RADCOM (RDCM) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $14.8 million, up 20% year-over-year, with strong top and bottom line growth and record half-year profitability.

• Non-GAAP net income reached $3.1 million, up from $2.1 million in Q2 2023; GAAP net income was $1.7 million, up from $0.8 million.

• Over $50 million in new 5G contracts secured since the start of 2024, including several seven-digit deals across multiple geographies.

• Cash and cash equivalents reached a record $86.1 million at quarter end, with no debt.

• CEO search is in advanced stages, with a new appointment expected soon.

Financial highlights

• Q2 2024 revenue was $14.8 million, up from $12.4 million in Q2 2023 (20% YoY growth); H1 2024 revenue was $28.9 million, up from $24.4 million in H1 2023 (19% YoY growth).

• Non-GAAP net income for Q2 was $3.1 million (21% net margin); GAAP net income was $1.7 million; diluted non-GAAP EPS was $0.20, GAAP EPS was $0.11.

• Non-GAAP gross margin reached 75% in Q2 2024; GAAP gross margin was 74%.

• Non-GAAP operating profit was $2.3 million, up 170% year-over-year; GAAP operating income was $0.9 million, compared to a loss of $0.4 million.

• Total current assets stood at $106.2 million versus current liabilities of $24.0 million as of Q2 2024.

Outlook and guidance

• 2024 revenue guidance raised to $58–$61 million, up from $57–$60 million.

• Expecting linear revenue growth in the next two quarters, with profit margins to improve if forex remains stable.

• R&D and headcount expected to remain stable in Q3; gradual increase in sales and marketing expenses anticipated.

• Management expects continued growth, citing strong sales pipeline and demand, especially in North America.