Earnings call transcript Q4 2022

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Operator

Good morning everybody, and welcome to the AudioCodes' Fourth Quarter and Full Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal the presentation. [Operator Instructions] Please note this conference is being recorded.

I will now turn the conference over to your host, Mr. of President Vice Chuchen, Investor Relations. Roger may you begin. Sir,

Roger Chuchen

Dmitry today Thank Niran President Adlersberg, Corporate Hosting Development. Officer; Baruch, Head Officer call you, the are and Financial and Chief President Finance Shabtai Chief of of Strategy and Jenny. Vice and Netis, Chief Executive Officer;

information or performance, objectives statements Before AudioCodes' made forward-looking relating expectations I'd to related term thereto the business assumptions and remind product call or and Securities this outlook, you or concerning to begin, during events, may future matters economic is Federal performance, introductions, statements as to conditions, US statements plans, we any that future like the provided Law. contain defined forward-looking other under as

uncertainties actual in could and other Forward-looking are statements factors results those stated differ and cause materially such from statements. subject to risks to that various

and to ability AudioCodes covenants company's loan acquired possible the of in agreements, factors of with information. into integrate other and the include, in our need to particular, limited possible and the in uncertainties, products, and of are satisfy assumes new developments, pricing in and markets, results AudioCodes' AudioCodes risks of the These operations, in and and products demand from and timely manage the Exchange the detailed additional business; and for conditions to acquisitions, conditions disruptions and no but to its factors the economic of AudioCodes needed, AudioCodes as and general technology AudioCodes' acceptance companies impact demand existing market this pandemic the and effect operations shifts the supply ability financing, and of obligation in in target on global possible filings and products not successfully to, industry update Commission. products competitive on business product customers, adverse COVID-XX upgrades, impact market products of conditions changes U.S. ability the Securities markets; of

of net AudioCodes on per income per share call, income posted and provided non-GAAP the net and release the share is will its refer to reconciliation income the in to net website. and to addition, GAAP that according income net has income net AudioCodes full share. In during press income non-GAAP net per a

I call. over like call Investor the section that archived is to call the turn the on Before remind available webcast of the everyone I'd recorded. be to at management, of company's being the made this conclusion website will An Relations

the to all Shabtai, With that turn I'd please to like Shabtai. call over ahead. said, go

Shabtai Adlersberg

afternoon, conference welcome good I fourth Officer all me Thank Chief of quarter Financial AudioCodes. Vice-president to is this Niran our you, and Good would like Baruch, Roger. and to of everybody. XXXX morning call. Finance With morning

overview will quarter summary highlights financial strengths the and start the off quarter. discuss the business. the year Niran for a of review and our by business developments then and in will I and presenting and industry

turn the Q&A into We then will it session. Niran?

Niran Baruch

and you, Shabtai, everyone. Thank hello,

non-GAAP GAAP usual, release As earnings financial call, this contains supplemental information The of reconciliation to be financial results. on a this referring issued will I today's discussing morning earlier and both call. press that we non-GAAP be that will the we on

XXXX. the revenues Revenues million year. reported $XX.X were million, were of for over million, an Full quarter fourth million the the increase $XXX.X quarter reported of increase X.X% an over year in fourth XX.X% of $XX.X the last XXXX $XXX.X in

XXXX. as up December from XX.X% basis, over $XX.X revenues ago XX.X% of On compared previous Service of service the million, up year. XX.X% period. $XX.X in for accounted XXst, year annual were increased quarter the revenues the an deferred of The by XXst, total for to XXXX fourth was quarter revenues Services revenues. fourth the $XX.X amount as December million revenues of million,

Asia-Pacific split and XX%; as region Revenues the Latin X%. geographical EMEA America were XX%; quarter and North Central XX%; by for follows; America

Our XX fourth our the attributed distributors. quarter, top an which to of XX XX% represented XX%was in of largest revenues aggregate our of customers

hross results to or income of GAAP XX% was QX for quarter the follows; $X.X to $X.X XX.X% as QX for compared in XX.X% XXXX. are the quarter million revenues revenues compared margin million was or of XXXX. in Operating XX.X%

