AudioCodes Reports 7% Revenue Growth in Q4, Backed by Microsoft, Zoom -…

AudioCodes Ltd (NASDAQ: AUDC) reported revenue growth of 6.9% year-on-year in the fourth quarter of FY22 to $70.7 million, miss the consensus of $72.4 million.

Product revenue increased 0.8% year over year to $42.02 million, while service revenue increased 17.2% year over year to $28.64 million. The company said it sees continued momentum in AudioCodes Live’s managed services.

Margins: Non-GAAP gross margin decreased 180 basis points to 65.8% due to higher component costs.

AudioCodes generated $0.42 million in operating cash flow and had $124.3 million in cash and cash equivalents.

Dividend: The board declared a semi-annual cash dividend of $0.18 per share.

CEO Shabtai Adlersberg said, “We are seeing growing business activity in UCaaS and CX, and with the continued adoption of AI in enterprises, we believe we are well-positioned to expand our leadership in applying AI to voice applications and stronger and stronger from it.” to emerge as a competitive player.”

“The primary engine of growth during the year came from our Microsoft-related business, which grew 12% year over year for the quarter and 18% for the full year. Our microsoft corp MSFT Microsoft Teams business grew 33% for the full year. We saw continued momentum in AudioCodes Live’s managed services, which ended the year over $30 million and grew nearly 80% year over year with TCV rising to over $100 million. Service revenue grew 18% year over year and accounted for 40.3% of revenue, up from 37.7% a year earlier. Another growth vector in UCaaS is our business in the Zoom Video Communications, Inc ZM Zoom ecosystem that has grown over 50% year over year.”