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- **Conversational AI surge**: 50% Q3 growth, 40-50% annual target, $75M ARR.
- **Strategic wins**: Tier 1 system integrator deal, APAC airport Voca CIC win.
- **Financial strength**: $4.9M non-GAAP net, 65.8% gross margin, $79.7M cash.
- **AI innovation**: Agent Insights launch, Live Hub >30% growth, Mia OP gov expansion.
- **Microsoft stabilization**: Teams Phone business flat Q3, 4% H1 growth.
- **Voice AI pricing power**: Emerging market with no legacy cost constraints.


**【CEO Summary Section】**
- Third consecutive quarter of revenue growth, with conversational AI business up 50% YoY.
- Signed landmark agreement with global Tier 1 system integrator, driving $low single-digit million recurring revenue annually.
- Live Hub ARR grew >30% sequentially, with non-GAAP gross margin improving to 65.8%.
- Projected 40-50% annual growth in conversational AI business, supported by $75M ARR (up 25% YoY).
- Microsoft Teams Phone business grew 4% YoY for first 9 months, with pipeline up 20% YoY.
- Voca CIC won major APAC airport deal, serving 12 universities with Teams-certified contact center.
- Agent Insights AI-powered contact center solution launching Q4, integrating with Microsoft Teams.

**【CFO Financial Commentary】**
- Q3 2025 revenue: $61.5M (+2.2% YoY), non-GAAP net income: $4.9M ($0.17 EPS).
- Non-GAAP gross margin: 65.8% (vs. 64.5% Q2 2025), operating expenses: $34.7M (+6.5% YoY).
- EBITDA: $6.9M (11.2% margin), cash: $79.7M, net cash from ops: $4.1M.
- 2025 full-year outlook: $244-246M revenue, $0.60-0.64 non-GAAP EPS.

**【Q&A Highlights】**
- Live platform win with Tier 1 integrator driven by Gen AI-powered voice bots and cost efficiency.
- Voice AI solutions pricing不受 legacy UCaaS market constraints, with early adopters prioritizing productivity.
- Microsoft Teams Phone business stabilizing at $400M+ market size, targeting non-UCaaS growth.
- Product revenue growth from voice AI software, offsetting legacy hardware decline.
- UCaaS market flattening but non-UCaaS growth potential in APAC/Australia.
- Mia OP winning government tenders globally, with 15 PoC projects in pipeline.


AudioCodes Ltd. (AUDC) Q3 2025 Earnings Call Transcript

- **Revenue resilience**: Q2 2025 revenue of $61.1M (+1.3% YoY) reflects stabilization in connectivity market and 6.5% growth in Microsoft Teams business.
- **AI growth engine**: Conversational AI segment on track for 40-50% 2025 growth, with Meeting Insights On-Prem (Mia OP) generating >$1M H2 revenue and 20+ PoCs.
- **Managed services strength**: Live managed services ARR at $70M (+25% YoY), with new contract bookings up 6% in Q2.
- **Tariff headwinds**: $3-4M annual cost impact expected, but no long-term impact on customer behavior observed.
- **Strategic expansion**: Cisco WebEx certification opens new opportunities, with potential for significant 2026+ revenue growth.

**【CEO Summary Section】**
- AudioCodes reported Q2 2025 revenue of $61.1 million, a 1.3% year-over-year increase, driven by stabilization in the connectivity market and growth in Microsoft Teams business.
- The company emphasized its strategic focus on AI-driven solutions, with conversational AI (CAI) expected to grow 40-50% in 2025. The launch of Meeting Insights On-Prem (Mia OP) has generated strong interest, particularly in regulated industries.
- Live managed services reached $70 million in annual recurring revenue (ARR), up 25% YoY, with new contract bookings growing 6% in Q2.
- The company is investing in AI and sales/marketing to drive pipeline growth, despite facing $3-4 million in annual tariff-related costs.

**【CFO Financial Commentary】**
- Non-GAAP net income was $4.1 million ($0.14 per diluted share), down 25% YoY due to tariff costs and weaker U.S. dollar. GAAP net income was $0.3 million ($0.01 per share).
- Services revenue accounted for 53.3% of total, growing 1.9% YoY. Deferred revenue increased to $82.7 million, reflecting strong demand for managed services.
- Cash reserves stood at $95.3 million, supporting share buybacks and dividend payments.

