AudioCodes Reports Q3 2024 Financial Results

Audiocodes ( (AUDC) ) has released its Q3 earnings. Here is a breakdown of the information Audiocodes presented to its investors.

AudioCodes, a prominent player in unified communications and AI-driven voice applications, has reported its financial results for the third quarter of 2024, reflecting a mix of growth in service revenues and a slight decline in overall revenue. The company is known for its innovative solutions in the communications sector, catering to enterprises globally.

In the recent earnings report, AudioCodes announced a 2.2% year-over-year decrease in total quarterly revenues to $60.2 million. However, service revenues showed a positive trend with a 6.4% increase, reaching $32.5 million. The company’s transformation towards a cloud software and services model, emphasizing recurring revenue streams, continues to gain momentum.

Key financial metrics highlight a quarterly GAAP operating margin of 8.1% and a non-GAAP operating margin of 11.7%. The company reported a net income of $2.7 million under GAAP and $4.9 million on a non-GAAP basis, with earnings per diluted share of $0.09 and $0.16, respectively. Operating cash flow remained strong at $7.9 million, and the company actively engaged in share repurchases, spending $3.6 million during the quarter.

AudioCodes’ strategic focus on managed services and conversational AI has resulted in a 40% year-over-year growth in annual recurring revenue (ARR), now at $60 million. The company sees significant opportunities in its partnerships and product offerings, particularly in Microsoft Teams integrations and AI-enhanced communications solutions.

Looking ahead, AudioCodes’ management remains optimistic about its growth trajectory and market position. The company aims to enhance its top-line performance as it advances its strategic initiatives in unified communications and AI technologies, which are expected to drive further success in 2025 and beyond.