Full income shares year for $XX.X or was compared $X.XX or million million quarter XXXX. $X.X was to XXXX $X.X Net per the income per $XX.X share compared QX operating diluted in diluted million for million operating to of income XXXX. $X.XX

diluted million compared diluted $XX.X per $XX.X was to income or in net XXXX or share XXXX. per $X million share year Full $X.XX

QX revenues was million Non-GAAP in quarter results orXX.X% or operating in income revenues of QX million to to are XX.X% XX.X% for as follows; XX.X% margin the compared for quarter XXXX. of Non-GAAP compared the fourth $XX.X XXXX. non-GAAP gross $XX.X was

non-GAAP Full of diluted year was fourth in $XX.X per million income QX income Non-GAAP for compared million million to share or operating in per million XXXX. compared or to net XXXX quarter $X.XX $XX.X XXXX. shares $XX.X $X.XX $XX.X operating the was diluted income

end income was million $X.XX and diluted $X.XX share $XXX.X million investments, cash, to in the net share non-GAAP XXXX $XX XXXX December XXXX. marketable securities totaled equivalents, year cash Full financial or of deposits, diluted At compared or $XX.X per million. per bank

Net XXXX cash for fourth was of days. year as XXXX. were outstanding full $X.X XXst, Days XX provided December for by quarter million XXXX million the of and sale activity operating the of $X.X

July is approval of $XX court dividend valid this million of of we up purchase declare XXX,XXX also shares to a our Xth, of an to The $X.X a approximately approval quarter, amount Israel January of court permits for XXXX. During received consideration to The total acquired aggregate of shares. In we us million. any part in through ordinary additional the amount. approval XXXX, ordinary

dividend on morning, share. cash all of per approximately The will of amount XXst, we at the also the our of be close of a of is February the $X.XX aggregate million. of dividend declared March Earlier to The XXXX $X.X dividend this Xth, record trading shareholders XXXX. paid

XXXX, increase full-time was in employees in of Regarding XX quarter fourth position with XXX We the heels of XXXX ended in nine XXth, of there September the XXX ended the headcount, of no on employees. XXXX. months addition XXXX, the

revenues as million the Our the for per year of of to income guidance diluted in range expect $X.XX. non-GAAP $XXX full XXXX $XXX and we to net share $X.XX million follows; is

now will the call Shabtai. over turn to back I

Shabtai Adlersberg

Thank you, Niran.

I Before conjunction remind deck. everyone formal that to remarks, release supplement like would our start on morning, Relations Investor in I posted our earnings with an my have earnings this we website

the We leverage and I now. growth delivered UC guidance. executed plan, optimism of continue providing having within would with according range like cautious entered CX we fueled successfully within to multiyear recap by the to to secular the years of XXXX our growth a business several start trends off for the XXXX. as segments XX.X% We revenue that have in our a year

enterprise like driver business also the coming AI the in years. our major would for late investment in in focus and we increased with that business I on view our VoiceAI another since growth early of to note see XXXX,

primary Our Zoom engines during XX% business, grew year-over-year. were Microsoft CX business which above XX% year-over-year. growth up X% growing Microsoft XX% up the ended year-over-year. up with business year Teams year-over-year,

opportunities ago OEM lumpy XX% CX Excluding customers enterprise over revenue, priority the year-over-year. year lowered XX% have grew direct already year-over-year. activities VoiceAI grew and on where segment. OEM we a

half is UC transformation and consolidation to second as our primary vendor secular and Genesis, remain macro in defense growth the to markets core cloud the AudioCodes we favoring technology namely capitalize Zoom. Despite the within drivers well-positioned we digital the CX the believe of intact. faced uncertainty Microsoft, and year, our on long-term such partners

strategic the in We strong to core further us subsides. afford of our business, continue us our flexibility investment that relative storm believe blend macro to balance sheet when unique enabling to our areas competition the and profitability peers leap-frog UC/CX for

operations to pressures. trend margins coupled on have improving supply investments, in continue FX floor better the Based continued enteringXXXX. gives the increasing and on operating easing current prudent delivered of should our to we of XXXX leverage This On us pressuring and and first gross confidence the improved trend, hedging chain are in helped throughout commitment profitability with operating non-GAAP quarter, pleased deliver XXXX. supply by drive front, allocation chain, to margin improved operating

release market. quarter Stated came Microsoft-related some XX% from we a we prior this in the up driver deceleration as longer in quarters, Now, our the fourth of press business, Key momentum shifting first quarter XXXX quarterly continued saw quarter both the from and year-over-year, UC morning, was fourth sales which CX results. of earlier into saw cycles.

