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AudioCodes Clocks 13% Revenue Growth In Q1 Aided By Microsoft, Zoom

Benzinga · 05/02/2022 06:23
  • AudioCodes Ltd (NASDAQ:AUDCreported first-quarter FY22 revenue growth of 12.8% year-on-year to $66.36 million, beating the consensus of $66.29 million.
  • Product revenue rose 4.9% Y/Y to $38.8 million, while Services revenue grew 26.2% Y/Y to $27.5 million, driven by professional services and AudioCodes Live managed services. 
  • Margins: The non-GAAP gross margin contracted 40 basis points Q/Q to 67.2% due to higher components costs. The non-GAAP operating margin contracted 240 basis points Q/Q to 18.0%.
  • The non-GAAP EPS of $0.33 missed the consensus of $0.36.
  • AudioCodes generated $0.94 million in operating cash flow and held $144.1 million in cash and equivalents.
  • CEO Shabtai Adlersberg said, "Strong sales in the Unified Communications and Collaboration (UCC) business were the key driver for our continued growth in the first quarter of 2022."
  • The company noted revenue growth acceleration was reflected mainly in enterprise sales in the Microsoft Corp (NASDAQ:MSFT) Microsoft Teams Voice and the Zoom Video Communications, Inc (NASDAQ:ZM) Zoom Phone environments which grew each above 50% year-over-year."
  • Price Action: AUDC shares traded lower by 1.91% at $23.08 in the premarket on Monday's last check.