Q1 2024 RADCOM Ltd Earnings Call

May 15, 2024

Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Radcom Limited Results Conference Call for the first quarter of 2024. All participants are present in listen-only mode. Following management's formal presentation, instructions will be given for the question and answer session. For operator assistance during the conference, please press star zero. As a reminder, this conference is being recorded and will be available for replay on the company's website at www.radcom.com later today.

Ladies and gentlemen, thank you for standing by welcome to the rack Com Limited results conference call for the first quarter of 2020 for all participants.

Speaker Change: Our presence in listen only mode. Following management's formal presentation instructions will be given for the question and answer session for operator assistance. During the conference. Please press Star Zero as a reminder, this conference is being recorded and will be available for replay on the company's website at www Dot rack com dot com later today.

Operator: On the call are Hilik Ichman, Radcom's Interim CEO, and Hadar Rahav, Radcom's CFO. Please note that management has prepared a presentation for your reference that will be used during the call. If you have not downloaded it yet, you may do so through the link in the Investor section of Radcom's website at www.radcom.com slash investor dash relations.

Speaker Change: Nicole are unique each month, <unk> interim CEO and <unk> <unk> CFO. Please note that management has prepared a presentation for your reference that will be used during the call. If you have not downloaded it yet you may do so through the link in the investors section of <unk> Com's website at.

Speaker Change: Www dot rack com dot com slash Investor Dash relations before we begin I would like to review the Safe Harbor provisions forward looking statements in the conference call involve several risks and uncertainties, including but not limited to the company's statements about its momentum growth future profitability.

Operator: Before we begin, I would like to review the Safe Harbor provision. Forward-looking statements in this conference call involve several risks and uncertainties, including but not limited to the company's statements about its momentum, growth, future profitability, expected levels of gross margin, and its ability to drive the business forward in 2024 and beyond. Its full year 2024 revenue guidance, opportunities to expand sales with new logos for 5G and in the cloud and Gen AI ecosystems, its pipeline, its leadership and innovation in artificial intelligence, and as a cloud assurance vendor.

Speaker Change: <unk> expected levels of gross margin its ability to drive the business forward in 2024 and beyond.

Speaker Change: Its full year 2020 for revenue guidance opportunities to expand sale with new logos or <unk> and in the cloud and Gen. II ecosystem, it's pipeline its leadership and innovation in artificial intelligence and the cloud assurance better.

Operator: The potential benefits of its software as a service solution, the ability of Radcom ACE on Amazon Web Services to allow operators to achieve higher levels of automation and insight, future investments by operators in their networks and 5G, its expectations with respect to research and development, sales and marketing expenses, and headcount, as well as grants from the Israel Innovations Authority, and the company's expectations with respect to its relationships with Rakuten AT&T and DISH. The company does not undertake to update these forward-looking statements.

The potential benefits of its software as a service solution the ability of Broadcom Ace on Amazon Web services to allow operators to achieve higher levels of automation and insight future investments by operators and their networks and IHG as expectations with respect to research and develop.

Speaker Change: And sales and marketing expenses and head count as well as grants from the Israel Innovation authority and the company's expectation with respect to its relationships with rapid 10, AT&T and dish. The company does not undertake to update forward looking statements the full safe harbor provisions, including risks that could cause actual.

Operator: The full Safe Harbor provisions, including risks that could cause actual results to differ from these forward-looking statements, are outlined in the presentation of the company's SEC file. In this conference call, management will refer to certain non-GAAP financial measures which are provided to enhance the user's overall understanding of the company's financial performance by excluding certain non-cash stock-based compensation expenses that have been expensed in accordance with the ASC Topic 718 Financial Income Expenses, Acquisition-Related Expenses, and Amortization of Intangible Assets Related to Acquisitions.

Speaker Change: To differ from these forward looking statements are outlined in the presentation of the company's SEC filings.

Speaker Change: In this conference call management will refer to certain non-GAAP financial measures, which are provided to enhance the user's overall understanding of the company's financial performance by excluding certain noncash stock based compensation expenses that have been expensed in accordance with the ASC topic 718 financial income.

Speaker Change: Expenses acquisition related expenses and amortization of intangible assets related to acquisitions non-GAAP results provide information helpful. In assessing <unk> core operating performance in evaluating and comparing the results of operations consistently from period to period the presentation of this.

Speaker Change: All information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles investors are encouraged to review the reconciliations of GAAP to non-GAAP financial measures included in the quarter's earnings release available on our website now.

Operator: Non-GAAP results provide information helpful in assessing Radcom's core operating performance and evaluating and comparing the results of operations consistently from period to period. However, the presentation of this additional information is not meant to be considered a substitute for the corresponding financial measures prepared in accordance with generally accepted accounting principles. Investors are encouraged to review the reconciliations of GAAP to non-GAAP financial measures included in the Quarterly Earnings Release, available on our website. Now, I would like to turn over the call to Hewitt. Please go ahead.

Speaker Change: I would like to turn over the call to Healy. Please go ahead.

Hiri Kittman: Thanks, Operator. Good morning everyone, and thank you for joining us for our first quarter 2024 earnings call. My name is Hiri Kittman. Before being appointed by the board as interim CEO, I served as Radcom's Chief Operating Officer since 2020, responsible for the product development and customer success team. Before becoming COO, I served as Vice President of R&D from 2015 to 2020.

Speaker Change: Operator.

Speaker Change: Good morning, everyone and thank you for joining us for our first quarter with a 24 hour News Corp.

Speaker Change: Let me say to keep the months before being appointed by the board as interim CEO I served as <unk> Chief operating officer.

Speaker Change: I was responsible for the product development and customer success teams.

Speaker Change: Before becoming CFO.

Speaker Change: <unk> President of R&D for 2015 to 2020.

Speaker Change: Joining me this time.

Speaker Change: The product transition from software to visit organization and finally to the cloud.

Speaker Change: All the additional AI powered capabilities and information features provided to our customers as part of our solution offering I want to thank the board for trusting me to lead the business as interim CEO.