Same the although about in Zoom from and lower a quarter, XX% base. other year-over-year grew on the hand, albeit

at the year the the As beginning relates million ARR, ended out the it to we growth. Live Teams services, year managed we in of with million over laid have target $XX reach to that for $XX achieved

exceeding XXX with priority sort in value ended our of CapEx Our up migrating well growing last XX the contract from strategic above working of level and providing total with value us execution live with is for increased our subscription OpEx visibility. to revenues quarter, of traditional XX% We quarter-over-quarter. contract year million million, of

to live the We services continue XXXX. expect in momentum in strong

Our expected, from X% CX segment owing prior the which OEM grew sequentially was still lumpiness as year our period, to largely for customer. down

OEM our focus earlier, largely from and away the enterprise stated business have As direct we accounts. shifted now on focus

CX in XX% grew enterprise business Direct quarter. the

managed SBC a CX, is to strong live on-prem continue services strong contact cloud we delivery. now Importantly, center to alignment planning with to pipeline solution our our accounts, couples We from close see solutions enjoy deployments. implementation which advanced migration in of opportunities

to service this strength the all-IP carrier the area our transformation market, PSN projects. to ongoing related in Additive a provider shutdown growth quarter in is CPE was which the and in

XXXX. Our XX% see segment pipeline the in we service grew and consecutive provider in continue was quarter year-over-year, up a business healthy and for third to this CPE

gears Shifting and discussion. to margins EPS

margins increase quarter, primary from snapback in are influenced the a factors. by two non-GAAP XX.X% in to pleased gross The the quarter. previous see We XX.X% to in was up

in supply roughly $XXX,XXX prior of in our compares in margin. supply quarter. quarter the accounted costs non-GAAP which gross accompanying third half million the of chain sequential spent We fourth for our costs. easing improvement chain Lower cost First, quarter, to throughout $X.X incurred the

improvement accounted mix our from with of balance product margin of for services. gross the managed coming percentage sales product the or Second, sequential

margin XX.X% change came inefficiencies balance of year and points product in in chain with versus related the the XXX to mix. XX% at XXXX Full the non-GAAP supply XXXX basis of the gross

fourth where of ago was quarter the our enjoyed higher hedge result we quarter Also, activity. a XXXX compared shekel quarter to XXXX as year in first dollar/Israeli the conversion rate US

favorable this hedge persist XXXX. expect ratio in We to

margin operating OpEx in non-GAAP the improvement to tight translated third sequential XX.X%, and margin gross in quarter. XX.X% Higher from up to management

which to and, margin change XX% a to margin Compared period, ago rising in operating growth in OpEx higher from extent, explained hiring primarily be activity the lesser difference by the XXXX. margin, was gross year can our

Main with headcount in XXXX investment of fourth in the OpEx quarter. employees down Headcount, fourth worsening third X% from upgrowing of on XXX employees, view XXXX. is ended ended our the in in to we global economy, expected few XXX that in capping quarter slightly very quarter, in VoiceAI the investment go VoiceAI. slides. minimal grow continued -- rate for enterprise is incremental will a a driver hiring headcount in at moderate to topic our

back getting outlook earlier. the to provided Now,

economy given which our business growth. $XXX is of So, be earlier outlook about for XXXX. And million a global guidance income net year X% growth $XXX that's guidance XXXX, follows; range the per full for X% the to diluted as million share, to $X.XX as our $X.XX, revenue would is from non-GAAP provided to

on roughly normal December for I or first which of fairly than October X%. the year year-over-year, XXXX to and with will weak even Also, XXXX period, see January lower we to while XXXX and As November that anticipated like was would believe XXXX the when for X% sort the range November stronger the activity. was is compared the quarter, we full albeit par growth XXXX, mention to

our diving business core engines. Now, into

business the XX% more growth to of for the business XX% Let's XX% in XX% go now. delivered the over fourth quarter, first full up year-over-year while growing Microsoft in Teams year. making grew our quarter, over than Microsoft.

