RADCOM Delivers Strong Fourth Quarter and Record Full Year 2023 Results with Revenue Growth and Accelerated Profitability

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, 

2023

2022

2023

2022

GAAP gross profit 

$             10,575

$               8,898

$            37,827

$              33,337

Stock-based compensation

71

100

441

392

Amortization of intangible assets

57

151

Non-GAAP gross profit

$             10,703

$               8,998

$            38,419

$              33,729

 

GAAP research and development, net

$               4,137

$             5,130

$            18,839

$              20,721

Stock-based compensation

424

602

2,690

2,497

Non-GAAP research and development, net

$               3,713

$               4,528

$            16,149

$              18,224

 

GAAP sales and marketing

$               3,720

$               3,281

$              14,592

$              12,270

Stock-based compensation

370

361

1,820

1,387

Amortization of intangible assets

29

77

Non-GAAP sales and marketing

$               3,321

$               2,920

$              12,695

$              10,883

 

GAAP general and administrative

$               1,297

$               1,225

$               5,058

$                4,460

Stock-based compensation

319

283

1,169

895

Acquisition related expenses

56

Non-GAAP general and administrative

$                  978

$                  942

$              3,833

$               3,565

 

GAAP total operating expenses

$               9,154

$               9,636

$             38,489

$             37,451

Stock-based compensation

1,113

1,246

5,678

4,779

Amortization of intangible assets

29

77

Acquisition related expenses

56

Non-GAAP total operating expenses

$                8,012

$               8,390

$            32,678

$             32,672

 

GAAP operating income (loss)

$                1,421

$               (738)

$              (662)

$            (4,114)

Stock-based compensation

1,184

1,346

6,119

5,171

Amortization of intangible assets

86

228

Acquisition related expenses

56

Non-GAAP operating income

$                2,691

$                  608

$              5,741

$              1,057

Three months ended 

December 31,

Twelve months ended

December 31,

2023

2022

2023

2022

 

GAAP income (loss) before taxes on income

$                  2,669

$                    13

$             3,895

$         (2,098)

Stock-based compensation

1,184

1,346

6,119

5,171

Amortization of intangible assets

86

228

Acquisition related expenses

56

Financial (income) expenses

(15)

60

Non-GAAP income before taxes on income

$               3,924

$                1,359

$           10,358

$           3,073

 

GAAP net income (loss)

$                2,592

$                (26)

$             3,713

$         (2,257)

Stock-based compensation

1,184

1,346

6,119

5,171

Amortization of intangible assets

86

228

Acquisition related expenses

56

Financial (income) expenses

(15)

60

Non-GAAP net income

$             3,847

$             1,320

$            10,176

$            2,914

 

GAAP net income (loss) per diluted share

$              0.17

$            (0.00)

$               0.24

$           (0.16)

Stock-based compensation

0.08

0.09

0.43

0.35

Amortization of intangible assets

(*)

(*)

Acquisition related expenses

(*)

(*)

Non-GAAP net income per diluted share

$              0.25

$              0.09

$              0.67

$             0.19

Weighted average number of shares used to compute diluted net income (loss) per share

15,446,177

15,329,035

15,297,947

14,997,667

(*) Less than $ 0.01

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