RDCM Radcom Ltd

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

FORM 6-K

 

Report of Foreign Private Issuer

 

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

For the month of February 2025

 

Commission File Number: 0-29452

 

RADCOM LTD.

(Translation of registrant’s name into English)

 

24 Raoul Wallenberg Street, Tel Aviv 69719, Israel

(Address of principal executive offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F  ☒       Form:40-F ☐

 

 

 

THE GAAP FINANCIAL STATEMENTS INCLUDED IN EXHIBIT 99.1 TO THIS FORM 6-K OF THE REGISTRANT ARE HEREBY INCORPORATED BY REFERENCE INTO THE REGISTRANT’S REGISTRATION STATEMENTS ON FORM S-8 (REGISTRATION STATEMENT NOS. 333-190207, 333-195465, 333-203087, 333-211628, 333-215591, 333-260997, 333-270983 AND 333-276692), AND SHALL BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FILED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

 

CONTENTS

 

This report on Form 6-K of the registrant consists of the contents above and the following document, which is attached hereto and incorporated by reference herein:

 

Exhibit 99.1

Press release, dated February 12, 2025, reporting the Registrant’s Fourth Quarter and Full Year of 2024 Results

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	RADCOM LTD.
Date: February 12, 2025	By:	/s/ Hadar Rahav
	Name:	Hadar Rahav
	Title:	Chief Financial Officer

 

Exhibit 99.1

 

 

 

FOR IMMEDIATE RELEASE

 

RADCOM Reports Record-Breaking Year with Highest-Ever Revenues and Accelerated Profit Growth

 

Poised to Achieve its Sixth Consecutive Year of Revenue Growth

 

Key 2024 Highlights

 

●

Record revenue of $61M, with over 18.2% year over year increase and a 5th consecutive year of revenue growth

 

●

Accelerated earnings of $0.43 per diluted share (GAAP) and $0.83 per diluted share (Non-GAAP)

 

●

$12.5M positive cash flow, closing the year with a record-high $94.7M in cash and short-term bank deposits

 

●

Secured a new customer: Norlys (Telia Denmark)

 

●

Strong visibility into 2025, targeting double-digit revenue growth of 12% to 15% year over year

 

TEL AVIV, Israel – February 12, 2025 − RADCOM Ltd. (Nasdaq: RDCM) announced today strong financial results and accelerated profitability for the fourth quarter and full year ended December 31, 2024.

 

Management Comments:

 

“2024 was a record-breaking year for RADCOM, driven by exceptional team execution and remarkable achievements. We exceeded the midpoint of our full-year revenue guidance, marking our fifth consecutive year of growth while significantly enhancing profitability. Earnings per share surged by over 75% on a GAAP basis, and we achieved the highest cash and short-term deposits balances in the company’s history—$94.7 million—all while remaining completely debt-free,” said Benny Eppstein, Chief Executive Officer of RADCOM.

 

Our record-breaking performance highlights the power of our cloud and Gen AI-based assurance solution that telecom operators need to improve efficiency and deliver exceptional customer experiences. We remain laser-focused on innovation, AI, and automation, continuously investing in research and development (R&D) to reinforce our leadership in 5G assurance, expand our solution portfolio, and support operators as they transition to next-generation networks.

 

As announced a month ago, following a thorough selection process, we have secured a multi-year contract with Norlys, the owner of Telia Denmark. This win underscores RADCOM’s leadership in AI-driven assurance solutions and highlights the success of our strategic investment in European sales and marketing. We have further solidified our reputation as a trusted industry leader by replacing the incumbent assurance vendor.

 

Looking ahead to 2025, I am excited to lead RADCOM and believe that the best is yet to come. We are establishing strategic partnerships with service management system vendors and other industry leaders in advanced network technologies to enhance our solutions and expand market opportunities. With strong visibility, RADCOM is well positioned to achieve its sixth consecutive year of revenue growth.”

 

Mr Eppstein concluded, “We anticipate full-year 2025 revenue growth of 12% to 15%, with a midpoint of $69.2 million—representing a 13.5% increase compared to 2024.”