**【Q&A Highlights】**
- **Tariffs and Pricing**: CEO Shabtai Adlersberg stated tariffs are a temporary cost, and pricing adjustments have mitigated margin impact. No significant shift to virtual SBCs vs. physical hardware observed.
- **Microsoft Teams Growth**: 6.5% YoY growth driven by Teams Phone adoption and cross-sell of CAI solutions. Dominant market share in managed services for Teams Phone.
- **Conversational AI Momentum**: Mia OP is on track for >$1 million in H2 revenue, with 20+ PoCs and 10 production customers. Voca CIC bookings up 150% YoY, targeting 50%+ growth in 2025.
- **Cisco WebEx Expansion**: Early pipeline building in EMEA, with potential for significant revenue in 2026+ as certification efforts expand.

AudioCodes Ltd. (AUDC) Q2 2025 Earnings Call Transcript

- **Revenue Resilience**: $60.4M Q1 revenue with 10%+ growth in AI services, offsetting tariff headwinds.
- **Strategic Wins**: $67M ARR in Microsoft Teams, $5M+ Cisco Webex pipeline, 6-figure AI voicebot deal.
- **Tariff Mitigation**: $3-4M annual cost via China manufacturing exit, 30%+ price pass-through.
- **AI Growth Catalyst**: 150% YoY Live Hub ARR, 300% GenAI recap usage, 20 on-prem solution pipeline.
- **Operational Strength**: $95.7M cash, 10.3% EBITDA margin, fortress balance sheet for macro resilience.

**【CFO Financial Overview】**
- Q1 2025 Revenue: $60.4 million (0.5% YoY growth), with 54% from services.
- Geographical Split: North America (48%), EMEA (34%), APAC (14%).
- GAAP Net Income: $4 million ($0.13 EPS) vs. $2.1 million ($0.07 EPS) YoY.
- Non-GAAP Net Income: $4.7 million ($0.15 EPS) vs. $5.2 million ($0.17 EPS) YoY.
- Cash Position: $95.7 million, with $13.5 million from operating activities.
- Tariff Impact: $3-4 million annual cost burden, partially mitigated by shifting manufacturing out of China.
- Guidance Withdrawn: Due to macroeconomic uncertainty and fluid tariff rates.

**【CEO Business Highlights】**
- **Connectivity Business**: 95% of revenue, 15%+ operating margin, steady growth.
- **AI-Powered Voice Services**: 10% YoY growth, targeting 50% full-year growth.
- **Microsoft Teams Integration**: 7% YoY growth, ARR $67 million (up 26% YoY).
- **Cisco Webex Enablement**: $5M+ contract value pipeline over 3 years.
- **Conversational AI Wins**: 6-figure deal with Tier 1 financial institution, 150% YoY growth in Live Hub ARR.
- **Meeting Insights**: 100% QoQ meeting growth, 300% YoY GenAI recap usage.
- **On-Prem Solution**: 20 pipeline opportunities in regulated sectors (gov, defense, healthcare).

**【Q&A Key Takeaways】**
- **Tariff Mitigation**: Moving 80%+ manufacturing out of China by Q3 2025, targeting $3-4M annual cost vs. $10-12M without action.
- **Microsoft Ecosystem**: Operator Connect becoming dominant, direct routing declining.
- **Cisco Strategy**: Leveraging service provider relationships and brand strength to win $M+ deals.
- **AI Pricing**: Passing 30%+ of tariff costs to customers, maintaining 65%+ gross margin.


AudioCodes (AUDC)-6 May 25-2025 Q1 Earnings call transcript

- **Revenue stabilization**: 2024 down 1% vs. 11% in 2023, with services (+10.9% YoY) leading recovery. 
- **AI growth engine**: Voice.ai +30% YoY to $12M, targeting $18M in 2025 (+50%). 
- **2025 Outlook**: $246-254M revenue (+1-4%), EBITDA $34-38M. 
- **Customer momentum**: Q4 bookings +30%, CX deals up 12% QoQ, Meeting Insights PoCs +250% Q4. 
- **Efficient spending**: OpEx growth capped at 1-2%, focusing on sales/marketing to fuel growth.

