RDCM - Earnings call transcript Q1 2022

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the RADCOM Limited Results Conference Call for the First Quarter of 2022. All participants are at present in a listen-only mode.

Following management’s formal presentation, instructions will be given for the question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded and will be available for replay on the company's website at www.radcom.com, later today.

Eyal CEO; are RADCOM's Hadar call CFO. the Harari, and RADCOM's Rahav, On management presentation prepared that note has Please that a used the will during for call. be reference your

do Investors section RADCOM's not yet, downloaded If www.radcom.com/investor-relations. of the you the you website have may in link so it at through

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Eyal Harari

and morning, earnings Good for you us first thank operator. for call. Thanks, joining our everyone, quarter XXXX

win million seen we of RADCOM the customer that since announced to contracts today, of This selected brings monitor exciting continues momentum this network. have may in XXXX. the new the You early new second cloud total to XG positive start a new is year. news This the us the $XX XG DISH

quarter grew Our This is while pleased time I year-over-year, million. our XXth and $XX.X first of with for growth, am same we another reaching growth revenue XX% quarter quarter, significantly line. the solid very revenue first quarter at results. bottom was improved the our Revenue our of straight year-over-year

recent XG Vegas. seamlessly launch XXXX. earnings the at population the by DISH they integrates by DISH few that deploy nationwide This that stand-alone started DISH roll selected first years public first the cloud. in DISH month We of by As Las the DISH announced best-in-class assurance of ACE, into the smart XG partner serving America's about XX% the this network proud begin they to a plan America's wireless first that cloud. XG feel a mentioned, XG rollout they monitor ago on solution first RADCOM launching their capable to we RADCOM wanted U.S. markets expect to RADCOM June in network. announced network. call beginning as fully monitor out in they be to assurance smart June. to deployed selected XX because of network,

provider the monitor position order in we ACE cloud XG to the Amazon RADCOM Therefore, nationwide acknowledgment a monitor from are to the mobile our innovative ensuring Last strengthen technology ACE, new announced AWS, network ACE an multiyear Europe. RADCOM of and and a We built across an expect cloud will DISH its play helps further network XG smoothly end-to-end performance its which operators that Web gain technology assurance on Services, important operator top-quality role visibility now will automated advanced rollout. month, proactively service win in assurance XG. make for transition the operators are enable These services delivered run wins covers market. XG the decisions and this in data-driven an this network European provide Our based a intelligence as assurance customers. we to efficient its platform and end-to-end they our believe the interest XG operator achieved for launched with quality XG contract were RADCOM and on facilitating real-time, the leadership network. performance, of improve and XG. This capabilities assurance the provides cloud to and our and

off. time, sales pipeline potential growth At With these the focused existing customers. in remain is previous two capturing on see our wins, customers current same we new with and and both new strategy we our XG the paying

XG market that and the see creating additional it catalyst more market in sales believe the for ramps long and be also bring increased as engagements the good and growth We for momentum term multiyear mid share. can a will up, market contracts

current foundation growth future the our us strategy provides with revenue So that for beyond believe we engagement. our XG sales

to business. investment development leadership this and continued enabler technological this is within evolving future our to With key extend research a We in space vital. be for rapidly, believe our the market our

enhance invest AI-driven in strategically the are market our ACE and R&D XG these have wins. the to increase our to our continue with expand as cloud. aligned solution, to with insights solution will and All needs We our already recent seamlessly capabilities our noted integrated capabilities, fruits RADCOM bearing

pipeline healthy and Our while expand, a mix having base current continue installed opportunities from to customers. be our and of new good

that returns. we and line pipeline number level provider our the to looks size. is that We We continue for of best-in-class a addressable strong, as The has positive bottom assurance a potential the and momentum our positive demand our will knowledge that XG and networks also market pipeline's expertise see of our cloud the cloud-native position have engagement market total engagements, with solid believe increase opportunities drive to share. of and

provides call Score XXXX, with as renewed contract Turning contract, partnership we that year and with good entered we RADCOM, our AT&T earnings business multiyear mentioned With Net into are this partnership. the their visibility to backlog we we continue significant the with of assurance have we installed recent up as Promoter our leading to base. in AT&T AT&T that year-over-year. expect its announced that this our a remain Last month, strong sixth operator. telecom

latest newly a in published the high-performing has [ph] which report quality cutting-edge evolution Tokyo network service cosmopolitan cloud. with as network experience performance This as achieved network delivering believe assigned Japan our very low a that churn vital operators to experience. they experiencing that for their at Rakuten demonstrates addition, continue the compared all solutions monitoring and with worldwide. Mobile other our improvements network. supporting they good a the network Rakuten quality in their build they we are first over deployed their their they levels, experience. world's score virtualized competes are assurance the for infrastructure high importance cutting-edge customer in which stated In underlying continue lighting Munich the ensuring historically of the We leading speed and report we Therefore, journey releases customer Rakuten Mobile cities software using support to customer as solution monitoring world. evolving the in has technology to