 

 

Full Year 2024 Financial Highlights:

 

●

Total revenues for the full year were $61 million, a new company record, compared to $51.6 million for 2023.

 

●

GAAP net income for the full year was $7 million, or $0.43 per diluted share, compared to a GAAP net income of $3.7 million, or $0.24 per diluted share, for 2023.

 

●

Non-GAAP net income for the full year amounted to $13.5 million, or $0.83 per diluted share, compared to a non-GAAP net income of $10.2 million, or $0.67 per diluted share for the full year 2023.

 

Fourth Quarter 2024 Financial Highlights:

 

	●	Total revenues for the fourth quarter were $16.3 million, compared to $14.0 million in the fourth quarter of 2023, 16.1% year-over-year growth.

	●	GAAP net income for the fourth quarter was $2.2 million, or $0.14 per diluted share, compared to a GAAP net income of $2.6 million, or $0.17 per diluted share, for the fourth quarter of 2023. The decrease was mainly attributed to lower interest income due to decreased interest rates.

	●	Non-GAAP net income for the period was $3.8 million, or $0.23 per diluted share, compared to a non-GAAP net income of $3.8 million, or $0.25 per diluted share, for the fourth quarter of 2023.

●

As of December 31, 2024, the company had cash and cash equivalents, short-term bank deposits of $94.7 million, and no debt, ending the year with its highest cash levels.

 

Earnings Conference Call

 

As mentioned in our last press release, our conference call originally scheduled for February 12, 2025, has been rescheduled to Thursday, February 20, at 8:00 AM Eastern Time (3:00 PM Israel Standard Time). RADCOM management will discuss the results and address participants’ questions.

 

A live webcast of the presentation will be available at https://Veidan.activetrail.biz/radcomq4-2024. The webcast will be archived for 90 days following the live presentation.

 

To join the interactive call, please call one of the following numbers approximately five minutes before the call is scheduled to begin:

 

From the US (toll-free): +1-866-652-8972

 

From other locations: +972-3-9180644

 

A conference call replay will be available the same day on the Company’s investor relations website, www.radcom.com/investor-relations.

 

###

 

For all investor inquiries, please contact:

 

Investor Relations:

Miri Segal

MS-IR LLC

msegal@ms-ir.com

 

Company Contact:

Hadar Rahav

CFO

+972-77-7745062

hadar.rahav@radcom.com

 

 

About RADCOM

 

RADCOM (Nasdaq: RDCM) is the leading expert in 5G-ready cloud-native, network intelligence solutions for telecom operators transitioning to 5G. RADCOM Network Intelligence consists of RADCOM Network Visibility, RADCOM Service Assurance, and RADCOM Network Insights. The RADCOM Network Intelligence suite offers intelligent, container-based, on-demand solutions to deliver network analysis from the RAN to the core for 5G assurance. Utilizing automated and dynamic solutions with smart minimal data collection and on-demand troubleshooting, and cutting-edge techniques based on machine learning, these solutions work in harmony to provide operators with an understanding of the entire customer experience and allow them to troubleshoot network performance from a high to granular level while reducing storage costs and cloud resource utilization. For more information on how to RADCOMize your network today, please visit www.radcom.com, the content of which does not form a part of this press release.

 

Non-GAAP Information

 

Certain non-GAAP financial measures are included in this press release. These non-GAAP financial measures are provided to enhance the reader’s overall understanding of the Company’s financial performance. By excluding non-cash stock-based compensation that has been expensed in accordance with ASC Topic 718, financial (income) expenses, acquisition-related expenses, and amortization of intangible assets related to acquisitions,  the Company’s non-GAAP results provide information to both management and investors that is useful in assessing the Company’s core operating performance and in evaluating and comparing the Company’s results of operations on a consistent basis from period to period. These non-GAAP financial measures are also used by management to evaluate financial results and to plan and forecast future periods. The presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with GAAP.

