RADCOM Ltd. RDCM reported fourth-quarter 2024 non-GAAP earnings per share (EPS) of 23 cents, surpassing the Zacks Consensus Estimate by 21.1%. However, the bottom line contracted 8% year over year.

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Revenues in the quarter were a record $16.3 million, beating the Zacks Consensus Estimate by 5.6%. Total revenues jumped 16.1% year over year. 

Management highlighted that the outstanding performance underscores the strength of the company’s cloud and Gen artificial intelligence (AI)-based assurance solution. The company remains deeply committed to innovation, AI and automation, continually investing in research and development (R&D) to strengthen its leadership in 5G assurance, expand its solution offerings and support operators in their transition to next-generation networks.

Radcom Ltd. Price, Consensus and EPS Surprise

Radcom Ltd. price-consensus-eps-surprise-chart | Radcom Ltd. Quote

On Jan. 15, 2025, RDCM signed a multi-year agreement with Norlys, the owner of Telia Denmark, to provide advanced network monitoring solutions. Norlys will use RADCOM ACE to oversee customer experiences across its 5G and 4G networks in Denmark.

Radcom’s Other Details

Non-GAAP net income for the quarter was $3.8 million compared with $3.9 million a year ago.

Non-GAAP operating income was $2.8 million, up 6.7% year over year. Non-GAAP operating expenses for the period were $9.4 million, up from $8 million in the prior-year period.

Cash Flow and Liquidity

As of Dec. 31, 2024, RDCM had $94.7 million in cash, cash equivalents and short-term bank deposits. The company exited the fourth quarter with a cash flow of $12.5 million. This represents RDCM’s highest-ever cash balance and short-term deposit balances while remaining completely debt-free, showcasing a solid liquidity position that enables it to reinvest in technology, acquisitions and strategic growth.

Revenue Guidance for 2025

Driven by healthy momentum, RDCM has provided revenue guidance for full-year 2025. It expects full-year 2025 revenue growth to range between 12% and 15%, with a midpoint of $69.2 million, which implies a 13.5% increase from 2024. For 2024, the company recorded revenues of $61 million, marking an 18.2% year-over-year increase and the fifth consecutive year of revenue growth and increased profitability.

RDCM’s Zacks Rank

RDCM currently carries a Zacks Rank #3 (Hold). Shares of the company have surged 51.7% in the past year compared with the Zacks Computer – Networking industry's growth of 23.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Recent Performance of Other Companies in the Same Space

NETGEAR, Inc. NTGR reported a fourth-quarter 2024 non-GAAP loss per share of 6 cents, which was significantly narrower than the Zacks Consensus Estimate of a loss of 25 cents. The company had reported non-GAAP earnings of 9 cents in the year-ago quarter.

In the past six months, shares of NTGR have gained 93.9%.

Lantronix, Inc. LTRX reported second-quarter fiscal 2025 non-GAAP EPS of 4 cents, which surpassed the Zacks Consensus Estimate of 3 cents. The bottom line decreased 50% from the prior-year quarter's 8 cents.

In the past six months, LTRX shares have declined 9.6%.

Cisco Systems Inc. CSCO reported second-quarter fiscal 2025 adjusted earnings of 94 cents per share, beating the Zacks Consensus Estimate of 91 cents. This compares to earnings of 87 cents per share a year ago.

Shares of CSCO have soared 24.4% in the past year.

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