Hiri Kittman: During this time, I led the product transition from software to virtualization and finally to the cloud, including all the additional AI-powered capabilities and automation features provided to our customers as part of our solution offering. I want to thank the board for trusting me to lead the business as interim CEO. Since assuming the role, I've worked closely with the management team to ensure business continuity and that our positive momentum and profitable growth continue.

Speaker Change: Since assuming the role I'll work closely with the management team to ensure business continuity and that our positive momentum in profitable growth continue.

Hiri Kittman: The mandate is clear, and we are laser-focused on leveraging market opportunities to expense ourselves with new logos for 5G. Turning to the first quarter results, we continued our strong positive momentum for 2023 into the first quarter of 2024, with record first quarter revenue that increased by 70.5% year-over-year and 19 consecutive growth quarters. We achieved our highest ever cash levels, ending the quarter with $85.3 million.

Speaker Change: The month that this could be and we are laser focused on leveraging market opportunities to expand those services with new logos for <unk>.

Speaker Change: Turning to the first quarter results.

Speaker Change: We continued our strong positive momentum for 2023 into the first quarter of 2020 full with record first quarter revenue that includes about 75% year over year and 19 consecutive growth quarter.

Speaker Change: We achieved our highest level of cash levels ended the quarter with $85 3 million.

Speaker Change: We continued our profitability strategy and achieved positive income on the gift and a non-GAAP basis. We are then Gordon spoke is the answer to that before but we know ingo and once you construct these wonderful key strategic customer rockets on mobile.

Hiri Kittman: We continued our profitability strategy and achieved positive income on a gap and a non-gap basis. We had an encouraging start to 2024 by renewing our multi-year contract with one of our key strategic customers, Rakuten Mobile, and continue to extend our collaboration and strengthen our partnership with this innovative operator. The contract extension included advanced AR-powered analytics for its private cloud, enabling Rakuten Mobile to drive more automated network operations for its nationwide rollout.

Continue to extend our collaborations with a partnership with <unk> Corporation.

Speaker Change: The contract extension included bumps it up close analytics voice subscribers cloud, enabling rakuten mobile to drive more automated operations voice nationwide Rollouts the partnership with <unk> demonstrates our market leadership in innovation and AI automation of the Telecom network cloud and slide <unk>.

Hiri Kittman: The partnership with Rakuten demonstrates our market leadership and innovation in AI, automation, the telecom network cloud, and 5G. In addition, we announced that a U.S. telecom operator extended its contract to use Radcom 8. In this contract, the value we offer is that our solution will run on AWS as a SaaS, although it is also available on other cloud platforms.

Speaker Change: In addition, we announced that the U S telecom operator will extend its construct to use vertical base in this construct the volume <unk>.

Johan: Submission Johan on AWS as assess.

Johan: Also available on other cloud platforms.

Hiri Kittman: Deploying Radcom ACE on AWS will enable this operator to achieve a higher level of automation and gain real-time insight into the network. Operators rely on assurance to navigate a smooth transition to 5G and the cloud, and our goal is to be the leading assurance provider for this transition. Hence, we want to offer telecom operators the ability to choose whatever cloud provider or deployment model they want and use our innovative assurance technology to manage their network transformation.

Speaker Change: Julien Roch, who mace <unk> risks and they've built this operator to achieve a higher level of automation and gain rooster them insight into their tool.

Speaker Change: The operator will rely on the assurance to navigate the smooth transition to <unk> and the cloud and our goal is to be the leading assurance provider for this transition.

Speaker Change: And so we want to offer telecom operators, the ability to choose whatever cloud provider, where we're deploying it more than once and use our innovative assurance technology to win that Netflix transformation.

Hiri Kittman: SAS is a popular cloud computing offering that delivers a turnkey solution. Operators can access our cloud-based assurance software quickly and gain its benefits, as it has already been installed and configured. It also offers cost savings as operators don't need to invest in additional infrastructure.

Speaker Change: She has a pool of cloud computing offering that delivers Q submission operators can access our cloud based assurance software briefly and again its benefits as it has already been installed and configured.

Speaker Change: It also offer cost savings operator, we don't need to invest in additional infrastructure sales are more opera Tor can skip the solution usage up and down based on specific needs.

Hiri Kittman: Furthermore, operators can scale their solution usage up and down based on specific needs. OfferingSUS provides customers with flexible options that can generate more sales opportunities for us in the future. This project reinforced the importance of our strategic journey to become a leading cloud assurance vendor and offer operators flexible SaaS options for deploying assurance in the cloud, turn to our customers and sales pipe, and continue to provide innovative software enhancements and new releases to our install-based customers to help them manage their network, deliver more automation, and save operational costs. AT&T and DISH remain key strategic customers, and we believe our business will remain strong. In addition, as I noted previously, our business with Rakuten Mobile remains strong following the renewal of our multi-year contract.

Speaker Change: Offering such provides customers with flexible options that can generate more sales opportunities for us in the future.

Speaker Change: These projects reinforce the importance of our strategic journey to become a leading clouds assurance vendor and offer operators flexible options for deploying assurance in the cloud.

Speaker Change: Turning to our customers and sales pipeline.

Speaker Change: We continue to provide innovative software enhancements and new releases to our installed base customers.

Speaker Change: Management of networks to deliver multiple mission and safe operation of course, AT&T and dish remains strategic customers and we believe our business will remain strong.

Speaker Change: In addition, as I noted previously our business is work with US on mobile remains strong following the renewal of our multiyear contracts.

Hiri Kittman: Our pipeline is healthy, based on our Radcom ACE products, and includes a good mix of new and existing customers. We see significant growth potential in our pipeline and have increased our sales team to ensure we fully capitalize on the growth opportunities ahead of us. We continue to work within the 5G cloud ecosystem for private, public, and hybrid networks. For the public cloud, we offer potential customers integration with all three leading public cloud providers.

Speaker Change: The pipeline is healthy based on our welcome Asporulate Tonight.