 

Risks Regarding Forward-Looking Statements

 

Certain statements made herein that use words such as “estimate,” “project,” “intend,” “expect,” “‘believe,” “may,” “might,” ” potential,” “anticipate,” “plan” or similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. For example, when the Company discusses its full-year 2025 revenue guidance and growth, its cloud and Gen AI-based solutions and their suitability for network operators needs, its investment in R&D generally and in order to enhance its leadership in 5G assurance, its leadership in AI-driven assurance solutions, its belief that ‘the best is yet to come’ and its expectation that its strategic partnerships with service management systems vendors and other industry leaders will enhance its solutions and expand market opportunities, it is using forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties that could cause the actual results, performance, or achievements of the Company to be materially different from those that may be expressed or implied by such statements, including, among others, changes in general economic and business conditions and specifically, decline in demand for the Company’s products, inability to timely develop and introduce new technologies, products, and applications, loss of market share and pressure on prices resulting from competition and the effects of the war in Israel. For additional information regarding these and other risks and uncertainties associated with the Company’s business, reference is made to the Company’s reports filed from time to time with the U.S. Securities and Exchange Commission. The Company does not undertake to revise or update any forward-looking statements for any reason.

 

 

RADCOM LTD.

Consolidated Statements of Operations

Unaudited

(thousands of U.S. dollars, except share and per share data)

 

		Three months ended December 31,								Twelve months ended December 31,
		2024				2023				2024				2023
Revenues		$	16,264			$	14,010			$	61,009			$	51,600
Cost of revenues			4,137				3,435				15,746				13,773
Gross profit			12,127				10,575				45,263				37,827
Research and development, gross			4,749				4,327				18,659				19,575
Less - royalty-bearing participation			113				190				684				736
Research and development, net			4,636				4,137				17,975				18,839
Sales and marketing			4,632				3,720				17,794				14,592
General and administrative			1,549				1,297				6,407				5,058
Total operating expenses			10,817				9,154				42,176				38,489
Operating income (loss)			1,310				1,421				3,087				(662	)
Financial income, net			1,080				1,248				4,115				4,557
Income before taxes on income			2,390				2,669				7,202				3,895
Taxes on income			142				77				234				182
Net income		$	2,248			$	2,592			$	6,968			$	3,713
Basic net income per ordinary share		$	0.14			$	0.17			$	0.44			$	0.25
Diluted net income per ordinary share		$	0.14			$	0.17			$	0.43			$	0.24
Weighted average number of ordinary shares used in computing basic net income per ordinary share			15,878,186				15,291,917				15,666,457				15,098,642
Weighted average number of  ordinary shares used in computing diluted net income per ordinary share			16,612,554				15,446,177				16,155,150				15,297,947

 

 

RADCOM LTD.

Reconciliation of GAAP to Non-GAAP Financial Information

Unaudited

(thousands of U.S. dollars, except share and per share data)

 

		Three months ended December 31,								Twelve months ended December 31,
		2024				2023				2024				2023
GAAP gross profit		$	12,127			$	10,575			$	45,263			$	37,827
Stock-based compensation			91				71				381				441
Amortization of intangible assets			57				57				225				151
Non-GAAP gross profit		$	12,275			$	10,703			$	45,869			$	38,419
GAAP research and development, net		$	4,636			$	4,137			$	17,975			$	18,839
Stock-based compensation			497				424				2,047				2,690
Non-GAAP research and development, net		$	4,139			$	3,713			$	15,928			$	16,149
GAAP sales and marketing		$	4,632			$	3,720			$	17,794			$	14,592
Stock-based compensation			506				370				2,023				1,820
Amortization of intangible assets			29				29				116				77
Non-GAAP sales and marketing		$	4,097			$	3,321			$	15,655			$	12,695
GAAP general and administrative		$	1,549			$	1,297			$	6,407			$	5,058
Stock-based compensation			380				319				1,645				1,168
Acquisition related expenses			-				-				-				56
Non-GAAP general and administrative		$	1,169			$	978			$	4,762			$	3,834
GAAP total operating expenses		$	10,817			$	9,154			$	42,176			$	38,489
Stock-based compensation			1,383				1,113				5,715				5,678
Amortization of intangible assets			29				29				116				77
Acquisition related expenses			-				-				-				56
Non-GAAP total operating expenses		$	9,405			$	8,012			$	36,345			$	32,678
GAAP operating income (loss)		$	1,310			$	1,421			$	3,087			$	(662	)
Stock-based compensation			1,474				1,184				6,096				6,119
Amortization of intangible assets			86				86				341				228
Acquisition related expenses			-				-				-				56
Non-GAAP operating income		$	2,870			$	2,691			$	9,524			$	5,741

 

 

RADCOM LTD.

