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RADCOM Ltd. RDCM reported fourth-quarter 2024 non-GAAP earnings per share (EPS) of 23 cents, surpassing the Zacks Consensus Estimate by 21.1%. However, the bottom line contracted 8% year over year.
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Revenues in the quarter were a record $16.3 million, beating the Zacks Consensus Estimate by 5.6%. Total revenues jumped 16.1% year over year.
Management highlighted that the outstanding performance underscores the strength of the company’s cloud and Gen artificial intelligence (AI)-based assurance solution. The company remains deeply committed to innovation, AI and automation, continually investing in research and development (R&D) to strengthen its leadership in 5G assurance, expand its solution offerings and support operators in their transition to next-generation networks.
Radcom Ltd. Price, Consensus and EPS Surprise
Radcom Ltd. price-consensus-eps-surprise-chart | Radcom Ltd. Quote
On Jan. 15, 2025, RDCM signed a multi-year agreement with Norlys, the owner of Telia Denmark, to provide advanced network monitoring solutions. Norlys will use RADCOM ACE to oversee customer experiences across its 5G and 4G networks in Denmark.
Radcom’s Other Details
Non-GAAP net income for the quarter was $3.8 million compared with $3.9 million a year ago.
Non-GAAP operating income was $2.8 million, up 6.7% year over year. Non-GAAP operating expenses for the period were $9.4 million, up from $8 million in the prior-year period.
Cash Flow and Liquidity
As of Dec. 31, 2024, RDCM had $94.7 million in cash, cash equivalents and short-term bank deposits. The company exited the fourth quarter with a cash flow of $12.5 million. This represents RDCM’s highest-ever cash balance and short-term deposit balances while remaining completely debt-free, showcasing a solid liquidity position that enables it to reinvest in technology, acquisitions and strategic growth.
Revenue Guidance for 2025
Driven by healthy momentum, RDCM has provided revenue guidance for full-year 2025. It expects full-year 2025 revenue growth to range between 12% and 15%, with a midpoint of $69.2 million, which implies a 13.5% increase from 2024. For 2024, the company recorded revenues of $61 million, marking an 18.2% year-over-year increase and the fifth consecutive year of revenue growth and increased profitability.
RDCM’s Zacks Rank
RDCM currently carries a Zacks Rank #3 (Hold). Shares of the company have surged 51.7% in the past year compared with the Zacks Computer – Networking industry's growth of 23.5%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.