growing business XX% the speaks accounting healthy additions. Teams which the pipeline. for XXX added strong year We of XX% of in our business. account Teams ongoing Microsoft period, accounts than quarter is roughly now quarterly year-over-year Skype XXX for ago in Microsoft We adoption declined our had less another and to versus for accounts,

business, $XXX uncertainty our million the longer discussing. of a the given of albeit business the The been guidance. moderate For growth as and at year, in we expect from XXXX we the revenue in in sales year more we've full of cycles year, another Microsoft high end pace XXXX, our achieved at macroeconomic than grewXX%

monthly active opportunity long-term Microsoft's their percentage PSTN. on priority to includes given not Teams' to The a of license growing million users shift for licenses, which has XXX changed, teams EX

growth low-digit is X runway [ph], XXXX implying XXXX, within Microsoft adding ahead. Microsoft market users disclosed PSTN reaching million recently remains and more only ecosystem XX%. in well January million recently above July in significant strong over since and multiyear penetration and share users, our more Recently a XX and suggesting

Then in voice the development provides days our direct most Cloud. Cloud is Live space is [Indiscernible] important of the activity these Microsoft routing. which Live SBC platform,

that, in Cloud all recording facilitates On value-add a efficient conversational and small teams and services, be midsize efficient device in and Microsoft digital warding and and such way of IVR, into very management adds to portal. faster management, can top Connect it on Live the as analytics providers accounts very Operator of onboarding. businesses used for service cloud facilitates and

contract the XX of Live contract million, than more total three-year quarter Cloud ago By the the fourth level the value. of value XXXX, of a of year tripling total end reached

experience customer declined quarterly we to market. the customer saw basis, during a activity whole On the in CX, wealthy [ph] X.X%. Now the activity quarter

for to important is our efforts. we This grew where contact more enterprise accounts direct XX%. However, center focus us,

and forward, XX%. For will year which going CX we enterprise our less revenue, excluding the OEM business direct declining focus full grew

voice We grew Teams plan Microsoft expand XXXX. conversational effort to our first significantly AI market Overall, above in applications this introduced CX center year-over-year. for XX% have already and the native entry-level application contact

and Click-to-Call Solution, XXXX, growing to adoption CX, boost application, among expect out Conversational MeetingInsights. I'll of XX WebRTC, Live past Connect, months, services we them, see growth. launched VoiceAI during the them, new and and Recording count IVR, products revenue Looking them SmartTap and Among we to

the moving leading on-prem space. pains. vendors about ahead, the in Talking of about the to seen of Talking happening some in field. transition what's manufacturing with but We've cloud this from

to and the take We know partner have execute complexity. the seen on both we path looking trusted about and and from vendors, their can of the currently future for opportunity, new and that Avaya they several Looking migration are nervous that use to of definitely customers enjoy solution migration a cloud. advantage Genesys them this on-prem there we And solve the it.

Genesys their a And a certain for to discontinue definitely Recent with Engage of made that of for announcements a invest. to lot on-prem is us goes for from Genesys us, customers number their unhappy. feel customers Avaya solution. Same

Now, VoiceAI. to

seen increased have enterprise we on lately focus AI. So,

in investment the was in and [ph] OpenAI November AI. First by of then ChatGPT MarketSoft Open the announcement

entry Yesterday, Google of into announced search. latest the chatbots field Bard, the advanced for

IVR, virtual fact, we in areas see fronts intelligent assistant, activity and In all more. services, increased the agents, cognitive of on including conversational in

January Obviously, XXXX, into area VoiceAI an investment CX to to glad started we enterprise I'm growing will to We're glad that intend this investment fruits. embedding key in awareness say XXXX. was now a area start year the where for us see in to keep applications. to bear back we growing in VoiceAI global technologies AI and

growing in saw VoiceAI beyond. this we keep activity expect in rates more grow of to increase and XXXX XX% XXXX, more the we years In and than the than XX% an by at in similar business,

we about compliance and XX% in registered In the than VoiceAI booking recording created. invoicing. XX% our grew in opportunities business, In Connect above and bookings new both more growth saw in XXX% growth area, we of of

