Thank you, Niran.
to We quarter third ever. report best record are pleased results for quarter financial the XXXX, our very
me to performance on our first key and relating business growth long-term. Let focus topics two
First growth. is revenue
the Second model is and profitability. our long-term derived financial
and get We major in quarter. the the to will then highlights developments
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operating margin gross Now XX.X%. level, to our margin and have margin long-term demonstrated gross margin XX.X%, operating financial at model, record at
quarter the XX.X%. level. operating was This a where margin leads to at XX.X% EBITDA about of row capped Now margin XX.X%. this is is the second above of and OpEx in margin XX% operating an
with So the settling let's that's sales the sales Software-as-a-Service XX% hardware but about long-term years of for see lower two-three margin can range. and model, the we range a XX% now following of talk in products, to of higher the core, gross long-term
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areas; one is Teams growth the two the focused the and strong definitely activity Microsoft around second Voice.AI and keep on one it business. very future, As is for we being new the
work pandemic. growth and habits a easily was the enterprise XXXX the and from at quarter improved comprises much IP of the work beyond the question of revenues. all-in-all So, remote quickly year highly as our XX% to procurements competitive. overall enterprise in supplies and in rather for in we and business our the roughly from to work Getting of environment, flat that site this growing The model continuity the in XX% hybrid world. in roots space line the growth, and above area, from no which the and organization home There's third the the strong communications in in become tools business of home of In which be as work collaboration, operations, company to point office sales pretty such high only changing for the organization which phone key today's quarter phones. success remain plans and work service have and COVID-XX getting quarter, can trends, tracked home new maintain sore well provider's back XX% actual the quality collaboration and to have third result stay normal stalled the suffer business back new this business continue about the in practically and become every seen business to agenda in efficient
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performance, year-over-year. same to mention revenues, the period growth nine our see growth the a over to to financial for This we was back meaning year-to-date months the of a area already. key more full first discussed the also companies in services XXXX year-ago here we I services as the more as gradually compared growth see key of service revenues favor XX% we investment quarter getting is forward the On were revenue buying going more XX%, that recognize products. user that XX% and managed than AudioCodes actually over and driver growth end we want growing for year-ago. So XX% evolution managed that professional
start grew simply as services I mention the gross in already. this year-over-year, Providing want the has of gross while sales. a XX% and expansion We both flat with and majority we and of sales way margin this hardware quarter year-over-year discussed grew, gross services coupled other year-over-year more on increased a grew color saw in basis. of software the quarter to of software to year-by-year be expenses. higher level to and related operating a this that income on increase services relatively to higher margin sales meaningful products declining Net XX% Let's result and year-over-year. revenue as attributed XX% compared product margin, that sales software should
XX% net in X% an to million, the more with So, $XX.X million great as income of grew $XX.X cash year-over-year, mentioned million we $X.X a quarter. compared operations already Cash overall year-ago Headcount, increase more This was flow clearly headcount achievement. kept to producing than our with quarter definitely of our outsource the million from line previous and delivering $XX.XX in X.X%, the represents in Obviously growth we than for confidence full-time our growth in year-over-year employees quarter adding for its expansion year-ago our year. the year-over-year. headcount plans over adding XX in business. positions continuous demonstrates overall grew in
$XX.X of over the an to Finally, year-ago, quarter continue versus third to and revenues million $XX increase amounted XX.X% XXXX. grow million
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at second desk phones total this the XX the the quarter a quarter compared nine believe before, performance to we to mentioned prem Touching the we've on gateways, to of quarters the two will as which trend in Gateway habits sales statum quarter, attribute new we first third we is persist organization business, become months, normal, in seen an experience which least more the XXXX. of a the in in of of So increase substantial will row, sales is for devices, this in third the decline next to the hybrid. continue
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what about on flat On year. were an the pretty we year-over-year other much end, revenues annual service overall this level expect for
according Microsoft XX%, this of on they've a to mention survey, market. I and tool would Microsoft Teams. in number and adoption provide clear growing Google mentioned on as Teams. three the To at where and companies were on Teams more CIOs a Teams that that leader standardized they're report that past dramatically Cisco Morgan was the we analyst years enterprise to on while market you issued and the WebEx company This operations. which more the months to that our more. trend and According call on We XXXX, XX% CIOs requested collaboration more Now among that ago, that Microsoft CIO strong Slack about the our the basically is very XX%, forward. report, XX%, data by color X%, standardize months. reports Microsoft dramatically to few those research, grows can he at Microsoft information growing at earlier few definitely two will Microsoft seeing in so of has mid-market followed going that be research month, on another solution increasing the let's data on point Stanley, a the the two and of Microsoft ago WebEx in Cisco was at use Zoom leading follows, more financial X% note issued bring recognition collaboration Relying Chat X.X%. based year, XX% grew have enterprise analyst standardizing CIOs recent only a see XX% division Teams Slack that, a X%, some number say year, just Teams data, organization. from and is collaboration this XX%, that Teams, Teams to In cited the where of we the an give in To research use done of so fact by you
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than To our growing data So, issue analyst all resources that is is another from is an the also sighting Microsoft this are give Microsoft than that of investors companies broad others another considering and sentence fact is XX,XXX recognition in employees of the Teams all with using quarter see in. you to we adoption leading communication tools ecosystem. cloud that again collaboration that existential to disruptor more a on the where them Teams Microsoft you of put report the be fact is we XXXX the counting is there and all, point this that the more
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that year very be cloud and assume, definitely for us. favorable So solution we'll the we use in Also as to Teams in getting that, more, investments will trend a a I about seats more coming see months. talk
all very the sense for just the you in split to all, a So, the a activity revenues nice give kind of quarter, in in of quarter.
