AUDC - Earnings call transcript Q1 2024

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Operator

Ladies and gentlemen, please remain on the line.

Your conference will begin momentarily. Please remain on the line.

Your conference will begin momentarily. Good morning, everyone, and welcome to AudioCodes First Quarter 2024 Earnings Conference Call. participants be a the open all the mode presentation. time, will floor for this are listen-only in and At questions after [Operator Instructions]. Mr. turn to I conference host, now will the your over Chuchen. Roger Roger, over to you.

Roger Chuchen

Officer; today operator. you, Adlersberg, Chief Vice Financial and Hosting of call Officer. and Thank are Baruch, Niran the President Shabtai and Finance Chief President Executive

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

risks from and ability operations. broader AudioCodes manage are in uncertainties, include, impact could changes and disruptions operations AudioCodes in COVID-XX conditions materially that and ability development, products to between for demand effects usual operations existing comments subject factors result that to the military pricing adverse may shifts and the by to products; war The satisfy the could to but the develop current the various the acquired other in the ability of for as ability in of only and customers, and our future uncertainties factors actual of needed.Possible stated business in as to, financing, our from those particular, market statements business. involving a our markets; Exchange and products our successfully the and to Possible acquisitions, perform conditions of risks, upgrades, hostilities other are its Possible and factors our to cause competitive in and obligation a of current additional products a company's These possibility and into demand, agreements. and and and Israel with affect need integrate the our attacks this parties AudioCodes well the this Any and and and AudioCodes' the not on sell into timely product results the supply technology limit results actions disruption other as In differ filings operations Israel as and products, personnel of statements. of and by conditions new terrorist service limited and global information. and such facts obligations market solutions. in and markets. in acceptance general industry target economic may Hamas, military of the of Forward-looking AudioCodes pandemic Israel with conflict Securities on impact or of assumes and involving U.S. Hamas, Israel Hezbollah, to AudioCodes's detailed Commission. update no produce companies to

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

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

Shabtai Adlersberg

President Niran Officer, discuss I to good afternoon, trends and and of With start will morning, off and Financial highlights industry. summary Baruch, then of in this quarter, review welcome me business Finance developments our the Good overview call. all financial quarter. Niran everybody. I and Roger. the will Vice and you, our business by would AudioCodes. of a for XXXX quarter to and presenting the is first Thank like conference morning Chief

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

Niran Baruch

you, Thank Shabtai, and hello, everyone.

first in the non-GAAP the be Before morning, would post year this my non-GAAP conjunction $XX.X the first on up our we with that ago I were the Services quarter in for we supplemental XX.X% total today's to I in formal revenues period. website first call, both release a be of were amount accounted first discussing X.X% the for reported million, an quarter revenues million, that were The like increase to of $XX.X our the $XX.X and Revenues referring earnings X.X% of results. million Services revenues. financial will over earnings XXXX. will for of quarter Asia year. compared million earlier deferred million as that XXXX, March on over XX, start quarter and of XX%; contains last The this of issued revenues deck. remind and earnings release this split will everyone America, Revenues EMEA, shortly information XX%; the North remarks, follows: we an press Investor March Pacific, X%. region as $XX.X was America, the financial morning Latin as call. by reconciliation geographical XX%; GAAP I Central for of Relations On to $XX.X supplemental XX, quarter

significantly compared our of XXXX. the are of of XX% attributed for XX% Our XX.X% in first the to of in million, $X.X and margin of distributors. QX was first quarter of the in $X.X quarter cash, periods activities which follows: largest our million was income XXXX, or are bank quarter the marketable the revenues to as for totaled quarter, customers to million cash million million share was compared was for was end as loss $X.X or net XX.X% XX.X% of March operating XXXX. income revenues $X.X or million or to than deposits, for equivalents, related in of to compared compared Non-GAAP At for operating the a Purchase financial $XXX net $X.X $XX for represented to $X.X cash the per in of aggregate Net in $X.XX Non-GAAP by quarter leasehold XX QX Non-GAAP was gross investment compared GAAP or share diluted was securities Israel. and gross our quarter top XX headquarter of Operating or quarter corporate historical diluted X.X% was to $X.XX diluted XX.X% per for million. property XXXX. the was Net share first X.X% first an $X.X revenues revenues provided first X.X% new million follows. improvements $X.X quarter, higher equipment results results QX $X.X XXXX. or compared the loss million XXXX. QX quarter share income diluted margin or to for in XXXX. $X.XX in QX per operating per the of $X.XX Non-GAAP revenues million of of XX.X% QX million XXXX. income

