Overview
AudioCodes Q3 revenue grows 2.2% yr/yr, beating analyst expectations
Company repurchased 1,267,436 shares at a cost of $12.7 mln
Pretax profit for Q3 missed analyst estimates
Outlook
AudioCodes targets full-year ARR of $78-$82 mln
Company sees 40%-50% growth in CAI business for 2025
AudioCodes to invest in high-growth areas for sustained growth
Result Drivers
SERVICES REVENUE - Services accounted for 50.3% of total revenues, contributing significantly to overall revenue growth
CONVERSATIONAL AI GROWTH - Co's conversational AI business grew 50%, on track for 40%-50% growth for 2025
LIVE PLATFORM AGREEMENT - Co secured a landmark agreement with a tier-1 system integrator for managed connectivity services
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $61.55 mln | $60.67 mln (2 Analysts) |
Q3 EPS | $0.10 | ||
Q3 Net Income | $2.73 mln | ||
Q3 Pretax Profit | Miss | $4.13 mln | $4.78 mln (2 Analysts) |
Q3 Operating Expenses | $36.22 mln | ||
Q3 Operating Income | $4.06 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for AudioCodes Ltd is $10.75, about 17.9% above its November 3 closing price of $8.83
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 21 three months ago
Press Release: ID:nPn21lntDa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)