Poised to Achieve its Sixth Consecutive Year of Revenue Growth
Key 2024 Highlights
Record revenue of $61M, with over 18.2% year over year increase and a 5th consecutive year of revenue growth
Accelerated earnings of $0.43 per diluted share (GAAP) and $0.83 per diluted share (Non-GAAP)
$12.5M positive cash flow, closing the year with a record-high $94.7M in cash and short-term bank deposits
Secured a new customer: Norlys (Telia Denmark)
Strong visibility into 2025, targeting double-digit revenue growth of 12% to 15% year over year
TEL AVIV, Israel, Feb. 12, 2025 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) announced today strong financial results and accelerated profitability for the fourth quarter and full year ended December 31, 2024.
Management Comments:
"2024 was a record-breaking year for RADCOM, driven by exceptional team execution and remarkable achievements. We exceeded the midpoint of our full-year revenue guidance, marking our fifth consecutive year of growth while significantly enhancing profitability. Earnings per share surged by over 75% on a GAAP basis, and we achieved the highest cash and short-term deposits balances in the company's history—$94.7 million—all while remaining completely debt-free," said Benny Eppstein, Chief Executive Officer of RADCOM.
Our record-breaking performance highlights the power of our cloud and Gen AI-based assurance solution that telecom operators need to improve efficiency and deliver exceptional customer experiences. We remain laser-focused on innovation, AI, and automation, continuously investing in research and development (R&D) to reinforce our leadership in 5G assurance, expand our solution portfolio, and support operators as they transition to next-generation networks.
As announced a month ago, following a thorough selection process, we have secured a multi-year contract with Norlys, the owner of Telia Denmark. This win underscores RADCOM's leadership in AI-driven assurance solutions and highlights the success of our strategic investment in European sales and marketing. We have further solidified our reputation as a trusted industry leader by replacing the incumbent assurance vendor.
Looking ahead to 2025, I am excited to lead RADCOM and believe that the best is yet to come. We are establishing strategic partnerships with service management system vendors and other industry leaders in advanced network technologies to enhance our solutions and expand market opportunities. With strong visibility, RADCOM is well positioned to achieve its sixth consecutive year of revenue growth."
Mr. Eppstein concluded, "We anticipate full-year 2025 revenue growth of 12% to 15%, with a midpoint of $69.2 million—representing a 13.5% increase compared to 2024."
Full Year 2024 Financial Highlights:
Total revenues for the full year were $61 million, a new company record, compared to $51.6 million for 2023.
GAAP net income for the full year was $7 million, or $0.43 per diluted share, compared to a GAAP net income of $3.7 million, or $0.24 per diluted share, for 2023.
Non-GAAP net income for the full year amounted to $13.5 million, or $0.83 per diluted share, compared to a non-GAAP net income of $10.2 million, or $0.67 per diluted share for the full year 2023.
Fourth Quarter 2024 Financial Highlights:
Total revenues for the fourth quarter were $16.3 million, compared to $14.0 million in the fourth quarter of 2023, 16.1% year-over-year growth.
GAAP net income for the fourth quarter was $2.2 million, or $0.14 per diluted share, compared to a GAAP net income of $2.6 million, or $0.17 per diluted share, for the fourth quarter of 2023. The decrease was mainly attributed to lower interest income due to decreased interest rates.
Non-GAAP net income for the period was $3.8 million, or $0.23 per diluted share, compared to a non-GAAP net income of $3.8 million, or $0.25 per diluted share, for the fourth quarter of 2023.
As of December 31, 2024, the company had cash and cash equivalents, short-term bank deposits of $94.7 million, and no debt, ending the year with its highest cash levels.
Earnings Conference Call
As mentioned in our last press release, our conference call originally scheduled for February 12, 2025, has been rescheduled to Thursday, February 20, at 8:00 AM Eastern Time (3:00 PM Israel Standard Time). RADCOM management will discuss the results and address participants' questions.
About RADCOM RADCOM (Nasdaq: RDCM) is the leading expert in 5G-ready cloud-native, network intelligence solutions for telecom operators transitioning to 5G. RADCOM Network Intelligence consists of RADCOM Network Visibility, RADCOM Service Assurance, and RADCOM Network Insights. The RADCOM Network Intelligence suite offers intelligent, container-based, on-demand solutions to deliver network analysis from the RAN to the core for 5G assurance. Utilizing automated and dynamic solutions with smart minimal data collection and on-demand troubleshooting, and cutting-edge techniques based on machine learning, these solutions work in harmony to provide operators with an understanding of the entire customer experience and allow them to troubleshoot network performance from a high to granular level while reducing storage costs and cloud resource utilization. For more information on how to RADCOMize your network today, please visit www.radcom.com, the content of which does not form a part of this press release.
Non-GAAP Information Certain non-GAAP financial measures are included in this press release. These non-GAAP financial measures are provided to enhance the reader's overall understanding of the Company's financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718, financial (income) expenses, acquisition-related expenses, and amortization of intangible assets related to acquisitions, the Company's non-GAAP results provide information to both management and investors that is useful in assessing the Company's core operating performance and in evaluating and comparing the Company's results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to evaluate financial results and to plan and forecast future periods. The presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with GAAP.