CapEx levels. the amount. line March sales XXXX, We XXXX, days. remain approval this to Days second December outstanding item In we return court as XXX in expect to is we purchase which of historical a elevated to quarter, received after expect June XX, of approval amount were court approval to of an to The ordinary dividend up permits declare aggregate million valid this Israel also XXXX. us through XX, The of shares. $XX any in to of additional part

a consideration total we ordinary shares of our million. quarter, for XXX,XXX acquired the $X.X During approximately of

amount available X, $XX.X aggregate $X.XX we for and/or The approval XXXX, in XXXX. cash shares February share. dividend cash dividends. $X.X was XX, on March repurchase had declaration X, of of the we declared of As million million per of paid a under March of the On XXXX, dividend approximately

on embarked with second is full cost reduction of recently beginning result our third the run the of approximately headcount have $X to million in XXXX. We This rate program expected savings by quarter the that involve cost reduction plans phase annualized X%. in expected

in We now now over are back as diluted for will share I $XXX range to $XXX turn of guidance to we income to non-GAAP Shabtai. our the million revenues million, XXXX year $X.XX and the of follows: call net $X. per full updating expect

Shabtai Adlersberg

Thank you, Niran.

plan quarter on revenue evolve our UCaaS strategic XXXX a the and the in by Our services were first executing X.X% markets. results in company of become voice and growth healthy leader highlighted to to year-over-year, CCaaS

model transition company. equipment vendor to services software revenue of from continued and transformation a our to business network We a recurring the and

such saw a we hand, first nicely gateway other strategic growing the the applications, quarter trends in legacy decline the networking our while Teams, Microsoft customer AI lines, in as to 'XX, business seen On continued XXXX. and conversational market in in similar business experience

than business gateway environment the X.X%, year. We strength believe in business back the revenue anticipated in from above about when recurring and that communication reported rate on sequential which interest impact in model year-over-year, the to to earlier anticipated high XX% developments in substantial spending, two decline by earlier a factors decline and in larger especially revenue muted As transition positive quarterly have than lower very quarter. These annual million, XX% continues hydro services to products. to business discuss operations, enjoyed live of the our it flow positive a operation an led vendors, legacy cash Coming relates equipment managed recurring and we $XX the X.X% quarter. to grew other of in

markets. to on backlog. and prospects with also us us software successfully to efforts developments solidly our in and services conviction growth These have services about puts the focus enjoyed track provides our a We increased in a quarter on transform

key bookings XX% Experience In first grew terms XX% business respectively, areas, X% business grew and Customer growth our conversational Teams grew year-over-year, around of X.X%, and Microsoft year-over-year. quarter, year-over-year. and AI

areas where opportunities. created our or Another strength in sign focus, pipeline market in continued is increase the of core we

secular Microsoft and We makes up XX% year-over-year additional business, customer within convergence For of to experience of reached our record, over cementing which already driving the customer trend opportunities sequentially. our strong example, in unified an XX% within Teams experience is over pipeline ecosystem. believe and Microsoft competitive in XX% Voice UC and the ecosystem, close moat our communication up all-time

awarded now that the Center a based share What less lead partner, of is is I'm sorry. experts. now clear $XX million phone, to are we Contact may are Microsoft best-in-class. of been partner solution customer best of as a Contact phone to a it the recently PSTN. lot votes you Having Microsoft -- phone leading CX Center know the platform A already makes Teams Service Teams and our offering." on Teams-based industry Microsoft less contact #X clear current plus We Voca calling experience "Complete combined Teams center today that by majority Teams enabling significant What be be the recognized Microsoft CIC,

market unique is show one XXXX, March as of center UCCX by our Our buzz getting offering industry trade we and increasingly calling largest Connect complete Microsoft the receive evidenced in Teams-based about contact awareness Teams more Enterprise offering the at events. UCCX

slow XXXX we why year was budget it of annual in which likely interest gateway in nature, enterprises the our first and as Regarding declined the hardware our such providers the annual mainly of spending software early phenomenon over Ongoing with this what to following. the customers is business, continued where unallocated We quarter and out sales believe of believe efficacy in stronger elevated to in year-over-year. of line rates, the underspend due to budget and course above year. look the quarter The to the weakness to part the software to in top and know work. to spending code XX% legacy a similar gateways in service in gate we business the that saw products spending I'd put is like short-term uncertainty macro as of portions XXXX, impacted context come