Speaker Change: It includes a good mix of new and existing customers.

Speaker Change: We see significant growth potential in our bottom line and they have increased our sales team to ensure we fully capitalize on the growth opportunities ahead of us.

Speaker Change: We continue to work within the <unk> cloud ecosystem for private public and hybrid networks.

In the public cloud, we offer potential customers integration with all three leading public cloud providers.

Hiri Kittman: Our investments in the cloud ecosystem are bearing fruit, and we believe our integration with cloud providers will help generate additional opportunities. In a previous call, we mentioned the importance of GenAI and that all the leading public cloud providers or hyperscalers are emerging as having a pivotal role in the GenAI ecosystem.

Speaker Change: Our investment in the cloud ecosystem of Greenfields, and we believe our integration as cloud providers will help generate additional opportunities.

Speaker Change: In previous call, we mentioned the importance of Gen AI and all the leading public cloud providers or IPO schedules.

Speaker Change: US having to get people to roll in agenda ecosystem, we see an opportunity to use our unique circle centric assurance Gibson to help operators manage their network, obviously partnering with <unk> entering the telco space to facilities operate all smooth transition to the cloud.

Hiri Kittman: We see an opportunity to use our unique telco-centric session skill set to help operators manage their network as they partner with hyperscalers entering the telco space to facilitate operators' smooth transition to the cloud. Last year, we announced our position as one of the first assurance vendors to harness the power of GenAI for real-time management of 5G networks, RadcomNet. Our team continues to work on embedding GNI technology into our solutions to enable innovation that helps operators manage their networks more dynamically and efficiently through AI and automation.

Speaker Change: Last year, we announced our position as one of the first assurance vendor.

Speaker Change: Harnessed the power of journey II, so read that management of <unk> networks Russel metals.

Speaker Change: Although the team continues to work on embedding agenda technology into our solutions to enable innovation that helps operators manage their networks more dynamically and deficiencies through AI and automation.

Hiri Kittman: As part of this effort, we announced the integration of our Gen AI application with AWS. Although Gen AI is in the innovation stage, customers see our innovation and thought leadership in this space, which can be a door opener that leads to other sales opportunities. We continue to engage with Operator Global through our sales and marketing activities, including direct meetings, tender processes, and conferences.

Speaker Change: As part of this effort, we announced the integration of flow Gen AI application because AWS.

Speaker Change: All those generally are you seeing the innovation stage customers see our innovation and thought leadership in this space, which can be a door opener that leads to other sales opportunities.

Speaker Change: We continue to engage was opened with a global slow sales and marketing activities, including doug's meetings tender processes and conferences.

Hiri Kittman: Operators are continuing to invest in their networks and roll out 5G. In the current macroeconomic landscape, operators are looking for innovative solutions to help them reduce costs while seeking additional revenue due to their significant investment in 5G. In addition, operators must ensure their subscribers enjoy top quality services in this highly competitive market, a critical use case for assurance. This is an opportunity for Radcom.

Speaker Change: Operators are continuing to invest in the networks and roll out fiber.

Speaker Change: The gods microeconomic landscapes operators are looking for innovative solution. So what does that mean.

Speaker Change: This growth was seeking additional revenue do use the significant investment in <unk>. In addition operators must ensure the subscribers enjoy top quality services in these highly competitive markets. The critical use case for assurance.

Speaker Change: This is an opportunity for us.

Hiri Kittman: Operators can use our solution to ensure service quality while driving operational efficiency and generating revenue through services like private networks for enterprise customers. Radcom continues to be engaged in multiple opportunities for our innovative solution at different stages of maturity. We continue to enhance our software with additional automation, intelligence, and AI-based capabilities and integration into the cloud to add value and expand our customers' use cases. The North Star that guides our product roadmap is to make networks more intelligent and autonomous through AI-powered analytics.

Speaker Change: Operators can use those solutions to ensure service quality, while driving operational efficiencies.

Speaker Change: At generating revenue through services like private networks for enterprise customers.

Speaker Change: <unk> com continues to be engaged in multiple opportunities for our innovative solution at a different stage of maturity.

Speaker Change: We continue to enhance our software with additional automation intelligence and AI based capabilities and integration into the cloud with value and expand our customers' use cases.

I'll start with the <unk> product roadmap, we still make networks more with diligence and autonomous through AI powered analytics, we will continue innovating to help operators become more efficient and increase revenues for <unk>.

Hiri Kittman: We will continue innovating to help operators become more efficient and increase revenues for 5G. For example, we announced generative AI application support for Amazon Web Services so operators can roll out new services fast on AWS while improving operational efficiencies using Radcom ACE enhanced by generative AI.

We announce generates if AI application support for Amazon Web services, so operators can rollout new services possible in AWS, while improving operational efficiencies.

Speaker Change: Using what's called base enhanced by General <unk>.

Speaker Change: <unk> is a company we spend to use a fixed dose in the telco space, we know how to analyze that data and deliver valuable insights into the telecom operators.

Hiri Kittman: Radcom is a company with many years of expertise in the telco space. We know how to analyze data and deliver valuable insight into telecom operators. So we approach all our product innovation from this unique perspective, starting from a foundation of good data and telco domain knowledge and building GNI products on top of this solid foundation. We are leveraging our know-how to provide innovative solutions that enable operators to use natural language to tap into the wealth of data Radcom has provided, helping operators work faster and more cost-effectively.

Speaker Change: So re approach all our products innovation for this unique perspective.

Speaker Change: Starting from a foundation of a good data and technical domain knowledge, a busy agenda products on top of this solid foundation.

Speaker Change: We are leveraging go knowhow to provide innovative solutions that enable operate those.

Speaker Change: That's where our language to tap into the wealth of data Russell based businesses.

Operators work faster and more cost effectively.

Speaker Change: To summarize.