we this Business. above Teams saw for substantially So, getting Skype quarter,
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close just new monitor that the creation opportunities yet. We and also been opportunities, have not of created
there're opportunities can that seen the for meaning that the new and definitely opportunities with tell less market So, in segment. about business, decline XX% enough, for mind, less in Business. or year-over-year often have Interestingly Business Skype new for that Skype of side the you we we
However, Teams, tell you once of more we I that than seen XXX%. increase year-by-year an to basis a on have we can go
rising out. All application we're I cetera, activity XXXX across fairly strong business of year-over-year that's in trend you see in Direct The very is above Route that. as September, Teams et tell is on doing months a the can that capturing in good increase the with most market Teams see. the we we activity so all, great that Microsoft that So already and October all visible previous
are success. more great grew basis, Here a a report XXX%. on we as we enjoying we Again, can than year-over-year comparing
we of announced Another management more evolution us, the is services. AudioCodes tenant managed service AudioCodes Live again started Direct functionalities. that saying and some efforts voice-enabled to Route a definitely see against of invest in are fact as market About activity reports Live more area. growth six for in managed and core past. and or all, to few the the service in ago, purchasing for of full Teams. we and months lot we see with includes we provides the there management, to consuming Again, Microsoft life equipment Teams coming basically lots have more user area that solution Teams. cloud connectivity, area All services, managed of a The services companies of I'm
activity. plan, do we actually just plan. to all a a invest resources in managed So, I five-year services all, we that tell just business. a many recurring make our keep add seen in lot can We're in that growing long-term we going you the sure positions services already accounts. We've XXXX growing revenues we from the side on see several managed to of of second-half monthly have this
part One is years Skype We're from to products Business few as name bank bank of to to had Definitely deals. increased that urgency systems legacy PBX notable the for to about some online COVID-XX ago talking Asian Microsoft Business of supplied their an for and that in few Asia We migrate that. Teams. Just Skype Pacific. journey.
point thanks our are with and experience service, they both a Business the or Teams. as where Now, migration for and needs to Skype at
of worth generating the dollars our large clearly to our alone in are selected Microsoft opportunity to demonstrates keep do business vendor professional installed We thousands hundreds and that. several of is base. services This ability from
this We centers. is deployed solution the to customer XX,XXX company this in our with their American than Together financial received SBC data Route with and employees, which professional as PSTN cloud to more the private $X.X with requirements Mediant million. was Teams, Another system. connect to the they existing address CE, PO cloud-native Cisco-based services our was which quarter services, close moving is deal is a to a to need business Direct North
healthcare handling operating XXX huge working many total across The project of contact U.S. is millions is running is about and quarter, in a agents dollars healthcare project benefits multi-year center $XXX,XXX. because we from and worth of company a more They're countries is of COVID-XX globally. due that specifically, pharmacy home. aggression that services to one this the generated seeing third the life value Another
call, just to opportunities midrange see of Looking WebRTC contact with to will that and said I the our that center of $XXX large-enterprise we what a further the intelligent of more $XXX believe we for in to we this mention business about the evolving, $XXX million range our million Niran presentation. updating this million in setting range that XX% great solution, of my guidance conversational growth revenue provide solutions. $XXX contact us million, to XX:XX:XX] ahead, earlier that terms million, narrowing basically and keeps of Again, are a transition satisfaction. should roughly more project a generating for are And $XXX customer AI is We revenue, year. and this example center this based on customer concludes
We to Q&A substantially the side, $X.XX earning updating was With Operator? $X.XX. Previous we which for, and my upgrade I to have $X.XX the And introduction On guidance. it itself completed elevated, the the that, that's was call, to are turn $X.XX. session. I by to guidance the will to now it. call it was
