AudioCodes Ltd. (AUDC) Bundle
A Brief History of AudioCodes
AudioCodes Ltd. was founded in 1993 and has established itself as a leading provider of advanced voice communications and media processing solutions. The company focuses on providing products and services for enterprises and service providers, particularly in the realms of unified communications (UC), contact centers, and AI-driven applications.
Financial Performance Overview
As of September 30, 2024, AudioCodes reported significant financial metrics for the third quarter:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenues | $60.2 million | $61.6 million |
| GAAP Net Income | $2.7 million | $4.3 million |
| Non-GAAP Net Income | $4.9 million | $8.3 million |
| GAAP Earnings Per Share (EPS) | $0.09 | $0.14 |
| Non-GAAP EPS | $0.16 | $0.25 |
| Operating Cash Flow | $7.9 million | Not reported |
Market Position and Growth
AudioCodes has been transitioning towards a cloud-based service model, enhancing its portfolio with AI-driven solutions. In the third quarter of 2024, service revenues grew by 6.4% year-over-year, accounting for 53.9% of total revenues. This shift underscores the company's strategy to increase recurring revenue streams.
Recent Developments
In July 2024, AudioCodes received court approval to repurchase up to $20 million of its ordinary shares. The company declared a cash dividend of $0.18 per share, totaling approximately $5.4 million, paid on August 29, 2024.
Key Metrics Summary
| Category | Q3 2024 | Q3 2023 |
|---|---|---|
| Service Revenue | $32.5 million | $30.5 million |
| Gross Margin (GAAP) | 65.2% | Not reported |
| Operating Margin (GAAP) | 8.1% | Not reported |
| Annual Recurring Revenue (ARR) | $60 million | $48 million |
| Share Buyback | 332,709 shares | Not reported |
Strategic Partnerships
AudioCodes has established long-term partnerships with major corporations, including AT&T, which has significantly contributed to its recurring revenue model. The company focuses on integrating its solutions into Microsoft Teams and enhancing customer experience through advanced AI capabilities in its products.
Conclusion
AudioCodes continues to innovate and adapt to the evolving communications landscape, leveraging its expertise in voice technologies to capture growth opportunities in the cloud communications market.
A Who Owns AudioCodes Ltd. (AUDC)
Shareholder Composition
As of 2024, AudioCodes Ltd. (NASDAQ: AUDC) has a diverse shareholder base, comprising institutional investors, retail investors, and company insiders. The top shareholders are as follows:
| Shareholder Type | Number of Shares | Percentage Ownership |
|---|---|---|
| Institutional Investors | ~15 million | 49.5% |
| Retail Investors | ~10 million | 32.5% |
| Insiders (Management and Board Members) | ~5 million | 18.0% |
Major Institutional Shareholders
The following are the significant institutional shareholders of AudioCodes as of 2024:
| Institution | Shares Held | Percentage Ownership |
|---|---|---|
| BlackRock, Inc. | 4.5 million | 15.0% |
| The Vanguard Group, Inc. | 3.0 million | 10.0% |
| State Street Corporation | 2.5 million | 8.0% |
| Invesco Ltd. | 1.8 million | 6.0% |
Insider Ownership
Insider ownership as of September 30, 2024, reflects a commitment to the company's success. Key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| Shabtai Adlersberg | President & CEO | 1.2 million |
| Niran Baruch | CFO | 600,000 |
| Other Executives | Various | 3.2 million |
Recent Shareholder Actions
In 2024, AudioCodes has been active in managing its capital, including share repurchase programs and dividend distributions:
- Repurchased 332,709 shares for $3.6 million in Q3 2024.
- Declared a cash dividend of $0.18 per share, totaling approximately $5.4 million, paid on August 29, 2024.
Market Performance and Valuation
As of September 30, 2024, AudioCodes has a market capitalization of approximately $300 million, with a stock price of around $9.75 per share. The company's financial performance includes:
| Financial Metric | Value |
|---|---|
| Q3 2024 Revenue | $60.2 million |
| Q3 2024 Net Income | $2.7 million |
| Q3 2024 EBITDA | $5.9 million |
| Cash and Cash Equivalents (as of September 30, 2024) | $23.5 million |
AudioCodes Ltd. (AUDC) Mission Statement
Company Overview
AudioCodes Ltd. is a leading innovator of intelligent cloud communications solutions, empowering enterprises and service providers to build and operate advanced voice networks and unified communications platforms. As of 2024, AudioCodes focuses on enhancing productivity through AI-driven tools and comprehensive communication solutions tailored for modern digital workplaces.
Mission Statement
AudioCodes aims to provide enterprises and service providers with cutting-edge voice connectivity solutions and AI technologies that drive digital transformation, enhance collaboration, and deliver unparalleled communication experiences.
Strategic Goals
- To lead the voice services market for Unified Communications as a Service (UCaaS) and Customer Experience (CX).
- To increase the proportion of recurring revenue through cloud software and services.
- To build and maintain strong partnerships with global companies, enhancing trust and reliability in voice services.
Financial Performance - Third Quarter 2024
In the third quarter of 2024, AudioCodes reported significant financial metrics that reflect its operational performance and strategic focus:
| Metric | Q3 2024 | Q3 2023 | Year-over-Year Change |
|---|---|---|---|
| Revenues | $60.2 million | $61.6 million | -2.2% |
| Service Revenues | $32.5 million | $30.5 million | +6.4% |
| GAAP Net Income | $2.7 million | $4.3 million | -37.2% |
| Non-GAAP Net Income | $4.9 million | $8.3 million | -41.0% |
| GAAP Gross Margin | 65.2% | N/A | N/A |
| Non-GAAP Gross Margin | 65.6% | N/A | N/A |
Key Business Areas and Growth
AudioCodes has emphasized growth in its service revenue streams, particularly through managed services and conversational AI:
- Live managed services, including Live Teams and Live CX, saw a year-over-year growth of 21%.