Hiri Kittman: Based on our good visibility into 2024, the overall market opportunity, and our unique market position, supporting telecom operators as they roll out 5G and optimize costs, we remain well positioned to drive the business forward in 2024. Our multi-year contract also provides a strong backlog, driving consistent results and giving us good visibility. We are confident in delivering the fifth consecutive year of revenue growth, increasing our profitability, and continuing the last four years of growth momentum.

Speaker Change: Based on our visibility into 2024 overall market opportunity and unique market position supporting telecom operators as they rollout <unk> and optimize costs.

Speaker Change: We remain well positioned to drive the business forward and towards your 24 hour remote for Ya <unk> also provides a strong backlog driving consistent results and giving us good visibility.

Speaker Change: We are confident in delivering the fifth consecutive year of revenue growth Goosing, our profitability and continuing the lost for reasonable growth momentum.

Speaker Change: These give us confidence to raise the lower end, our 2020 for revenue guidance of 57 million to $60 million.

Hiri Kittman: This gives us the confidence to raise the Lower End Hour 2024 revenue guidance from $57 million to $60 million. With that, I would like to turn the call over to Hadar Rahav, our CFO, who will discuss the financial results in detail.

Speaker Change: With that I would like to turn the call over to evolve our CFO, who will discuss the financial results in detail. Thank.

Hadar Rahav: Thank you, Chilik, and good morning, everyone. To review our financial performance, while the slides contain GAAP and non-GAAP results, I will mainly refer to non-GAAP numbers, excluding stock-based compensation, acquisition-related expenses, and demortization of intangible assets related to acquisitions. Now please turn to slide 8 for other financial highlights. First quarter revenue grew by 17.5%, reaching a new record of $14.1 million. This represents a 19th consecutive quarter of year-over-year revenue growth and an increase from $12 million in the first quarter of 2023. At the same time, we continue to manage and control our expenses while investing strategically and efficiently in increasing our investment in sales and marketing. This resulted in a non-GAAP net income of $2.8 million for the quarter.

Evolve: Thank you and good morning, everyone.

Hadar Rahav: Our gross margin on a non-GAAP basis in the first quarter of 2024 was 74%. Note that our gross margin can vary slightly from quarter to quarter depending on the revenue mix. We expect that the second quarter will remain at a similar level.

Speaker Change: Yeah.

Speaker Change: The following slides contain GAAP non-GAAP results I will refer to non-GAAP numbers.

Speaker Change: Stock based compensation acquisition related expenses and amortization of intangible assets related to acquisition.

Speaker Change: Please turn to slide eight for the financials.

Speaker Change: First quarter revenue grew by 17.5%, reaching a new record of Houghton point to $1 million.

Speaker Change: This represents the 19th consecutive quarter of year, although revenue growth and includes $12 million in the first quarter of 2023.

Speaker Change: Thank God, we continue to manage and control our expenses, while investing strategically and efficiently and increase in dollar investment in sales and marketing.

Speaker Change: non-GAAP net income.

Speaker Change: 8 million Dora for the quarter.

Low gross margin on non-GAAP basis first quarter of 2024.

Speaker Change: 74% not the type of course margin converts.

Speaker Change: So quarter to quarter, depending on <unk>.

Speaker Change: But the second quarter whatever name at the similar level.

Speaker Change: Our gross R&D expenses for the third quarter of 2024, and Amanda to basis with $4 million.

Hadar Rahav: Our gross R&D expenses for the first quarter of 2024, on an in-depth basis, were $4,000,000, a decrease of $168,000 compared to the first quarter of 2023. With the market evolving rapidly, our continued investment in research and development to extend our technological leadership within this space is vital. This is a key enabler for our future business.

Speaker Change: $168000 compared to the first quarter of 2020.

Speaker Change: With the market the rosin rapidly our continued investment in with Hudson development to extend our technological leadership within this space is that this.

Speaker Change: This is a key enabler for the future.

Speaker Change: We will continue to invest strategically and Alan Dean and maintain salmonella.

Hadar Rahav: We will continue to invest strategically in R&D and maintain similar expenses as in 2023 to enhance our Radcom-A solution, increase our 5G capabilities, expand our AI-driven insights, and seamlessly integrate our solution into the cloud. Excluding any impact from exchange rates, our R&D expenses in the next quarter will remain at a similar level with a slight increase. During the quarter, we received a grant of $209,000 from the Israel Innovation Authority, compared to $262,000 in the first quarter of last year.

Speaker Change: As in 2023 to enhance our welcome a solution increased our five jackup abilities.

Speaker Change: And other AI, driven insights and seamlessly integrate our solution into the cloud.

Speaker Change: Excluding any impact from exchange rates, although R&D expenses into next quarter doesn't mean, it's a similar level with a slight increase.

Speaker Change: During the quarter, we received a grant of $209000 from the Israel Innovation authority compared to 262000 dollar in the first quarter of last year.

Hadar Rahav: As a result, on an in-depth basis, our R&D expenses for the first quarter of 2024 were $3.8 million, compared to $4 million in the first quarter of 2023. We expect the Israel Innovation Authority grant to remain at a similar level in the second quarter.

Speaker Change: We do it on a non-GAAP basis R&D expenses for the first quarter of 2024 or 3.8 medium Dora compared to $4 million is the first quarter of 2023.

Speaker Change: We expect the Israeli innovation of <unk> plant to remain at a similar level in the second quarter.

Speaker Change: As announced in previous calls we continue to strategically investing in sales and marketing to expand our business and capture more opportunities in the <unk> market.

Hadar Rahav: As announced in previous calls, we continue to strategically invest in sales and marketing to expand our business and capture more opportunities in the 5G market. Towards the end of 2023, we made an incremental investment in sales and marketing. In the first quarter of 2024, sales and marketing expenses reached $3.8 million on an ungapped basis, an increase of $747,000 compared to the first quarter of 2023. In the following quarters, we expect a gradual increase in sales and marketing expenses to support an increase in the pipeline of opportunity.

Speaker Change: Towards the end of 2023 we made an incremental investment in sales and marketing in the first quarter of 'twenty 'twenty, four Janssen, <unk> expenses, which sweet point $8 million on a non-GAAP basis, an increase of seven avid and photo 7000 doors.

