RADCOM Reports Record-Breaking Year with Highest-Ever Revenues and Accelerated Profit Growth

Poised to Achieve its Sixth Consecutive Year of Revenue Growth Key 2024 Highlights Record revenue of $61M, with over 18.2% year over year increase and a 5th consecutive year of revenue growth Accelerated earnings of $0.43 per diluted share (GAAP) and $0.83 per diluted share (Non-GAAP) $12.5M positive cash flow, closing the year with a record-high $94.7M in cash and short-term bank deposits Secured a new customer: Norlys (Telia Denmark) Strong visibility into 2025, targeting double-digit revenue growth of 12% to 15% year over year , /PRNewswire/ -- RADCOM Ltd. (Nasdaq: RDCM) announced today strong financial results and accelerated profitability for the fourth quarter and full year ended December 31, 2024. Management Comments: "2024 was a record-breaking year for RADCOM, driven by exceptional team execution and remarkable achievements. We exceeded the midpoint of our full-year revenue guidance, marking our fifth consecutive year of growth while significantly enhancing profitability. Earnings per share surged by over 75% on a GAAP basis, and we achieved the highest cash and short-term deposits balances in the company's history—$94.7 million—all while remaining completely debt-free," said Benny Eppstein, Chief Executive Officer of RADCOM. Our record-breaking performance highlights the power of our cloud and Gen AI-based assurance solution that telecom operators need to improve efficiency and deliver exceptional customer experiences. We remain laser-focused on innovation, AI, and automation, continuously investing in research and development (R&D) to reinforce our leadership in 5G assurance, expand our solution portfolio, and support operators as they transition to next-generation networks. As announced a month ago, following a thorough selection process, we have secured a multi-year contract with Norlys, the owner of Telia Denmark. This win underscores RADCOM's leadership in AI-driven assurance solutions and highlights the success of our strategic investment in European sales and marketing. We have further solidified our reputation as a trusted industry leader by replacing the incumbent assurance vendor. Looking ahead to 2025, I am excited to lead RADCOM and believe that the best is yet to come. We are establishing strategic partnerships with service management system vendors and other industry leaders in advanced network technologies to enhance our solutions and expand market opportunities. With strong visibility, RADCOM is well positioned to achieve its sixth consecutive year of revenue growth." Mr. Eppstein concluded, "We anticipate full-year 2025 revenue growth of 12% to 15%, with a midpoint of $69.2 million—representing a 13.5% increase compared to 2024." Full Year 2024 Financial Highlights: Total revenues for the full year were $61 million, a new company record, compared to $51.6 million for 2023. GAAP net income for the full year was $7 million, or $0.43 per diluted share, compared to a GAAP net income of $3.7 million, or $0.24 per diluted share, for 2023. Non-GAAP net income for the full year amounted to $13.5 million, or $0.83 per diluted share, compared to a non-GAAP net income of $10.2 million, or $0.67 per diluted share for the full year 2023. Fourth Quarter 2024 Financial Highlights: Total revenues for the fourth quarter were $16.3 million, compared to $14.0 million in the fourth quarter of 2023, 16.1% year-over-year growth. GAAP net income for the fourth quarter was $2.2 million, or $0.14 per diluted share, compared to a GAAP net income of $2.6 million, or $0.17 per diluted share, for the fourth quarter of 2023. The decrease was mainly attributed to lower interest income due to decreased interest rates. Non-GAAP net income for the period was $3.8 million, or $0.23 per diluted share, compared to a non-GAAP net income of $3.8 million, or $0.25 