RADCOM Reports First Quarter 2023 Results

• Revenue grew 13% year-over-year to $12 million
• GAAP Net income of $0.6 million
• Non-GAAP Net income of $1.8 million

TEL AVIV, Israel, May 10, 2023 /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) announced financial results for the first quarter ended March 31, 2023.

"We continued our strong momentum from 2022 into the first quarter of 2023 with a revenue increase of 13% compared to the same quarter last year, a fifteenth consecutive quarter of year-over-year growth. Our solid performance and careful expense management improved all our profitability key performance indicators (KPIs). We also introduced some new product use cases built using advanced artificial intelligence (AI) for 5G, commented RADCOM's Chief Executive Officer Eyal Harari.

Mr. Harari continued, "We significantly improved our profitability this quarter, tripling our non-GAAP net income compared to the first quarter of 2022 and achieving a 15% non-GAAP net margin (5% on a GAAP basis). In addition, our GAAP profitability reached a four-year high, driven by solid team execution and increased revenues.

"As previously announced during the quarter, we signed an agreement with a new customer in North America, expanding our market share and leveraging our success with the recent customers we secured in 2022. We believe this encouraging momentum will continue as operators look to our advanced cloud technology and AI-powered analytics to reduce operational expenses and streamline operations through automation.

"We also completed the acquisition of the assets of Continual Ltd. We believe adding Continual's advanced mobility experience analytics, and intellectual property, will enrich our 5G assurance solution and create new opportunities for RADCOM in top-tier customers like Vodafone.

Mr. Harari concluded, "Based on our current visibility, innovative assurance solutions, and overall market opportunity, we believe all the foundations are in place for a strong 2023. We are reiterating our full-year 2023 revenue guidance of $50 - $53 million."

First quarter 2023 financial highlights:

• Total revenues for the first quarter were $12.0 million, compared to $10.6 million in the first quarter of 2022.
• GAAP net income for the first quarter was $0.6 million, or $0.04 per diluted share, compared to a GAAP net loss of $0.6 million, or $0.04 per diluted share for the first quarter of 2022.
• Non-GAAP net income for the first quarter was $1.8 million, or $0.12 per diluted share, compared to a non-GAAP net income of $0.6 million or $0.04 per diluted share for the first quarter of 2022.  
• As of March 31, 2023, the Company had cash, cash equivalents, and short-term bank deposits of $77.9 million and no debt.

Earnings Conference Call
RADCOM's management will hold an interactive conference call today at 8:00 am Eastern Time (3:00 pm Israel Time) to discuss the results and answer participants' questions. To join the call, please call one of the following numbers approximately five minutes before the call is scheduled to begin:

From the US (toll-free): +1-866-652-8972

From other locations: +972-3-918-0644

For those unable to listen to the call, a replay of the conference call will be available a few hours later in the investor relations section on the Company's website at https://radcom.com/investor-relations/.

For all investor inquiries, please contact:

Investor Relations:

Miri Segal
MS-IR LLC
917-607-8654
[email protected]

Company Contact: 
Hadar Rahav
CFO
+972-77-7745062
[email protected]     

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, 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 2023 revenue guidance, its momentum, the potential to leverage Continual's technology and products to benefit RADCOM with Vodafone and other customers, and its 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, and loss of market share and pressure on prices resulting from competition. 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.

SOURCE RADCOM Ltd.