Speaker Change: Compared to the first quarter of 2023.

Speaker Change: In the following quarters, we expect a gradual increase in sales and marketing expenses to support an increase in Python.

Speaker Change: Please.

Speaker Change: G&A expenses for the first quarter of 2024, well, one 2 million on a non-GAAP basis.

Hadar Rahav: GNA expenses for the first quarter of 2024 were $1.2 million on an ungapped basis, an increase of $210,000 from the first quarter of 2023. Thanks to increased revenue and careful expense management, operating income on an end-gap basis for the first quarter of 2024 was $1.7 million, compared to $800,000 for the first quarter of 2026. Net income on an end-gap basis for the first quarter of 2024 was $2.8 million, or $0.18 per diluted share, compared to $1.8 million, or $0.12 per diluted share, for the first quarter of 2023.

Speaker Change: Increase of 210000 doors some of the first quarter of 2023.

Speaker Change: Thanks to increased revenue and careful expense management operating income on a non-GAAP basis for the first quarter of 2024 was $1 7 million compared to 800000 doors for the first quarter of 2023.

Speaker Change: Net income on a non-GAAP basis for the first quarter of 2024, we're still going to <unk> or heightened cents per diluted share compared to 1.8 million Dora <unk> cents per diluted share for the first quarter of 'twenty to 'twenty three on.

Hadar Rahav: On a gap basis, as you can see on slide 8, our net income for the first quarter of 2024 was $762,000, or $0.05 per diluted share. This compared to a net income of $621,000, or $0.04 per diluted share for the first quarter of 2023. At the end of the first quarter of 2024, our ad count was 296, the same as the previous quarter. We expect our ad count to remain similar in the second quarter.

Speaker Change: On a GAAP basis as you can see on slide eight our net income for the first quarter of 2024 with $762000.

Speaker Change: <unk> per diluted share this compared to a net income of <unk>.

Speaker Change: Andre and 21000, Dora or net income or four cents per diluted share for the first quarter of 2023.

Speaker Change: The end of the first quarter of 'twenty 'twenty four hour as comparable with 296.

Speaker Change: Same as the previous quarter, we expect our headcount to remain.

Speaker Change: In the second quarter.

Hadar Rahav: Turning to the balance sheet, as shown on slide 11, our cash, cash equivalents, and short-term bank deposits were $85.3 million as of March 31, 2024. That ends our prepared remarks. I will now turn the call back to the operator for your questions.

Speaker Change: Turning to the balance sheet as shown on slide 11, our cash cash equivalents and short term bank deposits were $85.3 million as of March 31 2024.

That ends our prepared remarks, I will now turn the call back to the auto OE till final question.

Speaker Change: Thank you ladies and gentlemen at this time, we'll begin the question and answer session. If you have a question. Please press star one if you wish to cancel your request. Please press star two if you are using speaker equipment can do lift the handset before pressing the numbers.

Operator: Thank you. Ladies and gentlemen, at this time, we will begin the question and answer session. If you have a question, please press star 1. If you wish to cancel your request, please press star 2. If you are using speaker equipment, kindly lift the handset before pressing the numbers.

Operator: Your questions will be polled in the order they are received. Please stand by while we poll for your questions. The first question is from Alex Henderson of Needham and Company; please go ahead.

Speaker Change: <unk> will be pulled in the order. They are received please standby while we poll for your questions.

The first question is from Alex Henderson of Needham and company. Please go ahead.

Speaker Change: Thanks.

Alexander Henderson: Thanks. It's a nice quarter and certainly a great start for 2024. I wanted to address the linearity implied by the large beat in one cue versus only taking the low end of the guidance up. Was the first quarter a little of a lumpy quarter in terms of a lump into the quarter, and hence we should anticipate a more moderate result in the upcoming quarters in terms of the growth rate.

Alexander Henderson: A nice quarter and Oh, it's another great start to 2000.

Alex Henderson: 24.

Alexander Henderson: I wanted to address.

Speaker Change: The linearity implied by.

Speaker Change: The large beat in <unk> versus only taking the low end of the guidance.

Speaker Change: Was the first quarter, a little a little lumpy quarter in terms of a lump into the quarter and hence we should anticipate.

Speaker Change: A more moderate.

Speaker Change: Results.

Speaker Change: In the upcoming quarters.

Speaker Change: In terms of the growth rate.

Hadar Rahav: Okay, hi Alex, thank you for your kind words. So, as you saw, we raised the lower end of our revenue guidance and updated the guidance to 57 to 60, which means that we are likely to have a higher second half of the year in terms of revenue. And if there is no change in the foreign exchange rate, we expect a similar trend on the bottom line. As announced in the previous course, we continue to be investing in sales and marketing to make sure we have great visibility and enough boots on the ground to capture more opportunities in the 5G market. So part of the revenue increase will be used for sales investment, but most of it will go down to the bottom line.

Speaker Change: Okay.

Speaker Change: Thank you for Ya Li.

Speaker Change: So it just so we raised the low end of.

Speaker Change: <unk> revenue guidance and then we updated the guidance to 57 to 60, which means that we are likely to is the highest the conduct of the ear in terms of the way venue and they if no change in the mix.

Speaker Change: Senior notes fans on the bottom line.

Speaker Change: Hi, Ed.

Speaker Change: This call is to be container would you be investing in sales and marketing.

Speaker Change: To make sure.

Speaker Change: Great.

Speaker Change: And do you know.

Speaker Change: The boots on the ground.

Speaker Change: <unk> got decent besides gene market, so nobody will.

Speaker Change: It will be useful ways.

Speaker Change: With men, but most of it will go down to the bottom line.

Hadar Rahav: I see. So, in the second quarter relative to the first quarter, it's fairly stable sequentially, I assume? Yes. Looking at the pipeline, you obviously had some nice news about Rakuten. The deal with Rakuten does sound like it's an expansion, not just a renewal. Can you talk about the size? You know, upset about all that's going on.