**【CFO Financial Overview】**
- Q4 2024 revenue: $61.6 million (2.2% QoQ increase), full year 2024: $242.2 million (-0.9% YoY). Services revenue grew 5.4% QoQ to $34.2 million (55.6% of total). 
- Non-GAAP net income: $11.6 million ($0.37 EPS) vs. $4.9 million ($0.16 EPS) in Q3. Full year non-GAAP EPS: $0.87 vs. $0.77 prior year.
- 2025 Guidance: Revenue $246-254 million, non-GAAP EBITDA $34-38 million. 

**【CEO Business Highlights】**
- Enterprise UCaaS/CX business strong: Microsoft Teams revenue up 13% QoQ, Live Teams bookings +30% QoQ. Voice.ai revenue +30% YoY to $12 million (5% of total). 
- Services growth: Professional/managed services +23.1% YoY. Annual Recurring Revenue (ARR) $65 million (+35% YoY). 
- AI investment: 1/3 of R&D budget allocated to Voice.ai, with 2025 bookings expected to exceed $17 million (+40%+ YoY). 

**【Q&A Key Takeaways】**
- Customer optimism on Gen AI adoption driving increased bookings ($20M+ Q4 TCV). 
- CX demand surging: Brazil banking deal ($1M+), North America financial institutions adopting Live CX. 
- Meeting Insights traction: Q4 PoCs +250%, Salesforce CRM integration planned. 
- OpEx strategy: 1-2% YoY growth focused on sales/marketing, no R&D expansion despite AI focus.

AudioCodes (AUDC)-4 Feb 25-2024 Q4 Earnings call transcript

AudioCodes (AUDC)-6 Nov 24-2024 Q3 Earnings call transcript

Audiocodes (AUDC)-30 Jul 24-2024 Q2 Earnings call transcript

Audiocodes (AUDC)-7 May 24-2024 Q1 Earnings call transcript

- **Revenue resilience**: Q4 $63.6M (+3.2% QoQ), full year $244.4M (-11.2% YoY) amid macro challenges.
- **AI-driven growth**: Conversational AI up >50% YoY, Live ARR $48M (+50% YoY).
- **Profitability improvement**: Non-GAAP margin 16.9% (vs 4.9% Q1 2023), 2024 EPS guidance $1-1.15.
- **Strategic wins**: Voca CIC displaces incumbents in $1M+ deals, SBC market share 23.2%.
- **Service provider shift**: -40% YoY decline, but stabilization signals 2024 recovery.

**【CFO Financial Commentary】**
- Q4 2023 revenue: $63.6 million (+3.2% QoQ), full year: $244.4 million (-11.2% YoY). Services revenue: 48.6% of total.
- GAAP net income: $3.7M ($0.12 EPS), Non-GAAP EPS: $0.28 (+12% YoY). Cash: $106.7M.
- 2024 guidance: Revenue $252-267M (+6% mid), Non-GAAP EPS $1-1.15 (+40% mid).

**【CEO Business Highlights】**
- UCaaS growth: Microsoft Teams voice up 13% YoY, Skype for Business down 55% YoY.
- CX success: Voca CIC wins $1M+ deals, Live ARR $48M (+50% YoY).
- SBC leadership: Omdia ranks #1 with 23.2% market share.
- Service provider decline: -40% YoY, but sequential stabilization.
- Gross margin: 67.6% (Non-GAAP), up from 62.1% in Q1 2023.

**【Q&A Highlights】**
- Pipeline visibility: Strong, with Q4 bookings up 50% YoY.
- AI impact: Conversational AI driving 50%+ YoY growth, new SaaS solutions launching.
- Microsoft strategy: Teams phone adoption expected to accelerate with AI apps.
- CX momentum: 40% Q4 growth, 20%+ full year, displacing incumbents in cloud migration.
- Zoom Phone: Limited traction, focus on Microsoft ecosystem.

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