Reconciliation of GAAP to Non-GAAP Financial Information

Unaudited

(thousands of U.S. dollars, except share and per share data)

 

		Three months ended December 31,								Twelve months ended December 31,
		2024				2023				2024				2023
GAAP income before taxes on income		$	2,390			$	2,669			$	7,202			$	3,895
Stock-based compensation			1,474				1,184				6,096				6,119
Amortization of intangible assets			86				86				341				228
Acquisition related expenses			-				-				-				56
Financial (income) expenses			(28	)			(15	)			84				60
Non-GAAP income before taxes on income		$	3,922			$	3,924			$	13,723			$	10,358
GAAP net income		$	2,248			$	2,592			$	6,968			$	3,713
Stock-based compensation			1,474				1,184				6,096				6,119
Amortization of intangible assets			86				86				341				228
Acquisition related expenses			-				-				-				56
Financial (income) expenses			(28	)			(15	)			84				60
Non-GAAP net income		$	3,780			$	3,847			$	13,489			$	10,176
GAAP net income per diluted share		$	0.14			$	0.17			$	0.43			$	0.24
Stock-based compensation			0.09				0.08				0.38				0.43
Amortization of intangible assets			(*	)			(*	)			0.02				(*	)
Acquisition related expenses			(*	)			(*	)			(*	)			(*	)
Financial (income) expenses			(*	)			(*	)			(*	)			(*	)
Non-GAAP net income per diluted share		$	0.23			$	0.25			$	0.83			$	0.67
Weighted average number of shares used to compute diluted net income per share			16,612,554				15,446,177				16,155,150				15,297,947
(*) Less than $ 0.01

 

 

RADCOM LTD. 

Consolidated Balance Sheets 

 (thousands of U.S. dollars)

(Unaudited)

 

		As of				As of
		December 31, 2024				December 31, 2023
Current Assets
Cash and cash equivalents		$	19,243			$	10,892
Short-term bank deposits			75,429				71,273
Trade receivables, net			19,038				13,412
Inventories			1,667				246
Other accounts receivable and prepaid expenses			1,819				1,592
Total Current Assets			117,196				97,415
Non-Current Assets
Severance pay fund			2,985				3,142
Other long-term receivables			3,484				1,573
Property and equipment, net			879				798
Operating lease right-of-use assets			3,421				1,651
Goodwill and intangible assets, net			2,609				2,950
Total Non-Current Assets			13,378				10,114
Total Assets		$	130,574			$	107,529
Liabilities and Shareholders’ Equity
Current Liabilities
Trade payables		$	2,457			$	2,640
Deferred revenues and advances from customers			6,848				1,469
Employee and payroll accruals			7,175				5,400
Operating lease liabilities			966				1,062
Other liabilities and accrued expenses			10,463				9,540
Total Current Liabilities			27,909				20,111
Non-Current Liabilities
Accrued severance pay			3,868				3,728
Operating lease liabilities			2,438				561
Other liabilities and accrued expenses			683				638
Total Non-Current Liabilities			6,989				4,927
Total Liabilities		$	34,898			$	25,038
Shareholders’ Equity
Share capital		$	769			$	736
Additional paid-in capital			160,761				154,697
Accumulated other comprehensive loss			(2,910	)			(3,030	)
Accumulated deficit			(62,944	)			(69,912	)
Total Shareholders’ Equity			95,676				82,491
Total Liabilities and Shareholders’ Equity		$	130,574			$	107,529

 

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