Speaker Change: So in.

Speaker Change: In the second quarter relative to the first quarter, it's fairly stable sequentially I assume.

Speaker Change: Yes.

Speaker Change: Yeah.

Looking at the pipeline.

Speaker Change: You, obviously had some nice.

Speaker Change: There's an rocketing.

Speaker Change: Dealing with rocket then it does sound like it's an extension.

Speaker Change: Just the renewal can you talk about the.

Speaker Change: The size.

Speaker Change: All that's going.

Speaker Change: Okay.

Speaker Change: So.

Speaker Change: Thanks Roger.

Hadar Rahav: [inaudible] Doei.

Speaker Change: Thanks.

Hadar Rahav: Can you talk about the UPS help to your larger partners, not just Rakuten, but any others that you want to mention or put together? What does the large cohort of, you know, the top tier ones look like in terms of ability to upsell N24 and, for that matter, N25?

Speaker Change: Yeah. So can you talk about the upsell to your larger partners not just rocketing.

Speaker Change: E.

Speaker Change: As well as any others that you want to mention or put together what what is the the large cohort of.

Speaker Change: The top tier one look like in terms of the ability to <unk>.

Speaker Change: Sell in 'twenty, four and for that matter into 'twenty five.

Speaker Change: So about the contract with the work with them.

Hadar Rahav: So about the contract with Rakuten, the renewal is in the same way as the previous one, but

Speaker Change: Devin.

Speaker Change: Because in the same way does the play this one but.

Hadar Rahav: It has a few opportunities for extension around AI products and services. We have, with our existing customers, different opportunities in our pipeline, and we believe that some of them will be realized in the second half of 2024.

Speaker Change: It does.

Speaker Change: A few.

Speaker Change: The opportunity for extension.

Speaker Change: Yes.

Speaker Change: And with that.

Speaker Change: Oh, yes.

We see exist with.

Speaker Change: With our existing customers the different opportunities in our pipeline.

Speaker Change: And we believe that the some of them will be executed in the second.

Speaker Change: 2024.

Speaker Change: Yeah.

Hadar Rahav: If I were to look at the pipeline, I think you said it was evenly split between both new customers and existing customers. Is that how you're expecting the incremental growth to play out? Or is it more skewed to new customers driving the upside to revenue?

Speaker Change: We're to look at the pipeline I think you said it was evenly split between.

Speaker Change: New customers.

Speaker Change: Existing customers.

Speaker Change: How youre expecting the incremental growth to play out.

Speaker Change: Or is it worse due to new customers driving the upsell.

Speaker Change: The upside to the revenue.

Hadar Rahav: No, both. Also from existing and new customers. Our pipeline is including a mix of opportunities from existing and new customers.

Speaker Change: No boats also Goldman.

Speaker Change: For me in your customer base.

Speaker Change: Our pipeline, including these included we still see opportunities for me.

Speaker Change: From a new customer.

Hadar Rahav: So is it evenly split between the two, or is there a bias towards one type versus the other? [inaudible]

Speaker Change: So evenly split between the two or.

Speaker Change: Is there a bias to one type versus the other.

Speaker Change: No.

Speaker Change: 50.

Speaker Change: Okay.

Speaker Change: Just in terms of the.

Hadar Rahav: Just in terms of new products, I think you guys have had a fair number of new technology announcements and new product announcements. Talk a little bit about whether that's something that's starting to penetrate the revenue stream.

Speaker Change: New products are.

Speaker Change: I think you guys have had a fair amount of them.

Speaker Change: New technology.

Speaker Change: Technology announcements and new product announcements can you just talk.

Speaker Change: Talk a little bit about whether that's something that's starting to metastasize into the revenue streams.

Hadar Rahav: I can talk about the technology side of this product. Actually, you know, the Gen A.I. Now is, uh... This brings to the table a new, very dramatic opportunity. I mean, technology-wise, and we are... We have actually acquired a lot of information, and our product is based on a lot of knowledge in the telecom and especially in the cellular fields, and the combination between the two of these spaces. I mean the information that we capture and analyze and save for our customers, and the understanding of a lot of information and the engagement that we have with customers in this area.

Speaker Change: I can think about the technology side of this products to them.

Speaker Change: Actually you know the the journey.

Speaker Change: He brings to the table and you.

Speaker Change: Maybe Joe <unk> opportunities.

Speaker Change: <unk> then.

Speaker Change: We are.

Speaker Change: No actually acquisitive.

Speaker Change: And.

Speaker Change: Our product is.

Speaker Change: A lot of knowledge in the telecom and especially in several of our fields.

Speaker Change: And the combination between the two for this.

Speaker Change: Spaces.

Speaker Change: The information that we capture and analyze that saved customers.

Speaker Change: The Virgin AI capabilities.

Speaker Change: And understanding a lot of information.

Speaker Change: Knowledge base.

Speaker Change: And good luck.

Speaker Change: If I could capabilities for us and.

Speaker Change: And we believe it will bring a lot of opportunity.

Speaker Change: Do you see in the future when even though.

Speaker Change: The engagement that we have with customers.

Speaker Change: Yes.

Speaker Change: Alright, I'll cede the floor. Thanks.

Alexander Henderson: All right, I'll take the floor, thanks.

Speaker Change: The next question is from June <unk> of William Blair. Please go ahead.

Operator: The next question is from Arjun Bhatia of William Blair. Please go ahead.

June <unk>: Yeah perfect. Thank you so much and.

Arjun Rohit Bhatia: Yep, perfect. Thank you so much, and very nice job on starting the year off right.

Speaker Change: Nice job.

Speaker Change: On the strong start to the year.

Speaker Change: Maybe actually.

Arjun Rohit Bhatia: Maybe actually, to continue on that last point, I like that when you think about all the new capabilities and all the innovation that you've added to the platform, obviously, you're doing a lot with AI, with analytics, etc., right? And how do you think your pricing strategy might evolve as you look at your existing customers? Obviously, this is sticky, and you want to capture the value. So talk about whether you think there will be pricing power over time and how you maybe intend to use that as well.