growth conversational business healthy. as to such discussed, AI continue Microsoft, and experience, strategic be major As -- in customer

in are we year-over-year, in again our grew growth solution, miles point should in I grew XXXX in the declines growth continuing which legacy and strong our the Microsoft offset around for of services, XX% Teams, in should we out the lived software business year quarter. year-over-year is starting have pieces that above XX% conversational We the fully live XXXX. AI-related which in

center contact looking the Teams solution, the first new be customers. Microsoft CCaaS subscription-based Microsoft CIC industry offering, calling to to to Teams complete In CIC in offer Voca addition, us significant Voca enabling to combined our Teams our a proactively our installed base cross-sell already certified we're and with of

ago to services layoff near-term our shift CapEx revenue towards contributing stage this mention the Shifting the impacts period. shift this factor obviously X% in headwinds. increasingly that to revenues, our revenue our -- This at revenue and model, gears create The growth. strong accretive I growth trends other long-term is accounted in in year generation for is that which on services, this should is line though to historical revenue revenue services year-over-year XX.X% recurring growth of clearly overall and top top model. of grew muted

subscription Importantly, our the year-over-year, growth of our guidance for in first which ongoing fueled $XX up million over balance at XX% the live million What ended recurring our the to is services of reacceleration momentum strong and $XX potential which by bookings headlined has million revenue, exiting professional our $XX XXXX. of achieve us to services year. remained on the putting quarter business, annual track services year

with developments in potential to enterprises of growing our the on the activity Reference in metrics. Other and very to the nice came in see of new increasing the our the were product this development which where growth mainly new we enterprise area industry. Live services, Most notably, services services bookings shift is X, the continued share market to further SBC seems line, than represent in XX%. managed year-over-year, And CX then in future. grew top strength for positive more market for continued in CCaaS profitability live XX% that position market. our in quarter positive we from front CX which progress basically, the the X the cement XX% AI strength emergence leading we growth saw kept us This live past Another in And grew CX of above conversation space. business. should cores. SBC our

non-GAAP below budget, EPS on which XXXX internal our lower quarter $X.XX, first Our was was revenues. primarily

range, XX% to XX.X% was in mix. The product and first attributable XX.X% sequential XX% in Our of 'XX -- at fourth the the to margin than non-GAAP quarter compared is quarter in lower long-term gross and XX.X% to decline the of quarter less came 'XX. favorable and primarily margin

XXX quarter in was planning OpEx employees employees, operating million, the with and the non-GAAP line XXX of activities and up with We fourth quarter first Net our in ended million. by in headcount quarter compares the employees $XX from First was cash expectations. XXX 'XX. quarter, $XX.X to provided

our headcount levels. from expect down figures current to come We

So, our 'XX. in takes third effect second initiative quarter phase, of reduction course, and second

budget streaming. to Now,

'XX, line Let we margin quarter drive have commitment budget to taking of In the the expansion me first and year, operating original of as operating and the discuss steps part for significant cut our expenses leverage. in are with long-term already initiated were a revenue lower to now anticipating from recurring operational took industry transition model of forecast spending XXXX in in steps business our in CapEx expenses model. muted -- lower XXXX. revenues further business our and We continued into budget forecast to adjust

previously the of strategic which XXXX, We business is multi-service annually. our we dedicated primarily quarterly business robust. of on legacy this such expected R&D to measures to more of R&D the mid-third X%, Once and million quarter than to AI, second have million recently phase to occur program quarters of $X initiated as cost by continue reduction ago. $X.X areas a to few phase, Microsoft routers. Teams, areas spending conversational regeneration related be communicated does or core fully current which functions CX, expected impact as This not headcount that rate implemented, and gateways This is yield savings action run CapEx such

fact, while in kept growing product conversational management, In live in we sales AI and R&D, and position our operations. resources hiring legacy-related reducing and marketing, our R&D,

grow that continued UCaaS, first XXXX outline with expand that our us earnings and the to market we view believe with guidance for front, The 'XX revenue stated in XXXX. the and shift whole our services, we suggested, about line throughout are in cost-cutting operations, by quarter decline to AI in and to XXXX XXXX. in by rest already our of our outlook our to continue compared guidance earlier in We demonstrated growth quarter continued software as should in took line top the and success legacy XX% segments, as -- the assumes have and gateway On we first allow margins the during sorry, coupled I'm of updating already conversational the the CCaaS, Niran. Niran continued measures market outlook, XXXX of

few business areas. higher, previously, a CCaaS XX% X.X% low our in business of level discussed business rather In million line, the core. X% year-over-year. X first to Teams terms in Microsoft quarter. reaching a grew as for Microsoft, touch I'll key continued decline to to Microsoft of year-over-year about increased close business very growth

