AudioCodes Q2 2025: Unpacking Contradictions on Tariffs, Microsoft Growth, and AI Demand
Generated by AI AgentAinvest Earnings Call Digest
Tuesday, Jul 29, 2025 11:34 am ET1min read
AUDC--
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Aime SummaryManufacturing relocation due to tariffs, MicrosoftMSFT-- business growth, conversational AI revenue growth and traction, and customer demand for AI investments are the key contradictions discussed in AudioCodes' latest 2025Q2 earnings call.
Revenue Growth and Market Performance:
- AudioCodesAUDC-- reported revenue of $61.1 million for Q2 2025, a 1.3% increase over the previous year.
- The growth was driven by stabilization in the connectivity space and strong performance in Microsoft Teams and Webex certification.
Services Revenue and Breakdown:
- Services revenues reached $32.6 million, up 1.9% year-over-year, contributing 53.3% to total revenues.
- Live managed services showed robust year-over-year growth of 25%, with annual recurring revenues reaching $70 million.
Conversational AI and Product Development:
- Conversational AI products, such as Meeting Insights On-Prem, showed strong demand and pipeline growth, supporting the 40% to 50% segment growth outlook for 2025.
- The introduction of new products like Mia OP, geared towards regulated and security-sensitive environments, contributed to the growth.
Profitability and Cost Management:
- Non-GAAP operating income was $4.4 million, down from $7.2 million in the previous year, impacted by $1 million in tariff-related costs.
- The company is focusing on cost management and expects around $4 million in tariff-related costs for the full year.
Revenue Growth and Market Performance:
- AudioCodesAUDC-- reported revenue of $61.1 million for Q2 2025, a 1.3% increase over the previous year.
- The growth was driven by stabilization in the connectivity space and strong performance in Microsoft Teams and Webex certification.
Services Revenue and Breakdown:
- Services revenues reached $32.6 million, up 1.9% year-over-year, contributing 53.3% to total revenues.
- Live managed services showed robust year-over-year growth of 25%, with annual recurring revenues reaching $70 million.
Conversational AI and Product Development:
- Conversational AI products, such as Meeting Insights On-Prem, showed strong demand and pipeline growth, supporting the 40% to 50% segment growth outlook for 2025.
- The introduction of new products like Mia OP, geared towards regulated and security-sensitive environments, contributed to the growth.
Profitability and Cost Management:
- Non-GAAP operating income was $4.4 million, down from $7.2 million in the previous year, impacted by $1 million in tariff-related costs.
- The company is focusing on cost management and expects around $4 million in tariff-related costs for the full year.
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