AudioCodes Reported Mixed Q3 Performance

AudioCodes Ltd AUDC reported third-quarter FY21 revenue growth of 12.1% year-on-year to $63.4 million, beating the consensus of $62.5 million.
Product revenue rose 4.4% Y/Y to $38.6 million, while Services revenue grew 26.7% Y/Y to $24.8 million.
Margins: The non-GAAP gross margin expanded around 250 basis points to 69.9%. The non-GAAP operating margin contracted 230 basis points to 21.4%.
The non-GAAP EPS of $0.38 missed the consensus of $0.39.
AudioCodes generated $13 million in operating cash flow and held $184.9 million in cash and equivalents.
"In the third quarter of 2021, we saw continued momentum in our enterprise operations related to the UCaaS and Contact Center/customer experience (CX) markets, CEO Shabtai Adlersberg said.
Contributing close to 85% of our revenues in the third quarter and generating growth of above 20% year-over-year, the enterprise business provides a solid base for continued growth.
"We continue to enjoy success in expanding our Voice.ai operations where bookings grew more than 100% year-over-year for both the three and nine-month periods ended September 30, 2021. We now forecast Voice.ai bookings for 2021 to reach a level of $5M for the full year."
Price action: AUDC shares closed higher by 0.62% at $34.13 on Tuesday.

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