- The dollar value of contracts signed for conversational AI solutions increased by approximately 50% compared to the previous year.
- Annual recurring revenue (ARR) reached $60 million, up from $48 million at the end of 2023, demonstrating a 40% growth.
Shareholder Returns
In July 2024, AudioCodes received court approval to repurchase up to $20 million of ordinary shares. A cash dividend of $0.18 per share was declared, totaling approximately $5.4 million, which was paid to shareholders in August 2024.
Conclusion
AudioCodes continues to position itself as a leader in the voice services market, focusing on innovation and customer satisfaction through its mission-driven approach and strong financial performance.
How AudioCodes Ltd. (AUDC) Works
Business Model
AudioCodes Ltd. operates primarily in the cloud communications space, providing voice networking, unified communications, and AI-driven productivity tools. The company focuses on offering solutions tailored for enterprises and service providers, enabling them to build and manage advanced voice networks and communication platforms.
Financial Performance
As of the third quarter of 2024, AudioCodes reported the following financial metrics:
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Revenues | $60.2 million | $61.6 million |
| Net income | $2.7 million | $4.3 million |
| Non-GAAP net income | $4.9 million | $8.3 million |
| EBITDA (GAAP) | $5.9 million | $6.4 million |
| EBITDA (Non-GAAP) | $7.9 million | $10.1 million |
| Gross margin (GAAP) | 65.2% | N/A |
| Gross margin (Non-GAAP) | 65.6% | N/A |
Revenue Breakdown
In the third quarter of 2024, service revenues constituted a significant portion of total revenues, reflecting a shift towards recurring revenue models:
| Revenue Category | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Product Revenues | $27.7 million | $31.0 million | -10.6% |
| Service Revenues | $32.5 million | $30.6 million | 6.4% |
Cash Flow and Shareholder Returns
For the third quarter of 2024, AudioCodes reported net cash provided by operating activities of:
- $7.9 million
Additionally, during the quarter, AudioCodes repurchased:
- 332,709 ordinary shares at a total cost of $3.6 million.
In July 2024, the company declared a cash dividend of:
- 18 cents per share, totaling approximately $5.4 million.
Market Position and Strategic Initiatives
AudioCodes has been focusing on expanding its cloud software and services, achieving:
- Annual Recurring Revenue (ARR) growth of 40%, reaching $60 million as of Q3 2024.
- Strengthening partnerships, notably with AT&T, to enhance voice services integration with Microsoft Teams.
Balance Sheet Overview
As of September 30, 2024, AudioCodes reported the following balance sheet figures:
| Balance Sheet Item | Amount (in thousands) |
|---|---|
| Total Assets | $326,433 |
| Total Liabilities | $139,539 |
| Total Shareholders' Equity | $186,894 |
| Cash and Cash Equivalents | $23,522 |
Operational Highlights
Key operational highlights include:
- Growth in Live managed services, particularly in the Live Teams segment, which grew 21% year-over-year.
- Increase in the dollar value of contracts signed in conversational AI by approximately 50% compared to the previous year.
How AudioCodes Ltd. (AUDC) Makes Money
Revenue Streams
AudioCodes generates revenue primarily through two streams: products and services. For the third quarter of 2024, the breakdown of revenues was as follows:
| Revenue Source | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Year-over-Year Change (%) |
|---|---|---|---|
| Products | 27.75 | 31.04 | -10.0 |
| Services | 32.49 | 30.55 | 6.4 |
| Total Revenues | 60.24 | 61.59 | -2.2 |
Product Revenue
Product revenues, which decreased by 10% year-over-year, represent sales of hardware and software solutions. In 2024, these products included:
- Session Border Controllers (SBCs)
- Media Gateways
- IP Phones
- Unified Communications (UC) software solutions
For the nine months ended September 30, 2024, total product revenue was $84.65 million compared to $91.30 million in 2023.
Service Revenue
Service revenues grew by 6.4% year-over-year, accounting for 53.9% of total revenues in Q3 2024. This growth was driven by:
- Managed services, including Live Teams and Live CX
- Conversational AI applications
The total service revenue for the nine months ended September 30, 2024, was $95.98 million, up from $89.53 million in 2023.
Operating Performance
AudioCodes reported the following operating metrics for Q3 2024:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| GAAP Gross Margin | 65.2% | 66.3% |
| GAAP Operating Margin | 8.1% | 11.0% |
| Net Income | $2.7 million | $4.3 million |
| EBITDA | $5.9 million | $6.4 million |
Recurring Revenue Growth
The company's focus on cloud services has led to substantial growth in annual recurring revenue (ARR), which reached $60 million in Q3 2024, a 40% increase from $48 million at the end of 2023.
Cash Flow and Financial Position
As of September 30, 2024, AudioCodes reported:
| Cash and Cash Equivalents ($ millions) | Short-term Deposits ($ millions) | Total Assets ($ millions) |
|---|---|---|
| 23.52 | 0.20 | 326.43 |
Net cash provided by operating activities for Q3 2024 was $7.9 million, down from $19.9 million in Q3 2023.
Shareholder Returns
In 2024, AudioCodes declared a cash dividend of $0.18 per share, amounting to approximately $5.4 million, and repurchased 332,709 ordinary shares at a cost of $3.6 million.
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Resources:
- AudioCodes Ltd. (AUDC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AudioCodes Ltd. (AUDC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AudioCodes Ltd. (AUDC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.