RADCOM Reports Fourth Quarter and Full Year 2022 Results
02/08/2023 - 07:00 AM
Record full year revenues of $46.1 million 14% year-over-year growth Inflection point with net income of $2.9M $2.3M Positive cash flow of $7 million TEL AVIV, Israel Feb. 8, 2023 RADCOM Ltd. (Nasdaq: RDCM) announced financial results for the fourth quarter and full year ended December 31, 2022 .
Management Comments:
Eyal Harari , RADCOM's Chief Executive Officer, commented, "The fourth quarter was a solid finish for a record year as we expanded our install base with multiple top-tier mobile operators. In 2022, we grew by 14% , a third consecutive year of revenue growth for the Company.
"This year, we reached an inflection point for the Company, delivering a profitable year on a non-GAAP basis while generating a positive cash flow and ending the year with a record level of cash.
"Our new multi-year contracts secured during 2022 on top of our current agreements provide good visibility and a strong backlog for 2023 and beyond. We also had an encouraging start to 2023 as we secured another North American contract for our solutions.
"As the business grows, we carefully manage our expenses and believe we can maintain scalable, profitable growth. Combining this with our solid pipeline, best-in-class assurance solutions, and overall market opportunity, we believe all the foundations are in place for a strong 2023 that will bring a fourth consecutive year of growth.
Mr. Harari concluded, "We believe the positive momentum generated in 2022 will continue this year, despite possible macroeconomic headwinds. Based on our current visibility, we are providing full-year 2023 revenue guidance of $50 $53 million
Fourth Quarter 2022 Financial Highlights:
Total revenues for the fourth quarter were $12.3 million $11.2 million GAAP net loss for the fourth quarter was $0.03 million $0.00 $1.4 million $0.10 Non-GAAP net income for the period was $1.3 million $0.09 $0.2 million $0.02 As of December 31, 2022 , the Company had cash and cash equivalents, short-term bank deposits of $77.7 million Full Year 202 2 Financial Highlights:
Total revenues for the full year were $46.1 million $40.3 million GAAP net loss for the full year was $2.3 million $0.16 $5.3 million $0.37 Non-GAAP net income for the full year amounted to $2.9 million $0.19 $1.9 million $0.13 Earnings Conference Call 8:00 am Eastern Time (3:00 pm Israel Daylight 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, a conference call replay 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 Segalmsegal@ms-ir.com
Company Contact:
Hadar Rahav hadar.rahav@radcom.com
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, and expectations regarding its growth, including sustainable, profitable growth, momentum, pipeline, market conditions, market opportunities, and visibility and backlog in 2023 and beyond, it uses 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 the 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.
RADCOM Ltd.
Consolidated Statements of Operations
Three months ended
Twelve months ended
2022
2021
2022
2021
(unaudited)
(unaudited)
(unaudited)
(audited)
Revenues
$ 12,289
$ 11,158
$ 46,051
$ 40,282
Cost of revenues
3,391
3,435
12,714
11,423
Gross profit
8,898
7,723
33,337
28,859
Research and development, gross
5,290
5,226
21,483
20,347
Less - royalty-bearing
160
194
762
537
Research and development, net
5,130
5,032
20,721
19,810
Sales and marketing
3,281
2,726
12,270
10,358
General and administrative
1,225
1,237
4,460
4,184
Total operating expenses
9,636
8,995
37,451
34,352
Operating loss
(738)
(1,272)
(4,114)
(5,493)
Financial income (expenses), net
751
(40)
2,016
354
Income (loss) before taxes on
13
(1,312)
(2,098)
(5,139)
Taxes on income
(39)
(39)
(159)
(124)
Net loss
$ (26)