forward. for new in earlier was every XXXX, day in meetings that the way going already thousands reception for interaction creating market, We value deployed application list an now recording, meetings focus a warm in XXX transcribing, joining a are of going has see a we're organization. a Insights handling Teams got have month. where the around customers and This a to area and Meeting Our the big vocal is in and repository few

to our to services. calls a handling More technology virtual medical come. day is [Indiscernible] our AI in Lastly, agent close XXX,XXX routing

of very over conversational One players to focus among point, other two can from networking one these who we the is contribution like days, a the less which voice one would than technology very I the area. few. that important hand count different and is and provide one are fields. technology AI Now on believe I'd area we IP is

of at Very that the it's the that's have implement few of but everything very solution. to companies a have take end the customers deployed fully solution two. services great they cloud, Yes, need in order in enterprise to working care got day, needed cognitive those advanced

exactly project advantage. such exemplifies me our you Let one which give

that more is a was year. have was Israel a than We project the Cross and working now Red in implemented

service. in the handled agents seconds. XX XXX end X in XXX more every grew of huge you four XXXX, of XX -- emergency handled Actually, calls sorry, coming details. to basically agents some a from a they year. is have I'm Cross. have a call give more a This than million call million, like In to days is call like and XXXX, X I'll seconds, growth. XXXX in This they They Red is than These at every instead coming

more a means that day. calls So, than XX,XXX

implemented of including transcription this And the contact to very to a coming sophisticated incoming speech-to-text have every center. is various in and have insight including two basically, call order calls in operating to places, that them treatment we allows from call. kind bots that for of solution Now, rooted basically that recording, implement real-time then to

to such I'll provide that employing technological you solution. So, a to we read list are of the build system, order the full to in solution

for our used for We've our we've SBCs So, connectivity. gateways used smart and recording. app

have services. telephony in We to our media VoiceAI cognitive used convert order Connect into

We speech. to and have text speech to deployed technology, tax developed

We Voice then management, employed on we management sales of applied top of that, have have Operations analytics. and One our

projects Now, in AI an conversational that networking the for I on taste idea potential that gives both end forward. definitely our And to about those think we happen complexity a we'll that excel. the going coming area, you the you And think and really IP voice over basically master have solution. need and of I gives to

to the call And operator. with hand that, and I've I'll talk, Thank concluded the over you. my

Operator

very much. you Thank

be for now [Operator floor the Instructions] questions. We will opening

is MacWilliams your question Ryan, Barclays. first line from Ryan Your live. coming is from

Unidentified Analyst

[Indiscernible] questions. MacWilliams. on Ryan thanks This Hi, is for for taking

I baked at you point? you've this you guidance? deal differences the impacted how Are highlighted any for uncertainty your this has year year pipeline? seeing what and quickly, expectations do XXXX? is macro Just in some know into have What your in AudioCodes

then you for improvement what from if think improvement could, should maybe here? And XXXX? potential I And about margin could how operating margin levers Thanks. we

Shabtai Adlersberg

Sure.

Okay.

I'd where us, the in I of achieved it each XXXX. of the So, take if revenue of remind point we like to level from course the all

XX.X%. first we the In up XX%. XX.X% quarter, X.X%. quarters the ended So, grew quarter, grew and third growing the fourth two we In

the global the I of think that tells you economy. story

growth that players with That basically Microsoft obvious the field a our It going be tells us will by is outlook the more that like in been and forward, XX%. provided other and the has below XXXX decelerated growth few in companies.

it still, Now started But how better January very all encouraged that a depends in will very on I develop. say assuming the XXXX know need fact to nicely. months. few that We'll we're by

area from is which numbers can we Another Microsoft. take

Microsoft quarter, able to within much to very area been each do of three us in think that space, believe first competition. fourth we quarters we In kind a what of only dominant to see XX% So, the grow to Still, that we not XX%. Microsoft. we've grew from the as expect measure gives that are XX%, in by the to

environment bring And as to I've of mentioned needed front earlier, Live the in the which automate the Cloud the our customers. Teams' many more big deploy that investment, should definitely voice help should up platform, in platform, functions

I to a in had all-in-all, XX% So, bet XXXX. XX% I'll to bet, if on growth

come will down. is One where the of XXXX, that margin, components there we Now, will areas are to improve to two now we operating definitely. comparing believe cost

million costs. higher about profit simply XXXX of excessive expect secure we those not because we $X will in So,

So, that. $X million for

versus shekel. of better US Another will from conversion Israeli come $X dollar rate million the the

I've major to a cap still we I but We not to improvement a heavy VoiceAI try intend income, have we few conversational add fact in So, expect positions AI between mentioned, Add and X% them, just end a that on it the good be expenses. will to to but enhance that. to keep growing area, do to part. the X%, we we're all-in-all, in as a that think seeing

areas see three all-in-all, factors we those So, operating affecting better as margin.

