• Revenue: Record quarterly revenue of $15.8 million, a 20% increase year-over-year.

• Non-GAAP Net Income: $3.7 million, with a net margin of 24%, up 6% from Q3 2023.

• GAAP Net Income: $2.3 million, compared to a net loss of $0.3 million in Q3 2023.

• Non-GAAP Gross Margin: 75% for the third quarter.

• R&D Expenses: $4.2 million, with expectations for a gradual increase in the fourth quarter.

• Sales and Marketing Expenses: $4 million, a 19% increase from Q3 2023.

• G&A Expenses: $1.3 million, an increase of $298,000 from Q3 2023.

• Operating Profit (Non-GAAP): $2.6 million, a 92% increase from Q3 2023.

• Cash Position: $90.2 million in cash, cash equivalents, and short-term bank deposits.

• Headcount: 313 employees at the end of Q3 2024.

• Warning! GuruFocus has detected 2 Warning Sign with PHCUF.

Release Date: November 13, 2024

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

Positive Points

• Radcom Ltd (NASDAQ:RDCM) achieved record quarterly revenues of EUR15.8 million, demonstrating strong financial performance.

• The company secured a seven-figure multi-year contract with a North American operator, showcasing successful business development.

• Radcom Ltd (NASDAQ:RDCM) has integrated advanced analytics capabilities from the continual acquisition, enhancing its core technology.

• The company is well-positioned in the 5G market, with strong demand for its cloud-based automated assurance solutions.

• Radcom Ltd (NASDAQ:RDCM) raised its 2024 revenue guidance to EUR59 to 62 million, indicating confidence in continued growth.

Negative Points

• Sales processes are time-consuming and unpredictable, which can impact revenue recognition timelines.

• The transition to 5G standalone presents challenges for operators, particularly those lacking cloud migration skills.

• There is a gradual increase in sales and marketing expenses, which could impact short-term profitability.

• The company's gross margin can vary slightly from quarter to quarter, depending on the revenue mix.

• Radcom Ltd (NASDAQ:RDCM) faces competition in the telecom market, which could affect its ability to secure new contracts.

Q & A Highlights

Q: Can you provide more details about the new seven-figure deal with the North American operator and the role of the continual acquisition in this win? A: The continual acquisition complements our platform by enhancing our ability to provide advanced insights from network data. This synergy between our platforms contributed significantly to securing new opportunities and logos. The customer is using both platforms, and the contract is multi-year, with revenue recognition starting in 2025. (Hilik Itman, Chief Operating Officer)