Our and and visibility network them operations. their network cloud-native solution vital automate to in and help subscriber provides a it's end-to-end service ensure environment performance

progress Rakuten. We the in with are our partnership with delighted

XG leading telecom of develop our products mature our to stand-alone provide Barcelona, the the The years evolves. expertise. to state-of-the-art using releases cloud-based valuable continually latest continue event event. processes look after in team provides their limitations. will was solution to and deployment industry when and due couple continue person Mobile the helping sales held to network February, stand-alone Congress work and our software more XG our We COVID implement World attended a We experience believe Spain, this operators assurance in In

and deliver be networks, XG automated make of areas solutions autonomous network Congress, the summarize transition real-time As the in of vital America we event, is see network U.S., Congress will post for are and being that belief that event stand-alone, positive to big as and at through Operators the cloud After evidence to the World Mobile that years their quality industry Strong believe operations. intelligent, returning, of lead inquiries services. believe about starting a the sales back cloud-based will we happening industry our an general for these where Congress return. we which this public positive, are themes events meetings XG Symphony. analysis to North sign, in-person additional which online to to need our are interest conference see that Rakuten starting is resume. the blog All to very recent providers RADCOM We in XG globally, XG dynamic the were in saw Similar to to covered in is we more a we in-person event. leading X opportunities. assurance an in-person

XG to early remains the while being our only we of assurance our believe a see solutions to that requires isolate very network these with We strategy. We sales momentum our the issues, generate architectures XG cornerstone and still opportunity performance to result, provide able market market stages. building extensive current automation. of are complexity at the new network and and and will aligned The As direction with optimize be engagements. network more advance strong, automated positive

also at We start our Revenues bottom of the pleased performance To summarize, improved with from we line. this and year fiscal incredibly are year-over-year, up our customers. hear I'm XXXX. our

telecom rolling networks XG by recognition industry-wide receive looking to solution operators to transformation. continue out we assurance their and XG cloud-based advanced for help addition, forward-looking In

excited our selected to ensure first advanced great assurance new We DISH XG cloud-native another mobile forward by look their new assurance in for network were multiyear noteworthy contracts. customer added to Europe as contract. America's experiences We We help several subscribers. providing for assurance to and vendor monitor smart to are win software a further XG more

will believe as we expertise Our cloud assurance from momentum. gains multiple continue market customer which a XG key expand become differentiator and to deployments, the

above optimistic results that, a range Hadar financial from data-driven we year of success pursuing of to of offering on We we we the to initial who by and in million visibility XXXX with our helping more innovative time about we cloud growth CFO, turn automated are guidance fiscal Rahav, more February. in operators a call our are that million. detail. decisions our our intelligent am are revenue wins and make Therefore, and in business our pipeline in guidance With networks. strategy opportunities, I increasing expect to $XX to future to the real greater a to world revenue are play discuss million provided like ability and will transitioning our deliver XG confident our software I the over healthy million of the to recent to $XX transformation. provides range Based native based, would $XX our the $XX

Hadar Rahav

Thank you, morning, Eyal, and good everyone.

We the please mainly turn quarter financial refer X million in the first which revenue, of increasing with help for understand non-GAAP will first ended you numbers, our share-based $XX.X Slide exclude compensation. in $X.X of million to results, XXXX to quarter from I Now the To highlights. XXXX.

growth. representing pleased are an year-over-year consecutive with trend XXth quarter of growth our We consistent

fluctuate that our Our first quarter the basis XX%. margin non-GAAP can Please was depending on mix. gross margin on note XXXX the revenue gross of a in

quarter the R&D a $XX,XXX during in of million, of of quarter expenses a a first slight of quarter Israel for first grant last received on year. Our quarter to of the basis compared Innovation We first from increase $XXX,XXX XXXX. the the a grant were gross $XXX,XXX Authority of non-GAAP the compared $X.X XXXX to

first first the were our non-GAAP result, on expenses a compared XXXX $X.X As net for million a R&D to quarter million XXXX. quarter $X.X in of of basis the

and from level first XXXX similar first net was or The million compared be basis share On income for of We a quarter basis, as was income on of of XXXX. to was second were diluted hedge for $X.X G&A from a fluctuation million. share exchange. or was the net were of on for you loss million $X,XXX,XXX $X.XX of $X.XX $XXX,XXX or of increasing quarter $X.X net a first quarter due of quarter. Authority derived for the At XXXX. marketing income $X.XX non-GAAP Operating net in per a compared diluted of the the on with first the quarter $X,XXX,XXX no for XXXX. compared quarter quarter income loss quarter to interest GAAP quarter the of expect first of a $XXX,XXX the of Sales $X.XX million loss of quarter first and share [ph] was per see Innovation can significant basis, loss of XXXX, $XXX,XXX first a a the Israel expenses [ph] end to of the loss change of first of on for non-GAAP million a XXX XXXX. the diluted a of the XXXX expenses as first non-GAAP a quarter on an Net XXXX of net per X, [ph] for a loss of per net first $X.X fund our Slide the grant a million XXXX the our financial first to non-GAAP diluted for positive XXXX quarter XXXX. compared share in to net basis foreign operating to the loss loss or first net of basis $XXX,XXX the quarter

