AudioCodes (AUDC) Stock Forecast & Price Target

AudioCodes Ltd demonstrated robust financial performance with a service revenue growth of 10.9% year-over-year, now representing 56% of total revenue, reflecting a positive transition from traditional licensing to subscription models. The company reported a significant increase in annual recurring revenues (ARR), which grew to an anticipated $64-$70 million for 2024, up from $10 million in 2020, with management forecasting continued growth of 30% for 2025. Additionally, AudioCodes finished the quarter with a strong cash position of $62.4 million and successfully repurchased 634,000 shares, indicating confidence in its financial strength and future prospects.

AudioCodes Ltd reported revenue of $61.5 million, marking a year-over-year decline of 3.2%, which fell short of the consensus estimate of $61.9 million. While the company achieved a non-GAAP earnings per share (EPS) of $0.37, this figure was significantly influenced by an exceptional tax benefit for the quarter, raising concerns about the sustainability of earnings performance. Although strong subscription bookings led to a record backlog at the end of the fourth quarter, the year-over-year revenue contraction suggests underlying challenges that may negatively impact the company's financial trajectory.