,186

Proceeds from financial investment

132

56

Proceeds from redemption of marketable securities

7,450

3,084

4,000

Proceeds from redemption of financial investments

14,094

Purchase of financial investments

(675)

(81)

Purchase of property and equipment

(24,280)

(5,965)

(3,512)

(664)

 

Net cash provided by (used in) investing activities

17,806

19,976

25,722

(674)

 

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

U.S. dollars in thousands

Year ended

Three months ended

December 31,

December 31,

2024

2023

2024

2023

(Unaudited)

(Unaudited)

(Unaudited)

Cash flows from financing activities:

Purchase of treasury shares

(14,328)

(18,259)

(5,988)

(6,286)

Cash dividends paid to shareholders

(10,896)

(11,399)

Proceeds from issuance of shares upon exercise of options

368

802

182

548

Net cash used in financing activities

(24,856)

(28,856)

(5,806)

(5,738)

Net increase in cash, cash equivalents, and restricted

  cash

28,203

6,011

35,227

2,867

Cash, cash equivalents and restricted cash at beginning

  of period

30,546

24,535

23,522

27,679

Cash, cash equivalents and restricted cash at end of

  period

$ 58,749

$ 30,546

$ 58,749

$ 30,546

 

 

Company Contacts

Niran Baruch,
Chief Financial Officer

AudioCodes

Tel: +972-3-976-4000
[email protected]

Roger L. Chuchen,

VP, Investor Relations
AudioCodes

Tel:  732-764-2552

[email protected]

 

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