Turning to the balance sheet.

prepared the March operator million. As short-term cash, of $XX.X XX, That for I you the XXXX, your call as were questions. turn Slide bank our will and cash can see to remarks. now equivalents deposits our on XX, ends back

Operator

time, you. go Blair. William from of [Operator Thank session. Ladies at is question Instructions] question-and-answer and this begin Bhatia the The first we'll gentlemen, Arjun Please ahead.

Arjun Bhatia

taking win. I'll Perfect. the DISH Thank just questions. start there. you congrats much And Maybe for very on my

the there? With the for model, have layer And model timing you Is can the then maybe give a do just may as how how Is can the us into subscription over think for future sense something of you expansion the that be that deal time? ramped that expansion DISH room sometime, year opportunity QX? you proceeds? about there this QX, with rollout further fully

Eyal Harari

Hi, good morning.

win – very over are Wireless. So from the yeah, excited the the costs. of quarters DISH business is our DISH, subscription as win new The to we and like until two accounts be that are other expecting one multiyear with is a with about model concept recent we multiple our This agreement starts. or year is revenue typically announcement takes - revenue

a following get DISH, years, into full aware, in start the in you're as in revenue network, to expect evolve. the come the we most we we as with areas new revenue grow. second and we cover probably the to XG expand them this the multiyear them capacity we with of of So they now year, and will while are but are definitely part and will as term, additional we further into and excited agreement expand looking building

nationwide go of and in of As looking Las millions subscribers. are capture week they they to this just Vegas, announced dozens

time it's for a definitely us. exciting So very

Arjun Bhatia

network for last and an part the changed conversations they to it that terms predictive business? Can pipeline operators value is That's how so? overall pipeline ask big you're analytics little major want proposition customers? networks. Obviously, and kind occurs of into Perfect. before with I they seeing. and playing predict or that's driving visibility touch but conversation Is their better to then these can very What if and the that with product dynamic outage where of a maybe role just a DISH, not and you're AI is having that of new the over bit, want get just the And - on helpful. And year you the a that side. in

Eyal Harari

In efficient, we to see and it, building Actually, and and technologies assure great many would our the we very in the, their I more we the the X capabilities years, in a the more best network. they to is have advanced call this we AI is solution RADCOM exactly network, from year, automation enhance busy insight more secret infrastructure monitor becoming to order our the more Last how to which can you is really can and last XG from assurance these the were do data collected basic addressed, of question. ACE monitor can and more generate interest they are predictive the announced networks. become mentioned, and that capabilities, occasions, as more automated by only see actually use but This customers And get solution. how not to to how sauce. their analytics

lot this being is something part And of is is that It's our discussed. go. part continue I investments. we captured more are to of as a invest to And and of that technology this definitely, going for more this area see the demand interest. as R&D something we So

Arjun Bhatia

one last for me. Great. And

You Barcelona. mentioned World Mobile in Congress

in or returning, that having half of - salespeople and I just Or your as events progresses the as obviously you year that's get Just reopening to as travel into expenses but Again, the guidance, ramp back to that here? the up about traction how should assume and baked operating pipeline love would meetings? the the you're expenses the back? you're how with and expect is we second going that comes thinking hear year travel in-person and in-person the change with increase think start do to we seeing in out about

Eyal Harari

Yeah.

industry see the of on excited very starting first is to to to site. all, get are back we that So

Some our engagements. quarter, the and we do land to going meet customers. targeting business us our and last a as of is customers. these on-site we get into the new to this new for and due to as previous eager quarter effect on-site see is we all travel even slight enhance already to RADCOM We believe on sales This expand of are close the in definitely to our marketing would and to help there mainly But increase are that I resumed some to more ability events. in accounts. our expect confidence more and

happy are continue hopefully, we this trend. will know, very this you for overall, And So COVID 'XX. never new with hopefully, during

So But slight [ph] dramatic. of are going as the yes, increase, some expenses be not the cost. higher as something to travel

Arjun Bhatia

all again. that in-person Perfect. Thanks Congrats, Yeah, taking we're return everybody for I the seeing event, in questions. on person. think to for

Eyal Harari

you. Thank

Operator

are at concludes this 'XX results There no call. further quarter your RADCOM This for the participation. Ltd. first time. Thank conference questions you

You disconnect. may and ahead go

Eyal Harari	Chief Executive Officer
Hadar Rahav	Chief Financial Officer
Arjun Bhatia	William Blair

RADCOM (RDCM) 12 May 222022 Q1 Earnings call transcript