Speaker Change: Continue on that last point I'd like that.

Speaker Change: When you think about all the new capabilities on all the information that you've added to the platform.

Speaker Change: Obviously, youre doing a lot with with AI with with analytics et cetera rising.

Speaker Change: How do you think your pricing strategy might evolve as you look at your existing customers are sticky and you want to capture the value. So if you could talk about whether you think there is pricing power.

Speaker Change: Over time, and how you may be intend to use that as a lever.

Hadar Rahav: Okay, so if you look... No, I can generalize. Okay, Hadar, you can...

Speaker Change: Okay Phil.

Speaker Change: Okay.

Hadar Rahav: I will just refer to the SAS model. So if you look at the SAS model, for example, it's a win-win situation. On the one hand, it's a saving of cost for the operator, and the operator saves the infrastructure. And for us, for Radcom, as more operators switch to the SAS model, you know the marginal cost will decrease, and we will improve our cost margin. So this is from the financial aspect. Chirik, do you want to add anything?

Speaker Change: Okay.

Speaker Change: So if you look at the SaaS model for them too.

Speaker Change: Okay.

Speaker Change: Integration on day one.

Speaker Change: Thanks Steven.

Speaker Change: For the Illinois window, probably slowly.

Speaker Change: The infrastructure and fully ads for wide Guam is more way operator, we may switch to the SaaS model.

Speaker Change: With many.

Speaker Change: Small G&A cost will be cleaner than they were.

Speaker Change: It will improve.

Speaker Change: And of course, okay.

Speaker Change: This is from baseline in Germany and Spain.

Speaker Change: Craig do you want to anything.

Craig: No no.

Craig: Okay.

Craig:

Craig: Got it and then so.

Hadar Rahav: Okay, got it. And then, so I guess the other piece, just as you're making more sales and marketing investments. Can you just help us understand a little bit about how those are, how you're executing on those? I mean, are those mostly new sales reps that you're hiring to go after new telco accounts that you don't have? Is it pipeline conversion? You know, I assume a lot of this, I think we touched on this a little bit last quarter, that it's following the 5G ramp, and that's kind of where you're really focusing. But how is that, you know, how is execution on that front going, and where are the new reps kind of being targeted?

Craig: I guess the other piece is just as you are making.

Craig: More sales and marketing investments.

Speaker Change: Can you just help us understand.

Speaker Change: A little bit about how how those are how you're executing on those I mean is that mostly new.

Speaker Change: New sales reps that you're hiring to go after when you talk of accounts that you don't have as in.

Speaker Change: Pipeline conversion.

Speaker Change: I assume a lot of this I think we touched on this a little bit last quarter that it's following the <unk> ramp and that's kind of where youre really focusing but.

Speaker Change: How is that how it's kind of executing execution on that front.

Speaker Change: Going and where are the new reps kind of being targeted.

Speaker Change: So we are following very carefully the evolution of <unk>, primarily to play depending on and Disney and now.

Hadar Rahav: So we are following very carefully the evolution of 5G and, primarily, 5G standalone. And as we announced in our previous course, we saw that the early adopters in the market are in North America and in some advanced countries in Asia like Japan and South Korea. And there we focused on the last few years. In the last year, we started to see that more work could start to progress, mainly in Europe, and you know that Europe is more spread out; there are more operators in small countries, so we want to have enough coverage and to make sure we have enough boots on the ground, as I say. Therefore, we expanded our investment in sales and marketing, and we started a team in order to make sure that we captured more and more opportunities and increased our market share.

Private school and it's still a bit today only adopted in the market.

Speaker Change: Got it.

Speaker Change: In the bank.

Speaker Change: Countries like.

Speaker Change: Japan, and South Korea, and they'll be thoughtful.

Speaker Change: Yes.

Speaker Change: Yeah.

We started to see that.

Speaker Change: <unk> more weight than it does the doctor.

Speaker Change: Paul go ahead.

Speaker Change: <unk> will work with Norway.

Bill: All right Bill.

Speaker Change: A.

Speaker Change: One pathway.

Speaker Change: He wants to add we know Cabo urge them to make sure they know.

Speaker Change: And therefore the expanded.

Speaker Change: Investments in the sales and marketing.

Speaker Change: Hey, Lisa.

Speaker Change: In order to make sure that maybe kept you away more and more opportunities.

Speaker Change: And again, we see a little market share.

Hadar Rahav: You may see this increase; this increase is already happening...

Speaker Change: Yeah.

Speaker Change: <unk>.

Speaker Change: The increase.

Speaker Change: Increase in Delaware.

Hadar Rahav: These have been reflected in the results of the first quarter, and we may see an additional increase, a gradual increase, in the second half of the year.

Speaker Change: The results of the third quartile.

Speaker Change: They will need an additional increase.

Speaker Change: Glad you're adding.

Speaker Change: Thank you.

Arjun Rohit Bhatia: Does that answer your question, Arjun? Yes, it does.

Speaker Change: Does that.

Speaker Change: And so your question again.

Speaker Change: Yes, yes very helpful. Thank you Youre welcome.

Hadar Rahav: Yep, yes, very helpful. Thank you. You're welcome.

Speaker Change: The next question is from Jeff Meyers of Cobia capital. Please go ahead.

Operator: The next question is from Jeff Myers of Cobia Capital. Please go ahead.

Jeff Meyers: Thanks, guys congratulations on a good start to the year.

Jeff Myers: Thanks, guys. Congratulations on a good start to the year. I just wanted to ask about your cash position, which is over an all-time high. What are your thoughts about that? Have you thought about a share buyback?

Jeff Meyers: Just wanted to ask about your.

Jeff Meyers: <unk> cash position.

All time high.

Speaker Change: What are your thoughts about that as you thought about the share buyback.

Speaker Change: We're a tender offer or something along those lines.