per diluted share, for the fourth quarter of 2023. As of December 31, 2024, the company had cash and cash equivalents, short-term bank deposits of $94.7 million, and no debt, ending the year with its highest cash levels. Earnings Conference Call As mentioned in our last press release, our conference call originally scheduled for February 12, 2025, has been rescheduled to Thursday, February 20, at 8:00 AM Eastern Time (3:00 PM Israel Standard Time). RADCOM management will discuss the results and address participants' questions. A live webcast of the presentation will be available at https://Veidan.activetrail.biz/radcomq4-2024. The webcast will be archived for 90 days following the live presentation. To join the interactive 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: +972-3-9180644 A conference call replay will be available the same day on the Company's investor relations website, www.radcom.com/investor-relations. For all investor inquiries, please contact: Investor Relations:Miri SegalMS-IR LLC[email protected] Company Contact: Hadar RahavCFO+972-77-7745062[email protected] About RADCOMRADCOM (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, financial (income) expenses, acquisition-related expenses, and amortization of intangible assets related to acquisitions, 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 2025 revenue guidance and growth, its cloud and Gen AI-based solutions and their suitability for network operators needs, its investment in R&D generally and in order to enhance its leadership in 5G assurance, its leadership in AI-driven assurance solutions, its belief that 'the best is yet to come' and its expectation that its strategic partnerships with service management systems vendors and other industry leaders will enhance its solutions and expand market 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, loss of market share and pressure on prices resulting from competition and the effects of the war in Israel. 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 Unaudited (thousands of U.S. dollars, except share and per share data) Three months ended Twelve months ended December 31, December 31, 2024 2023 2024 2023 Revenues $ 16,264 $ 14,010 $ 61,009 $ 51,600 Cost of revenues 4,137 3,435 15,746 13,773 Gross profit 12,127 10,575 45,263 37,827 Research and development, gross 4,749 4,327 18,659 19,575 Less - royalty-bearing participation 113 190 684 736 Research and development, net 4,636 4,137 17,975 18,839 Sales and marketing 4,632 3,720 17,794 14,592 General and administrative 1,549 1,297 6,407 5,058 Total operating expenses 10,817 9,154 42,176 38,489 Operating income (loss) 1,310 1,421 3,087 (662) Financial income, net 1,080 1,248 4,115 4,557 Income before taxes on income 2,390 2,669 7,202 3,895 Taxes on income 142 77 234 182 Net income $ 2,248 $ 2,592 $ 6,968 $ 3,713 Basic net income per ordinary share $ 0.14 $ 0.17 $ 0.44 $ 0.25 Diluted net income per ordinary share $ 0.14 $ 0.17 $ 0.43 $ 0.24 15,878,186 15,291,917 15,666,457 15,098,642 Weighted average number of ordinary shares used in computing basic net income per ordinary share Weighted average number of 16,612,554 15,446,177 16,155,150 15,297,947 ordinary shares used in computing diluted net income per ordinary share RADCOM LTD. Reconciliation of GAAP to Non-GAAP Financial Information Unaudited (thousands of U.S. dollars, except share and per share data) Three months ended Twelve months ended December 31, December 31, 2024 2023 2024 2023 GAAP gross profit $ 12,127 $ 10,575 $ 45,263 $ 37,827 Stock-based compensation 91 71 381 441 Amortization of intangible assets 57 57 225 151 Non-GAAP gross profit $ 12,275 $ 10,703 $ 45,869 $ 38,419 $ 4,636 $ 4,137 $ 17,975 $ 18,839 GAAP research and development, net Stock-based compensation 497 424 2,047 2,690 Non-GAAP research and development, net $ 4,139 $ 3,713 $ 15,928 $ 16,149 $ 4,632 $ 3,720 $ 17,794 $ 14,592 