As million, with our such, in revenues solutions of for of level Microsoft Exit Teams $XX Microsoft 'XX, Teams plans. quarter now first live consist XX% a for quarterly recurring revenue. reached line annual

XX% confident revenue that million Services represent on year. business to are Managed the the whole for in to the track goal recurring thus, in XX% just coming to And ago XX should of annual thus achieve nearly We ease quarters. model quarter. compared impact we XX Live live now are year million of shift the achieving revenue our Microsoft of we Teams for to of Teams standard that recurring believe

value We for registered perspective, total experienced have time in services, XX% geo growth. EMEA live first a while also grew which From growth course, enjoyed the North year-over-year. steady multiple above in modest growth bookings America of contract

robust the greater opportunities, Microsoft or business. our optimistic in for our remain growth growth about we the Given potential pipeline long-term

hub Voca of can Teams this, the potential new they growing voice-related connectivity, based CIC Among source components on for of clear include In sense of business addition to application. multiyear revenue we opportunity a fund such see as as organization. meeting a Teams recording compliance XXX the information solution as Teams capturing sharing solution for contact Insights for center Meeting and central the the across environment, solution for environment, and a SmartTAP is a

and CX to AI. Moving conversational

over center grew of to XX% by enterprise business contact continue be deployments quarter the Conversational AI activity. before, CCaaS the Pacific I've for as our regions. grew North services year-over-year. year-over-year, America AI, XX% and bookings led Asia center conversational First mentioned Voice

center these with of activity. associated of opportunities, support revenues strength a vendors platform on Staying by see XX up steady Live investment emanating solution the local the addition in fronts, resources of on to contact cross-sell the customer AI over of topic in for set highlighted Teams center leading the integration rise our Teams see into customers and base. of our CAI the we own product enterprise of and sales With all We now the we our development our experience live our significantly Voca solution, platform recent platform first from CX CX and past phone installed have months, capabilities. a contact into of CIC, omnichannel the

in thrilled us alike evidenced been starting XX are recently as that Contact the analysts CX to top experts. based industry industry by We Microsoft markets Solution the notice, awarded evaluation Teams are Center of on the by having best today,

portion, catalyst AI small overall as consumerization. percentage for future, and arising of growth from long-term CIC and growth business, revenue be of the still rest CX a our a business and the both direct a lines, recording still While of conversation overall major expect Voca small we to pull-through SmartTAP compliance pillar contribution such

business go other quickly highlights of let's Now, through conversational segments. AI

on First, Insights. Meeting

achieved and conversational making the key additions points collaboration quickly function users analysis, Meeting languages, to forms meeting UCaaS business the tools a become includes, scribing, us first can is and milestone solution the Software-as-a-Service improving indexing for to that capture, enterprise-grade and enterprises. in previous map It more Meeting operation set multi-tenant of of Just organization cloud-based more retrieve solution the European comprehensive from automation easy Insights expanding enables providing share from review and search information and company. meetings. an and the to our across mobile was In Road development true to past from key remind analyze Insights others, decisions of languages, and organization. find meetings the for information Meeting With service XXXX of all, recording a XXXX, solution, enhanced where AI technologies provides upgraded we across it solutions. to to or among capabilities, solution of decision-making a SaaS have quarter and Insights,

in contact SmartTAP ongoing services a and same in To nice platform CX, plans Microsoft I've our Meeting to for have is operator. call, growth my annual in progress CIC company on by service own of of seen up the services optimism And the growth wrap in solution branded managed about live that, AI. in panel in nice particularly like conviction the plan to through business between despite software by in the the the with Insights, services around expected U.K. the and launch made synergies As fundamentals SaaS of our unify On Microsoft driver slower company we transformation strong company. duly reserves the shares to the accounts I'd pipeline the profitability. their and other as XXXX, second expand center given to for quarter new business to year the of due or a we a our conversational their legacy that This long-term codes. we the revenue and have significant and major credit is and SmartTAP, decline, the tool start first Voca our XXXX, section move relying as to go-to-market and than to for new Teams, growth we progress our U.S. infrastructure concluded sales, record with growing supported will discussion, these enabling enterprises, call long-term XXXX, the we a for lines. see strong had quarter strategic with have ongoing the opportunities opportunities, providers recording clients two operations. And recurring adopting services for environments. in offer Growing momentum This strong and