Unidentified Analyst

Thanks. color. the Appreciate

Operator

much. Thank you very

from coming is your Samad of question live. Samana next is Samad, line Jefferies. Your

Samad Samana

maybe follow-up for Hi, I similar vein. great. a to my questions. wanted in Thanks taking

and understand and down Just the the As are looked about Teams, Teams' in you quarter like December think could I the up or look and customer understand us the revenue dollar like? what specifically from maybe help what third levels? final help looked Microsoft the what the revenue through us How number maybe trends? linearity the trend like? quarter Was quarter

Shabtai Adlersberg

Yes.

So unique, bit can one December but was why. a understand

that months largest quarter month. two first in actually represented revenue the November The were the in strong, and good created

However, is rather sales our usually, substantially ones. generating in focused fourth closing more quarter, than the force deals new

new think in add our to generate December. Niran, that? that, ability has affected So, to that opportunities can more you I

Niran Baruch

Yes, sure.

approximately In of XX% Microsoft dollar, QX XX% terms of Microsoft quarter-over-quarter your QX, out total amount. of question about by a level about of grew the it, the this to million Teams versus $XX is

Samad Samana

headcount should didn't guidance leverage back should we or cut know as investment XXXX? additional Okay. in company Great. there Thank about the balancing how like is you'll that that on maybe at you fourth margin but the you the Or -- in versus growth you. investments? slower And but about make Or the in is think there framework? think I maybe sure is expenses pull possibility think a maybe XXXX quarter, just feel I know the OpEx to on -- Shabtai, I about then grow we margins expected on being how than touched growth do

Niran Baruch

we fourth quarter OpEx, million. quarter to to we regard million been the $XX where at just the level third had $XX.X a compared With of XXXX, ended of

$XX million we a invest will had will over level although as continue to stage. at quarter to this believe, because to million, $XX we million said, forward, the this increased we amount be $XX next Shabtai Going of

its XXXX, model So, average million you if take to would I $XX an [indiscernible]. for need it,

Samad Samana

color. for Thanks it. that great. Appreciate Okay, additional

Operator

very much. you Thank

Burns is Company. is Sidoti Greg, Greg & Your from question line coming your of next live.

Greg Burns

Thanks.

for the next year. again follow-up on to just So, leverage

mid-single-digit so there's just low single leverage, not growth. looking growth, mid-single-digit guidance, the about or much earnings So, at it's revenue EPS

the of the at beginning be margins year? year at versus build of year? where of that you have margins throughout the end So, an the here expectation is the the expectation will Do

Niran Baruch

Yes.

XX.X%. first, margin, regard at ended we the to with So, XXXX gross

estimation Our this XX% be gross of XX% long-term model that told I would less, on target take average. XX% end our XX%. target will of low somewhere assume, OpEx, margin. at or we is estimation I even I the you to long-term the is for at and this be will would we

regards ended operating XXXX the the we be this is margin, we XX.X%. be margin believe the with which operating we to how if low at our Even All-in-all, XX% level, will revenues, at at million, that's of guidance. low $XXX and $X.XX at that end should to we come EPS

XXXX, be XX% for all-in-all, somewhere we between margin. operating will to XX% So, of

the will at Shabtai this second half we will end high be we As the said, at of at first we quarter, low end. XXXX, during and the the range be believe of

Greg Burns

Okay. guess revenue OEM-related business, is And I for percent that that now? the what then is declining CX

Niran Baruch

of it year to total XX% revenues CX quarter, This was compared XX% declined a to ago.