$ (1,351)
$ (2,257)
$ (5,263)
Basic and diluted net loss per
ordinary share
$ (0.00)
$ (0.10)
$ (0.16)
$ (0.37)
Weighted average number of
14,717,096
14,158,074
14,525,449
14,124,404
RADCOM LTD. Reconciliation of GAAP to Non-GAAP Financial Information Unaudited (thousands of U.S. dollars, except share and per share data)
T h r e e months ended
December 31,
Twelve m on t h s ended
December 31,
2022
2021
2022
2021
GAAP gross profit
$ 8,898
$ 7,723
$ 33,337
$ 28,859
S tock-based compensation
100
83
392
207
N on - G AA P gross profit
$ 8,998
$ 7,806
$ 33,729
$ 29,066
G AA P research and development, net
$ 5,130
$ 5,032
$ 20,721
$ 19,810
S tock-based compensation
602
478
2,497
1,368
N on - G AA P research and development, net
$ 4,528
$ 4,554
$ 18,224
$ 18,442
G AA P sales and marketing
$ 3,281
$ 2,726
$ 12,270
$ 10,358
S tock-based compensation
361
153
1,387
865
N on - G AA P sales and marketing
$ 2,920
$ 2,573
$ 10,883
$ 9,493
G AA P general and administrative
$ 1,225
$ 1,237
$ 4,460
$ 4,184
S tock-based compensation
283
400
895
919
N on - G AA P general and administrative
$ 942
$ 837
$ 3,565
$ 3,265
G AA P total operating expenses
$ 9,636
$ 8,995
$ 37,451
$ 34,352
S tock-based compensation
1,246
1,031
4,779
3,152
N on - G AA P total operating expenses
$ 8,390
$ 7,964
$ 32,672
$ 31,200
G AA P operating loss
$ (738)
$ (1,272)
$ (4,114)
$ (5,493)
S tock-based compensation
1,346
1,114
5,171
3,359
N on - G AA P operating income (loss)
$ 608
$ (158)
$ 1,057
$ (2,134)
G AA P Income (loss) before taxes on income
$ 13
$ (1,312)
$ (2,098)
$ (5,139)
S tock-based compensation
1,346
1,114
5,171
3,359
N on - G AA P income (loss) before taxes on income
$ 1,359
$ (198)
$ 3,073
$ (1,780)
G AA P net loss
$ (26)
$ (1,351)
$ (2,257)
$ (5,263)
S tock-based compensation
1,346
1,114
5,171
3,359
N o n-GAAP net income (loss)
$ 1,320
$ (237)
$ 2,914
$ (1,904)
G AA P net loss per diluted share
$ (0.00)
$ (0.10)
$ (0.16)
$ (0.37)
S tock-based compensation
0.09
0.08
0.35
0.24
N o n-GAAP net income (loss) per diluted share
$ 0.09
$ (0.02)
$ 0.19
$ (0.13)
W ei g h ted average number of shares used to compute diluted net income (loss) per share
15,329,035
14,158,074
14,997,667
14,124,404
RADCOM Ltd. Consolidated Balance Sheets (thousands of U.S. dollars)
As of
As of
December 31,
2022
December 31,
2021
(unaudited)
(audited)
Current Assets
Cash and cash equivalents
$ 9,527
$ 11,948
Short-term bank deposits
68,132
58,621
Trade receivables, net
11,074
10,031
Inventories
795
931
Other accounts receivable and prepaid expenses
1,928
1,964
Total Current Assets
91,456
83,495
Non-Current Assets
Severance pay fund
3,524
3,840
Other long-term receivables
2,557
1,258
Property and equipment, net
1,010
1,260
Operating lease right-of-use assets
2,457
1,808
Total Non-Current Assets
9,548
8,166
Total Assets
$ 101,004
$ 91,661
Liabilities and Shareholders' Equity
Current Liabilities
Trade payables
$ 2,708
$ 2,651
Deferred revenues and advances from customers
7,037
2,700
Employee and payroll accruals
5,198
4,422
Operating lease liabilities
1,024
1,045
Other liabilities and accrued expenses
6,829
5,428
Total Current Liabilities
22,796
16,246
Non-Current Liabilities
Accrued severance pay
3,973
4,335
Operating lease liabilities
1,452
894
Other liabilities and accrued expenses
-
32
Total Non-Current Liabilities
5,425
5,261
Total Liabilities
$ 28,221
$ 21,507
Shareholders' Equity
Share capital
$ 706
$ 669
Additional paid-in capital
148,610
143,473
Accumulated other comprehensive loss
(2,908)
(2,620)
Accumulated deficit
(73,625)
(71,368)
Total Shareholders' Equity
72,783
70,154
Total Liabilities and Shareholders' Equity
$ 101,004
$ 91,661
https://www.prnewswire.com/news-releases/radcom-reports-fourth-quarter-and-full-year-2022-results-301741825.html
SOURCE RADCOM Ltd.
