The stock value of AudioCodes Ltd. (NASDAQ: AUDC) increased significantly following the announcement of its financial results. In the most recent trading session, AudioCodes stock rose 14.22% to $13.90. The company disclosed its financial results for the quarter that concluded on December 31, 2023, as well as for the whole fiscal year.
Revenue for AudioCodes increased to $63.6 million in the fourth quarter of 2023 from $61.6 million in the same period the year before. However, from $275.1 million in 2022 to $244.4 million in 2023, the revenue decreased. Similarly, net income decreased to $8.8 million from $28.5 million the following year.
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Notwithstanding these difficulties, AudioCodes continued to make a significant contribution to its overall revenue in both the fourth quarter and the whole year—nearly 90%—in the enterprise market. The expansion of its Microsoft-related operations, particularly in Teams, which saw a 10% quarterly increase and a 13% yearly climb, was especially remarkable.
The business’s managed services division, AudioCodes Live, also shown strong growth; at the end of the quarter, annual recurring revenue (ARR) had increased by 50% to $48 million from the prior year. Moreover, AudioCodes identified customer experience (CX) and conversational AI (CAI) operations as significant growth pillars.
CX growth accelerated to over 40% year-over-year in the fourth quarter and reached 19% for the full year. Conversational AI bookings surged by over 50% for both the quarter and the full year. Notably, Voca CIC, its Azure-native CCaaS solution for the Teams ecosystem, secured two substantial opportunities in North America, driving growth in this segment.
Furthermore, the company’s Meeting Insights, an enterprise-grade solution for the meeting space, also witnessed solid growth. Looking ahead, AudioCodes is optimistic about its prospects, particularly in the UCaaS, CX, and Conversational AI markets.
With increased focus and investments in these areas, supported by strong Live bookings, especially in Teams, Live CX, and Voca CIC, the company believes it is on track to achieve revenue growth and improved profitability in 2024.
