Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Radcom Ltd (NASDAQ:RDCM) achieved a record-breaking year in 2024, exceeding the midpoint of its full-year revenue guidance and marking its fifth consecutive year of growth.
• Earnings per share surged by over 75% on a GAAP basis, and the company achieved the highest cash and short-term deposit balances in its history, totaling $94.7 million, while remaining completely debt-free.
• Radcom Ltd (NASDAQ:RDCM) secured a new multiyear contract with Norlis, the owner of Tele Denmark, reinforcing its position as a trusted partner for telecom operators.
• The company is actively collaborating with ServiceNow to drive additional business, leveraging AI-driven assurance solutions to enhance customer satisfaction and network efficiencies.
• Radcom Ltd (NASDAQ:RDCM) received notable industry recognition, winning the Network Innovation Award for Best Network Test and Measurement Solution, highlighting its innovative approach and advanced AI capabilities.

Negative Points

• The company's net income for the fourth quarter of 2024 remained steady at $3.8 million, unchanged from the same period in 2023, due to low interest rates and higher tax expenses.
• There is no clear visibility regarding future grants from the Israel Innovation Authority beyond the first quarter of 2025, which could impact funding for innovation programs.
• Radcom Ltd (NASDAQ:RDCM) plans to increase its investment in R&D, which may affect short-term profitability as it focuses on developing new capabilities and supporting strategic partnerships.
• Sales and marketing expenses increased significantly in 2024, reflecting the company's efforts to expand its market presence and support an increasing pipeline of opportunities.
• Despite strong cash flow and record cash balances, the company is cautious about pursuing acquisitions and is taking its time to evaluate potential opportunities, which may delay expansion efforts.

Q & A Highlights

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Q: Can you provide more details on the Norlis deal and its significance for Radcom's geographic market expansion? A: The Norlis deal is significant as it introduces Radcom to the European market and aligns with our target customer profile. It's our first time offering efficiencies with GAI capabilities in this region, and we anticipate it will lead to additional wins in Europe, opening up the mid-tier market for us. (Benny Epstein, CEO)

Q: What are your plans regarding go-to-market efforts and sales capacity expansion? A: We are looking to expand both our sales capacity and partnerships. We have announced a partnership with ServiceNow and plan to announce more partnerships soon. We aim to fit our product offerings into the mid-tier market, which, along with partnerships, will help us extend our customer base significantly. (Benny Epstein, CEO)

Q: How are you balancing operating leverage with investments in R&D and sales? A: We aim to maintain the same level of growth and profitability while investing in R&D to introduce new capabilities with GAI and other partners. Our goal is to keep the same level of profitability on the operational side while continuing to invest in R&D. (Benny Epstein, CEO)

Q: Are there any plans for acquisitions, and what market segments are you interested in? A: We are exploring different options for acquisitions but are not in a hurry. We are carefully evaluating opportunities to expand our addressable market in areas close to our current operations. Once we find the right candidate, we will pursue acquisitions. (Benny Epstein, CEO)

Q: What is your initial focus for driving continued growth at Radcom? A: Our focus is on introducing partners and leveraging big companies like ServiceNow to expand our market reach. We aim to penetrate areas outside the network center and into the care domain, enhancing customer experience through our unique data set and platforms like ServiceNow. (Benny Epstein, CEO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.