RADCOM Delivers 20% YoY Revenue Growth and EPS up by 120%

Reaffirming Company’s Commitment to Profitable Growth and Long-Term Shareholder Value

• Peak cash level of $86.1 million
• Highest quarterly revenues of $14.8 million
• Record half-year revenue and profitability

TEL AVIV, Israel – RADCOM Ltd. (Nasdaq: RDCM), an industry leader in automated assurance and intelligent analytics for telecom operators transitioning to 5G, announced today its financial results for the second quarter ended June 30, 2024.

Hilik Itman, RADCOM’s interim Chief Executive Officer, commented, “This quarter, we continued to execute our strategy to drive profitable growth and long-term shareholder value. We achieved record quarterly revenues of $14.8 million, up 20% from the second quarter of 2023.

“Our net income increased by approximately 120%, driven by strong revenue growth. We maintained our positive cash flow generation, achieving a new milestone with our cash and cash equivalents reaching a record high of $86.1 million. We are on track to meet our 2024 financial guidance and deliver revenue and profitability growth.

“Since the start of the year, we have secured over $50 million in new 5G contracts, including several seven-digit contracts across various geographic markets, while maintaining significant recurring revenues. This shows the demand for our leading solutions and boosts our revenues as telecom operators transition to 5G.”

Key highlights Q2 2024:

• Total revenues for the second quarter were $14.8 million, compared to $12.4 million in the second quarter of 2023, representing a 20% year-over-year growth, a new company record.
• GAAP net income for the second quarter was $1.7 million, or $0.11 diluted EPS, compared to $0.8 million, or $0.05 diluted EPS, for the second quarter of 2023, representing an approximately 120% year-over-year increase compared to the second quarter of 2023.
• Non-GAAP net income for the period was $3.1 million, or $0.20 diluted EPS, compared to $2.1 million, or $0.13 diluted EPS, for the second quarter of 2023.
• As of June 30, 2024, the Company had cash, cash equivalents, and short-term bank deposits of $86.1 million and no debt, ending the quarter with its highest-ever cash levels.

Key highlights H1 2024

• Total revenues for the first six months were $28.9 million, compared to $24.4 million in the first six months of 2023, representing a 19% year-over-year growth.
• GAAP net income for the first six months was $2.5 million, or $0.16 diluted EPS, compared to $1.4 million, or $0.09 diluted EPS for the first six months of 2023.
• Non-GAAP net income for the first six months was $6.0 million, or $0.38 diluted EPS, compared to $3.9 million, or $0.25 diluted EPS, for the first six months of 2023.

Mr. Itman concluded, “The efficient growth we achieved in the first six months of 2024 provides a strong foundation for our continued success in the remaining six months of 2024, and we believe the best is yet to come. We are witnessing increasing demand for our solutions across multiple regions, particularly in North America. The heightened demand is reflected in our expanding sales pipeline, which has the potential to drive further growth and enhance shareholder returns.

“This gives us the confidence to raise our 2024 revenue guidance to $58 to $61 million (from $57 to $60 million).”