GAAP sales and marketing Stock-based compensation 506 370 2,023 1,820 Amortization of intangible assets 29 29 116 77 Non-GAAP sales and marketing $ 4,097 $ 3,321 $ 15,655 $ 12,695 $ 1,549 $ 1,297 $ 6,407 $ 5,058 GAAP general and administrative Stock-based compensation 380 319 1,645 1,168 Acquisition related expenses - - - 56 Non-GAAP general and administrative $ 1,169 $ 978 $ 4,762 $ 3,834 $ 10,817 $ 9,154 $ 42,176 $ 38,489 GAAP total operating expenses Stock-based compensation 1,383 1,113 5,715 5,678 Amortization of intangible assets 29 29 116 77 Acquisition related expenses - - - 56 Non-GAAP total operating expenses $ 9,405 $ 8,012 $ 36,345 $ 32,678 $ 1,310 $ 1,421 $ 3,087 $ (662) GAAP operating income (loss) Stock-based compensation 1,474 1,184 6,096 6,119 Amortization of intangible assets 86 86 341 228 Acquisition related expenses - - - 56 Non-GAAP operating income $ 2,870 $ 2,691 $ 9,524 $ 5,741 RADCOM LTD. Reconciliation of GAAP to Non-GAAP Financial Information Unaudited (thousands of U.S. dollars, except share and per share data) Three months ended December 31, Twelve months ended December 31, 2024 2023 2024 2023 GAAP income before taxes on income $ 2,390 $ 2,669 $ 7,202 $ 3,895 Stock-based compensation 1,474 1,184 6,096 6,119 Amortization of intangible assets 86 86 341 228 Acquisition related expenses - - - 56 Financial (income) expenses (28) (15) 84 60 Non-GAAP income before taxes on income $ 3,922 $ 3,924 $ 13,723 $ 10,358 GAAP net income $ 2,248 $ 2,592 $ 6,968 $ 3,713 Stock-based compensation 1,474 1,184 6,096 6,119 Amortization of intangible assets 86 86 341 228 Acquisition related expenses - - - 56 Financial (income) expenses (28) (15) 84 60 Non-GAAP net income $ 3,780 $ 3,847 $ 13,489 $ 10,176 GAAP net income per diluted share $ 0.14 $ 0.17 $ 0.43 $ 0.24 Stock-based compensation 0.09 0.08 0.38 0.43 Amortization of intangible assets (*) (*) 0.02 (*) Acquisition related expenses (*) (*) (*) (*) Financial (income) expenses (*) (*) (*) (*) Non-GAAP net income per diluted share $ 0.23 $ 0.25 $ 0.83 $ 0.67 Weighted average number of shares used to compute diluted net income per share 16,612,554 15,446,177 16,155,150 15,297,947 (*) Less than $ 0.01 RADCOM Ltd. Consolidated Balance Sheets (thousands of U.S. dollars) (Unaudited) As of As of December 31, 2024 December 31, 2023 Current Assets Cash and cash equivalents $ 19,243 $ 10,892 Short-term bank deposits 75,429 71,273 Trade receivables, net 19,038 13,412 Inventories 1,667 246 Other accounts receivable and prepaid expenses 1,819 1,592 Total Current Assets 117,196 97,415 Non-Current Assets Severance pay fund 2,985 3,142 Other long-term receivables 3,484 1,573 Property and equipment, net 879 798 Operating lease right-of-use assets 3,421 1,651 Goodwill and intangible assets, net 2,609 2,950 Total Non-Current Assets 13,378 10,114 Total Assets $ 130,574 $ 107,529 Liabilities and Shareholders' Equity Current Liabilities Trade payables $ 2,457 $ 2,640 Deferred revenues and advances from customers 6,848 1,469 Employee and payroll accruals 7,175 5,400 Operating lease liabilities 966 1,062 Other liabilities and accrued expenses 10,463 9,540 Total Current Liabilities 27,909 20,111 Non-Current Liabilities Accrued severance pay 3,868 3,728 Operating lease liabilities 2,438 561 Other liabilities and accrued expenses 683 638 Total Non-Current Liabilities 6,989 4,927 Total Liabilities $ 34,898 $ 25,038 Shareholders' Equity Share capital $ 769 $ 736 Additional paid-in capital 160,761 154,697 Accumulated other comprehensive loss (2,910) (3,030) Accumulated deficit (62,944) (69,912) Total Shareholders' Equity 95,676 82,491 Total Liabilities and Shareholders' Equity $ 130,574 $ 107,529 SOURCE RADCOM Ltd. 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RADCOM Reports Record-Breaking Year with Highest-Ever Revenues and Accelerated Profit Growth

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