Risks Regarding Forward-Looking Statements Certain statements made herein that use words such as "estimate," "project," "intend," "expect," "'believe," "may," "might," " potential," "anticipate," "plan" or similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. For example, when the Company discusses its full-year 2025 revenue guidance and growth, its cloud and Gen AI-based solutions and their suitability for network operators needs, its investment in R&D generally and in order to enhance its leadership in 5G assurance, its leadership in AI-driven assurance solutions, its belief that 'the best is yet to come' and its expectation that its strategic partnerships with service management systems vendors and other industry leaders will enhance its solutions and expand market opportunities, it is using forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that could cause the actual results, performance, or achievements of the Company to be materially different from those that may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, decline in demand for the Company's products, inability to timely develop and introduce new technologies, products, and applications, loss of market share and pressure on prices resulting from competition and the effects of the war in Israel. For additional information regarding these and other risks and uncertainties associated with the Company's business, reference is made to the Company's reports filed from time to time with the U.S. Securities and Exchange Commission. The Company does not undertake to revise or update any forward-looking statements for any reason.
RADCOM Ltd.
Consolidated Statements of Operations
Unaudited
(thousands of U.S. dollars, except share and per share data)
Three months ended
Twelve months ended
December 31,
December 31,
2024
2023
2024
2023
Revenues
$ 16,264
$ 14,010
$ 61,009
$ 51,600
Cost of revenues
4,137
3,435
15,746
13,773
Gross profit
12,127
10,575
45,263
37,827
Research and development, gross
4,749
4,327
18,659
19,575
Less - royalty-bearing participation
113
190
684
736
Research and development, net
4,636
4,137
17,975
18,839
Sales and marketing
4,632
3,720
17,794
14,592
General and administrative
1,549
1,297
6,407
5,058
Total operating expenses
10,817
9,154
42,176
38,489
Operating income (loss)
1,310
1,421
3,087
(662)
Financial income, net
1,080
1,248
4,115
4,557
Income before taxes on income
2,390
2,669
7,202
3,895
Taxes on income
142
77
234
182
Net income
$ 2,248
$ 2,592
$ 6,968
$ 3,713
Basic net income per ordinary share
$ 0.14
$ 0.17
$ 0.44
$ 0.25
Diluted net income per ordinary share
$ 0.14
$ 0.17
$ 0.43
$ 0.24
15,878,186
15,291,917
15,666,457
15,098,642
Weighted average number of
ordinary shares used in computing basic net income per ordinary share
Weighted average number of
16,612,554
15,446,177
16,155,150
15,297,947
ordinary shares used in computing diluted net income per ordinary share
RADCOM LTD.
Reconciliation of GAAP to Non-GAAP Financial Information
Unaudited
(thousands of U.S. dollars, except share and per share data)
Three months ended
Twelve months ended
December 31,
December 31,
2024
2023
2024
2023
GAAP gross profit
$ 12,127
$ 10,575
$ 45,263
$ 37,827
Stock-based compensation
91
71
381
441
Amortization of intangible assets
57
57
225
151
Non-GAAP gross profit
$ 12,275
$ 10,703
$ 45,869
$ 38,419
$ 4,636
$ 4,137
$ 17,975
$ 18,839
GAAP research and development, net
Stock-based compensation
497
424
2,047
2,690
Non-GAAP research and development, net
$ 4,139
$ 3,713
$ 15,928
$ 16,149
$ 4,632
$ 3,720
$ 17,794
$ 14,592
GAAP sales and marketing
Stock-based compensation
506
370
2,023
1,820
Amortization of intangible assets
29
29
116
77
Non-GAAP sales and marketing
$ 4,097
$ 3,321
$ 15,655
$ 12,695
$ 1,549
$ 1,297
$ 6,407
$ 5,058
GAAP general and administrative
Stock-based compensation
380
319
1,645
1,168
Acquisition related expenses
-
-
-
56
Non-GAAP general and administrative
$ 1,169
$ 978
$ 4,762
$ 3,834
$ 10,817
$ 9,154
$ 42,176
$ 38,489
GAAP total operating expenses
Stock-based compensation
1,383
1,113
5,715
5,678
Amortization of intangible assets
29
29
116
77
Acquisition related expenses
-
-
-
56
Non-GAAP total operating expenses
$ 9,405
$ 8,012
$ 36,345
$ 32,678
$ 1,310
$ 1,421
$ 3,087
$ (662)
GAAP operating income (loss)
Stock-based compensation
1,474
1,184
6,096
6,119
Amortization of intangible assets
86
86
341
228
Acquisition related expenses
-
-
-
56
Non-GAAP operating income
$ 2,870
$ 2,691
$ 9,524
$ 5,741
RADCOM LTD.
Reconciliation of GAAP to Non-GAAP Financial Information
Unaudited
(thousands of U.S. dollars, except share and per share data)
Three months ended
December 31,
Twelve months ended
December 31,
2024
2023
2024
2023
GAAP income before taxes on income
$ 2,390
$ 2,669
$ 7,202
$ 3,895
Stock-based compensation
1,474
1,184
6,096
6,119
Amortization of intangible assets
86
86
341
228
Acquisition related expenses
-
-
-
56
Financial (income) expenses
(28)
(15)
84
60
Non-GAAP income before taxes on income
$ 3,922
$ 3,924
$ 13,723
$ 10,358
GAAP net income
$ 2,248
$ 2,592
$ 6,968
$ 3,713
Stock-based compensation
1,474
1,184
6,096
6,119
Amortization of intangible assets
86
86
341
228
Acquisition related expenses
-
-
-
56
Financial (income) expenses
(28)
(15)
84
60
Non-GAAP net income
$ 3,780
$ 3,847
$ 13,489
$ 10,176
GAAP net income per diluted share
$ 0.14
$ 0.17
$ 0.43
$ 0.24
Stock-based compensation
0.09
0.08
0.38
0.43
Amortization of intangible assets
(*)
(*)
0.02
(*)
Acquisition related expenses
(*)
(*)
(*)
(*)
Financial (income) expenses
(*)
(*)
(*)
(*)
Non-GAAP net income per diluted share
$ 0.23
$ 0.25
$ 0.83
$ 0.67
Weighted average number of shares used to compute diluted net income per share