Operator

you very much. Thank

be will you. session. a Thank [Operator now We conducting Instructions]. question-and-answer

of is question Samad Samad? Jefferies. Samana Your coming from first

Mason Marion

This is Mason on for Marion Samad.

revenues, year lower-than-expected revenue? well? lower amounts with want reduction the any for other Did gateway I or So, from as expectations revenue products $XX you start the services Of to million what full to guidance.

Shabtai Adlersberg

first million seen we've $X about decline Okay. quarter. the in Well,

we we relying will the experience year. believe XXXX, we throughout had the that Just from see not improvements on measure

in then continued decline. we the year market based assessment market, for the of and a for took million for quarter, gateway million $X million. another the And spending on slowdown left in the for ongoing taking the full $X room we muted So, our $XX

Mason Marion

been this now. could transition Understood. How start total we And reflect talking we your is an Are revenue recurring point? see then your for still? to your business about recurring several growth? big revenue years closely you've when towards growth inflection And revenue reaching more legacy more

Shabtai Adlersberg

Right.

Okay.

stats repeat CapEx me when of some let important business the I before. Teams. you most analyze mentioned So, The business to is Microsoft versus recurring try

first what I've Teams a in XX% XXXX, this Now, to recurring XX% stated of revenues, reached compared is revenues quarter just recurring year ago.

So, our CapEx expectation are that X substantially decline of, say, within the will be months, Teams meaningful. next the X, less I would

So, probably 'XX, first model. in the an view a from model XXXX, our in year of half of general, we and OpEx to CapEx the 'XX as revenues transition

expect therefore, do in we the we believe point this that quarter And a pipeline quarter, ongoing think our early 'XX, end still from towards have base suffer X will from this maybe that revenues. all. and that. be accumulated I should another I But for entering think I we'll of recurring or So, strong that safe year very of

Operator

next question Barclays. of Your MacWilliams Ryan is coming from

Pete Newton

This is Newton Ryan on MacWilliams. for Pete

and of you're right in that's demands in I'm what to Just how look versus UCaaS characterize And what those if saw you for now to into would demand? dynamics trying terms similar you seeing driven CCaaS XXXX? both,

Shabtai Adlersberg

market point was CCaaS figure trade and a I then, that think Until and still UCaaS we do shift. events somewhere and less. actually, of the I the XXXX. beginning and the was So, was Connect mean, UCaaS We out Enterprise of turning big although path, probably biggest who attends I shows such primarily as think I strong. in a see believe, taking all is growth anybody slower and industry kind think

the market. fragmented Cisco of to think and take market the more conversational XX% take CCaaS. CCaaS impact substantially UCaaS and WebEx is and see majority mainly accounts, this X opportunities and XX%, definitely Microsoft about technologies. GenAI, the comprise top the fact and interest, one maybe I player the that the AI AI We However, have due compared too, I of to UCaaS. of also And another Zoom. just Teams, you the that more substantially in is

becoming and limited. are there opportunities the narrow So, of kind

While solution. broken the fragmented CX and and substantially it's also higher, growing right, and different substantially is more industry functionalities fast, into

to technology This services and to networking cognitive ability deep our successful. technologies. will take conversational allow So, in us and creative expertise and and a and more substantially our base many experience be

for will So, for definitely, XXXX, we us, industry and put CCaaS this interesting much the our year us, more, most of where starting more is is efforts. and this

Pete Newton

And just just the Great. good. following around business, the product FY we the service revenue helpful. the the That's 'XX, then pipeline also up, very then legacy maybe and shape should of think for commentary and given about of rest looking service

Just anything you for about the products for and shape this can talk of in of terms rest of services revenue year?

