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Radcom's (RDCM) Q1 Earnings Meet Estimates, Revenues Up Y/Y

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Radcom (RDCM - Free Report) reported first-quarter 2024 non-GAAP earnings per share (EPS) of 18 cents, meeting the Zacks Consensus Estimate. The bottom line increased 50% year over year.

Revenues in the quarter totaled $14.1 million, beating the Zacks Consensus Estimate by 4.62%. Total revenues soared 17.5% year over year. This upside underscores RADCOM's continued success in expanding its market presence and driving revenue growth.

Non-GAAP net income for the quarter increased to $2.8 million from $1.8 million in the prior-year quarter. Strategic expense management with a decrease in R&D costs led to the growth.

Renewal of multi-year deal with Rakuten Mobile along with extension of contract for RADCOM ACE by a U.S. telecom operator in 2024 are tailwinds. Shares of the company have lost 3.4% in the past year versus the sub-industry’s growth of 2.9%.

Radcom Ltd. Price, Consensus and EPS Surprise Radcom Ltd. Price, Consensus and EPS Surprise

Radcom Ltd. price-consensus-eps-surprise-chart | Radcom Ltd. Quote

Other Details

Non-GAAP gross margin was 74% compared with 73% a year ago.

Non-GAAP operating income tallied $1.7 million, up 108.8% year over year. The uptick was due to solid top-line growth coupled with prudent expense management.

Non-GAAP operating expenses for the period were $8.8 million, up from $7.9 million in the prior-year period, due to a substantial investment in sales and marketing and general and administrative expenses in order to capture emerging opportunities in the 5G market.

Balance Sheet

As of Mar 31, 2024, RDCM had cash, cash equivalents and short-term bank deposits of $85.3 million and zero debt. Per RDCM, this records the highest cash level achieved by the company to date.

Outlook

For 2024, RDCM has revised the lower end of guidance. It now projects revenues in the band of $57-$60 million compared with $56-$60 million predicted earlier.

Zacks Rank

RDCM currently carries a Zacks Rank #3 (Hold). You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

BlackBerry’s (BB - Free Report) fourth-quarter fiscal 2024 adjusted earnings of 3 cents per share beat the Zacks Consensus Estimate by 200%. The bottom line improved from the prior-year quarter’s non-GAAP loss of 2 cents per share.

BB has lost 40% in the past year against the sub-industry’s growth of 33.6%. In the last quarter, it delivered an earnings surprise of 200%.

Blackbaud (BLKB - Free Report) reported first-quarter 2024 non-GAAP earnings per share of 93 cents, which surpassed the Zacks Consensus Estimate by 9.4%. The bottom line increased 29.2% year over year.

Shares of BLKB have gained 9.1% compared with the sub-industry’s growth of 33.6% in the past year. In the last quarter, it delivered an earnings surprise of 9.4%.

Cadence Design Systems (CDNS - Free Report) reported first-quarter 2024 non-GAAP earnings per share of $1.17, which beat the Zacks Consensus Estimate by 3.5%. However, it decreased 9.3% year over year.

In the past year, CDNS has gained 43.6% compared with the Zacks sub-industry’s growth of 33.6%. It currently has a long-term growth expectation of 17.8%.

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