Release Date: February 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you help us understand what is driving your confidence for improved top line growth in 2025 and beyond? Are customers more optimistic about their spend in 2025? Or is this being driven by AudioCodes' AI opportunity? A: We have seen a pickup in the fourth quarter in new projects and bookings, with a record backlog of total contract value signed for more than $20 million. The advent of Gen AI and Copilot technology is expected to drive more enterprises to adopt AI, leading to increased deployments of Microsoft Teams phone in the market.
Q: How did CCaaS demand fare compared to 3Q, and are you seeing increased attention from buyers on voice AI? A: We are substantially increasing the capacity of our Live CX services, addressing a market gap created by the move to cloud. We have identified increased interest in AI applications for contact center recordings, which allows for better analysis and insights from calls.
Q: What kind of trend are you seeing relative to operator voice connections into Teams? Are you seeing a trend over toward this new Operator Connect capability or still a lot of direct routing? A: There is a shift towards using Operator Connect over direct routing, particularly among smaller organizations. However, we have not seen a significant increase in usage in the market yet.
Q: Can you talk about the differentiation between AudioCodes Meeting Insights for Zoom Meetings and Zoom's in-house AI companion? A: Meeting Insights is designed to be UC-agnostic, allowing it to integrate sessions from various platforms like Microsoft Teams, Cisco WebEx, Zoom, and Google Meet. This centralized solution is tailored for large enterprises with complex requirements, offering more extensive and detailed solutions compared to Zoom's AI companion.
Q: Can you help us think about the revenue mix for next year and the transition to more recurring revenue? A: In 2024, we saw stabilization in the decline of legacy business, and we expect this trend to continue in 2025. We anticipate increased use of services and growth in Voice.ai revenues, targeting a 50% increase. The combination of stabilizing legacy business and emerging Voice.ai solutions positions us well for growth in 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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