AudioCodes Clocks 13% Revenue Growth In Q1 Aided By Microsoft, Zoom

AudioCodes Ltd AUDC reported first-quarter FY22 revenue growth of 12.8% year-on-year to $66.36 million, beating the consensus of $66.29 million.
Product revenue rose 4.9% Y/Y to $38.8 million, while Services revenue grew 26.2% Y/Y to $27.5 million, driven by professional services and AudioCodes Live managed services.
Margins: The non-GAAP gross margin contracted 40 basis points Q/Q to 67.2% due to higher components costs. The non-GAAP operating margin contracted 240 basis points Q/Q to 18.0%.
The non-GAAP EPS of $0.33 missed the consensus of $0.36.
AudioCodes generated $0.94 million in operating cash flow and held $144.1 million in cash and equivalents.
CEO Shabtai Adlersberg said, "Strong sales in the Unified Communications and Collaboration (UCC) business were the key driver for our continued growth in the first quarter of 2022."
The company noted revenue growth acceleration was reflected mainly in enterprise sales in the Microsoft Corp MSFT Microsoft Teams Voice and the Zoom Video Communications, Inc ZM Zoom Phone environments which grew each above 50% year-over-year."
Price Action: AUDC shares traded lower by 1.91% at $23.08 in the premarket on Monday's last check.

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