Shabtai Adlersberg

of towards come Last XXXX, that from still there's the due ended on a XX%. the believe interest growing. think just always will grow, our rates. down, services the I portion So, like high to This XX% to continue will fact impact we probably heels Product year, the sales of we around XX%. also high very year, probably we'll

crossed initiating, and CCaaS, decline. history. it further Services so products in But in see product project now may new have we AI tends long-term back to So, our as any be we UCaaS, be are are important as the we in were line services where they is conversation in bookings. and essence,

is So, the shift occurring.

grow I guidance that as So, just or even first where will in beyond we are either provided we quarter. we in keep expect, the would our

Operator

[Operator Instructions].

from coming Company. is Koontz of question next Needham Our & Ryan

Ryan Koontz

business putting is I they're to to awful that providers. and exposure. be our services. accelerating traditional also I up pretty in ask growth generally service gateways, cloud, weakness providers some And wholesale want decline. to numbers service in exposure assume, in your here, their the about just Weakness due CapEx, beyond in That to an seems the weakness

So, assume on the also an you confirm? there. Can that's I business impact gateway that

Shabtai Adlersberg

what and indeed of In 'XX has and is be the playing minimal giants get see see are. therefore, industry, now. they essence, That to we safe or view very the in what Service and in cannot from beneficial. provider, hold a according growing more business the to capable play, software of that side back offering, business. to what and growth we are definitely Yes. spending hurt we and any enterprise allowing our investing their But trying

Ryan Koontz

Right.

attach there like Okay. comes to it they're through number. healthy, a this How relative accelerating read provider the to or primarily Teams, million do And on your if seat Teams really Is service Teams the to rate bit subscriber where then XX numbers their anything, for seems ads that growth continue in it new when to PSTN stay ads? deployments? relevant solutions you struggling be

Shabtai Adlersberg

Okay.

business growing Microsoft well, be about every year. a few yes, nicely, phone to millions seems Teams So

definitely enjoying growth actually trend. Microsoft services of the that. We benefit our see that therefore, yes, from attached are we business in that managed definitely live And growth. cite We business. to is When growth, XX% phone we growth in

Our now growing, is bigger deploying the of live step services a did companies project moving. just phase backlog of more enter first who growing, are a meaningful

simply believe definitely from phone We and once and Teams be co-pilot the that drive, from drive order great of telephony to because believe, GenAI calls, also meetings to benefit co-pilot others more you legacy we would brings. to on to move will co-pilot phone, in the Teams able capabilities use capabilities users from those systems get analytics phone

Teams nicely. believe we is yes, So phone growing

activity. to and it, this attached is for very see can long a I runway definitely business Our

Ryan Koontz

cases? primarily Is your use -- kind seeing? helpful. what that A of That's one, internal or the on for products use generation seeing cases of And similar seeing are kind are sort products using lot the early you and last use X contact Is What companies, for of Voca center if that Tier as are second-tier your use or quick case cases? of you Voca, this the use peers could, one are roll cases in I there? Teams. out

Shabtai Adlersberg

new with lower Voca fruit. need go a being for Indeed, to CIC obviously, entrant, we the Yes. hanging

that who number the serves in has But you yes, just a or So in seats, contact But I a that is like that in all within with means cases, they larger campus. offices. university And XX,XXX center functionalities one U.S. than that that number XX say, that contact many lower of all, center all in universities let's have huge you tens things on of to and of contact of users. the All application end is one many, of we more XXX,XXX other students. about campus, leading going in won project out internal centers serving be is variety small staff desks, can the above of have campus. XXXX, application then substantially thousands, tell This using

Voca definitely growing. need.So, that are we So, serves

We investing. said coverage where we as voice omnichannel XX% are needed. of what's top just already achieved capabilities on I've mentioned, of We

such Teams -- the is large that to base a customers yes, lot And available heavily we're solution solution other on available Microsoft for installed our Teams. very of we the fact state-of-the-art, fact more center native, contact the is the makes solutions that So Microsoft of Azure, a technology the for because not in relies deepest have than which in in substantially the gaining is Azure Microsoft preferable. level of due Azure in market, advanced

traction in we're the that gaining So, level the and solution of environment, very that space. unique we believe is in

Operator

end of comments. our over that be the now Shabtai back Well, will hand any I question-and-answer closing appears to session. for to

Shabtai Adlersberg

call we like towards CCaaS, conference enterprise call. very are you, good Thank market We our growth everyone trends and today. in who Well, we UCaaS, our forward growing, to conference day. being quarterly momentum us you much next prosperity the continued good your transitioning participation for a continued look nice business in attended the with Have Okay. future. believe the to in thank would With in today. underlying our and I and GenAI business thank operations operator.

Operator

Thank much, conclude conference. you today's does very Shabtai. This

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

AudioCodes (AUDC) 7 May 242024 Q1 Earnings call transcript