In This Article:
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Revenue: $60.4 million, up 0.5% from $60.1 million in Q1 2024.
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Services Revenue: $32.6 million, representing 54% of total revenues, up 3.4% year-over-year.
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Gross Margin: 64.8%, compared to 64.4% in Q1 2024.
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Operating Income: $3.6 million, or 6% of revenues, compared to $3.3 million, or 5.5% of revenues in Q1 2024.
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Net Income: $4 million, or $0.13 per diluted share, compared to $2.1 million, or $0.07 per diluted share in Q1 2024.
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Non-GAAP Gross Margin: 65.2%, unchanged from Q1 2024.
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Non-GAAP Operating Income: $5.4 million, or 8.9% of revenues, compared to $6.3 million, or 10.5% of revenues in Q1 2024.
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Non-GAAP Net Income: $4.7 million, or $0.15 per diluted share, compared to $5.2 million, or $0.17 per diluted share in Q1 2024.
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Cash and Equivalents: $95.7 million as of March 30, 2025.
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Net Cash from Operating Activities: $13.5 million for Q1 2025.
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Dividend: $0.18 per share, totaling approximately $5.5 million, paid on March 6, 2025.
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Tariff Impact: Estimated additional cost burden of $3 million to $4 million for the full year 2025.
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Deferred Revenues: $81.3 million as of March 30, 2025, compared to $80.5 million as of March 31, 2024.
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Employee Count: 962 employees at the end of Q1 2025.
Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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AudioCodes Ltd (NASDAQ:AUDC) reported a revenue increase of 0.5% year-over-year, reaching $60.4 million for the first quarter of 2025.
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The company's services revenue grew by 3.4% year-over-year, accounting for 54% of total revenues.
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AudioCodes Ltd (NASDAQ:AUDC) achieved a gross margin of 64.8%, slightly higher than the previous year's 64.4%.
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The company is making significant progress in its transformation towards a cloud voice software and services company, with a focus on AI-powered voice services.
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AudioCodes Ltd (NASDAQ:AUDC) has successfully attracted interest from large global system integrators for its conversational AI business voice services.
Negative Points
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The company has withdrawn its annual guidance due to the uncertainty surrounding tariffs and macroeconomic conditions.
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AudioCodes Ltd (NASDAQ:AUDC) faces an estimated additional cost burden of $3 million to $4 million annually due to tariffs.
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Non-GAAP operating income for the first quarter decreased to $5.4 million from $6.3 million in Q1 2024.
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The company's non-GAAP net income per diluted share decreased to $0.15 from $0.17 in Q1 2024.
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The slow growth in services revenue this quarter is attributed to the timing of professional services project completion.