RDCM Earnings Prediction
The chart below shows how RDCM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RDCM sees a -2.13% change in stock price 10 days leading up to the earnings, and a -4.22% change 10 days following the report. On the earnings day itself, the stock moves by +0.85%. This data can give you a slight idea of what to expect for the next quarter's release.
RDCM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
15.82M
19.90%
6.89%
Gross Margin
74.31%
1.24%
-0.08%
Operating Margin
7.63%
181.00%
28.24%
Net Margin
14.23%
768.08%
23.42%
EPS
0.14
800.00%
27.27%
No Data Available
RDCM Earnings Analysis
Radcom Ltd. Corporation (RDCM.O) Earnings Conference Call
Positive
Quarterly Revenue Milestone: 1. Record Quarterly Revenues: RADCOM achieved record quarterly revenues of $15.8 million, reflecting a 20% growth compared to the previous year.
Non-GAAP Net Income Surge: 2. Strong Non-GAAP Net Income: The company reported a non-GAAP net income of $3.7 million for Q3 2024, representing a 55% increase from the same quarter in 2023.
Strong Non-GAAP Gross Margin: 3. High Non-GAAP Gross Margin: RADCOM's non-GAAP gross margin stood at 75% for the third quarter, indicating strong profitability and operational efficiency.
Multi-Year Contract Success: 4. Successful Multi-Year Contract: The company secured a seven-figure multi-year contract with a North American operator, enhancing its revenue pipeline and market presence.
Grant Funding Increase: 5. Increased Grant Funding: RADCOM received a grant of $182,000 from the Israel Innovation Authority, a 75% increase compared to the previous year, supporting its R&D initiatives.
Negative
Rising Operating Expenses: 1. Increased Operating Expenses: Sales and marketing expenses rose by 19% to $4 million compared to Q3 2023, indicating a significant increase in costs that may impact profitability.
R&D Expense Consistency: 2. R&D Expense Stability: Non-GAAP gross R&D expenses remained unchanged at $4.2 million from Q3 2023, suggesting a lack of investment growth in research and development despite the need for innovation.
G&A Expense Increase: 3. G&A Expense Growth: General and administrative expenses increased by $298,000 to $1.3 million compared to Q3 2023, reflecting rising overhead costs that could pressure margins.
Future Revenue Delays: 4. Dependence on Future Revenue Recognition: The new seven-figure multi-year contract will not start recognizing revenue until 2025, indicating potential revenue delays that could affect short-term financial performance.
Cash Flow Challenges: 5. Limited Cash Flow Growth: Despite a strong cash position of $90.2 million, the company faces challenges in translating revenue growth into immediate cash flow improvements, which may hinder operational flexibility.
RDCM FAQs
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RDCM Earning Call Sentiment
RADCOM Ltd. (RDCM) Q3 2024 Earnings Call Transcript
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RDCM.O
-1.69%Positive
The earnings call summary shows strong financial performance with a 20% YoY revenue increase and significant profitability growth. Raised revenue guidance and strategic investments in R&D and sales further support a positive outlook. The Q&A section highlights new opportunities from a major contract and a strong growth trajectory into 2025. Though there were some vague responses, the overall sentiment remains positive, bolstered by a robust cash position and improved margins. Given these factors, the stock price is likely to see a 2% to 8% increase.