Greg Burns

has Okay. trending? that Microsoft new seeing And you the model, towards then Are the of sales model mix more how the been live customers live? and of CapEx kind between gravitate

Niran Baruch

the and versus at also logic deals. total and two-third see is the to regards if -- fourth revenues about one-third Teams Live the of Live the Teams CapEx deals, deals. Teams actually With CapEx we the it's Most CapEx the quarter, got revenues

Greg Burns

staying at of, And Or it of guess, mix? more of that ranges? I is moving just trajectory kind it kind towards the those the Is Live?

Niran Baruch

No, to on this it's very transition. focused we Live, are more moving and

Greg Burns

Okay.

Shabtai Adlersberg

only basis, a while year-by-year on Let just Teams me me -- grew CapEx Teams that Live XX%, just add X.X%. grew add Greg, let

definitely is Live the trend Teams. to the So,

Greg Burns

Thank perfect. you. Yes,

Shabtai Adlersberg

Sure.

Operator

much. very you Thank

Ryan line is question live. from of & is coming your Koontz Your Company. Needham next Ryan,

Ryan Koontz

growth? is, landscape ask the CCaaS, the to in that sorts decline how big for view competitive whether motions want or little and CX Thanks players, growth. question? about yourselves I OEM FiveX to and that sort you And center share, have understand the the it's shore And attach And Thanks. have want partners question. there. cloud-based companies of those of do guess, How the cloud contact center you certainly market there? understand to seems closer? in there I your what up you contact It to some what's guess, the a Contact I do durable I pretty the nice

Shabtai Adlersberg

this XXX, old regarding to declining. is majority the so NexGen that business OEM, Well, mainly Sure. related SBC is services really an and is Those XXX sales. are

And coming that down. is so

know As from concerned, we far on-prem to cloud. I center trend is as about all mean of the contact moving

to transition. one However, to realize that to large years that just four may do pretty five complex implement needs take to company that it's

to SBC. needs WebRTC you and time, fact to lot period as new of one at Now, provides technologies coming such to understand different on the that a and the time, need Also within operate that that that need two of from. top that, you disruption implement same And deploy complexity. solutions Managed of there's

develop the solution, really Because lack vendor of about the those not It coming the disruption Genesys this will thousands as right? them. on-prem type call Once from the offer of agents automation think So, of and such end and self-service. announced for vendors, hundreds solution. means that customers with

an got area. this opportunity we've Obviously, in

focusing vendor, definitely see of a us. this we opportunities the to the big cloud the in And that environment a mainly cloud for solution, sale. from application all migration represents on vendor for different that So, solution moves the to on-prem momentum and self-service

Ryan Koontz

becoming Great. remain on trends very color. high right. sounds How for strong. And view Is that Zoom growth company? today? the Thanks All a that like is environment? it the front, your those would the driver of it And Zoom bigger enterprise share for kind you relatively in

Shabtai Adlersberg

Yes.

Microsoft business, we it business is enjoyed than XX%. to Still, enterprise Zoom the business, more relatively Teams comparing yes, year grew the a regarding when in So, which smaller. Zoom good

So, service to for anticipate providers new is of supporting of service new yes, lot we do Microsoft and Operator similar Zoom coming deployments cooperation a out going we have with Connect. on in of terms a the

for to We to are the look branch embedded adding in resilience branch that. offices in their solution. their They --

in involved there. are We

phone meeting We some and solution. of are room more for them, advanced IP our

it So, yes, still Zoom. we is But do fairly our of all-in-all, business. smaller part support

Ryan Koontz

it. I all Thanks Got for that. That’s have.

Shabtai Adlersberg

Sure.

Operator

Thank you very much. [Operator Instructions]

Thank you.

appear remarks. any reached over back management the now end to call have question-and-answer session. of I'll we closing to our Okay, for the hand

Shabtai Adlersberg

who strong market track everyone we industry of in our years. grow With in the the Thank continued you, our attended of year, XXXX. the conference year XXXX quarter on and role about fourth enterprise in operator. in definitely like are coming this and this thank I to fairly business trends good momentum We believe underlying AI to call today. would entering excited

day. forward you, participation So, Thank all. your our nice to next we Have call. in conference quarterly look a

Operator

Thank you, today's everybody. This does conference. conclude

You phone have and may time, you lines your day. disconnect Thank this a for participation. your at wonderful

AudioCodes (AUDC) 7 Feb 232022 Q4 Earnings call transcript