Hadar Rahav: Okay, so in the last...

Speaker Change: Okay. So.

Speaker Change: In the last day.

We generated about Dave.

Speaker Change: No doubt and it Keith.

Speaker Change: Keith.

Speaker Change: <unk> position in the demo.

Speaker Change: And that allows that.

To engage and to take came up with.

Speaker Change: The COPD.

Hadar Rahav: [inaudible]

Speaker Change: The M&A transaction and we want to make sure the community in that.

Speaker Change: In addition, the sufficient level of stage.

Speaker Change: Two.

Speaker Change: Thank you.

Hadar Rahav: We want to make sure that we have enough cash and a sufficient level of cash to execute other relevant opportunities of M&A. Dividend or buyback is something that is being discussed, and the board and the company may allocate a limited level of cash for this purpose, but we don't see it as a strategic use of our cash.

Speaker Change: I do see opportunities.

Speaker Change: In mid May.

Speaker Change: David then do buyback. He is this something that is being discussed.

Speaker Change: The board and the company May allocated it limited the level of cash for this purpose, but we don't see is the key is the strategic use of they are really cash.

Speaker Change: We use the other okay.

Hadar Rahav: We use our cash for stability, for increasing our market share, and the end result is that

Speaker Change: <unk> always stability probably.

Speaker Change: Malka Chief market, Joe excuse me.

Speaker Change: And we.

Speaker Change: We want to maintain a sufficient level to engaging to make.

Speaker Change: Now do an M&A transaction.

Speaker Change: Understood I mean, I think you guys. It seems like you have enough cash to do all three things to maintain stability do buyback and any acquisitions you might look at.

Jeff Myers: Understandable. I mean, I think you guys have enough cash to do all three things to maintain stability, do a buyback, and any acquisitions you might look at.

Hadar Rahav: But congratulations again. Thank you. You're welcome.

Speaker Change: But congratulations you guys. Thank you.

Hadar Rahav: You're welcome. Thank you.

Speaker Change: Youre welcome. Thank you.

Speaker Change #100: Got it.

Operator: The next question is a follow-up question from Alex Henderson of Needham & Company. Please go ahead.

Speaker Change #101: The next question is a follow up question from Alex Henderson of Needham <unk> Company. Please go ahead.

Speaker Change #102: Thanks So.

Alexander Henderson: Thanks. So, listening to virtually every person who sells into the telecom space, it seems pretty clear that most of the telecom industry is under duress and cutting back on its budgets and spending. There have clearly been some challenges around the 5G core in terms of delivering a true multi-vendor modern API-driven, microservice-based architecture. And so when I talk to virtually every other company in the category, they tell me that, you know, we're kind of in telecom winter here and that the pace of adoption of 5G is going to be slower than originally expected with challenges around delivering some of the advanced architecture, new features like network slicing and the like that were intended to monetize the 5G, you know, investments.

Speaker Change #103: Listening to virtually every.

Speaker Change #104: Person, who sells into the telecom space.

Speaker Change #105: It seems pretty clear that most of the telecom industry is under duress and cutting back on their budgets and spending.

Speaker Change #106: There's clearly been some challenges around the five G core.

Speaker Change #106: In terms of delivering.

Speaker Change #106: Hey.

Speaker Change #106: True multi vendor modern.

Speaker Change #106: API driven micro service based architecture.

Speaker Change #106: And so when I talk to virtually every other company in the category, they're telling me that we're kind of in telecom winter here.

Speaker Change #106: And that the pace of adoption of <unk> is going to be slower than.

Speaker Change #106: Than originally expected with challenges around delivering some of the advanced architecture.

Speaker Change #106: New.

Speaker Change #106: Features like network slicing.

Speaker Change #106: I like that were intended to monetize the <unk> S.

Speaker Change #106: You know our investments so.

Alexander Henderson: So, yeah, I think it was obvious that AT&T had tried to go down the path of multi-vendor and ended up cutting out Nokia and going with Ericsson. So how does all of that affect you? Are you negatively impacted by it, or are you, alternatively, and this is the right answer, the answer to the problem and actually amplified by those issues because you're the solution to get them to the next plateau?

Speaker Change #107: Yeah, I think it was obvious that eighth.

Speaker Change #107: T N T had tried to go down the path of multi vendor and ended up with.

Speaker Change #107: Cutting out Nokia going with there and so how does all of that.

Speaker Change #108: Two are you negatively impacted by it or are you Alternatively, and I think it's the right answer.

Speaker Change #108: The answer to the problem.

Speaker Change #108: Actually amplified by.

Speaker Change #108: Those issues are because you're the solution to get them to the next.

Speaker Change #108: The next plateau.

Speaker Change #108: Okay.

Hadar Rahav: Yeah, exactly. I think, you know, in order to understand all the 5G evolution in the right context, you know, that all the technology transitions are derived from, you know, some valid and strong businesses. So actually, 5G, I think is the only way for a transition to modern technology, software-based and cloud-based networks for telecom. So, from what I see, and we saw that...

Speaker Change #109: Yeah exactly.

Speaker Change #109: In order to understand.

One of the <unk> evolution.

Speaker Change #110: Alright, thanks context.

Speaker Change #110: Now with all the technology transition derived from most of them have already strong businesses.

Speaker Change #111: So akshay <unk>.

Speaker Change #111: The only.

Speaker Change #111: Wasteful transitioned to more than a.

Speaker Change #111: Software based and cloud philosophy, that's all.

Speaker Change #111: For the telecom.

Speaker Change #111: So from what I.

Speaker Change #111: And we saw that.

Hadar Rahav: The telecom is keeping going on the autonomous journey, and I think that the train has already left the station. I know that there are some difficulties, but again, we are in the best position in this space. And we have a lot of things to bring to the table to help them with this journey, with assurance, and even with new..., new aspects. So I think that we are in a good position for the 5G transition and the autonomous network transition. I think it's all coming together, and I don't see any way that it will not happen eventually. Thank you. Do you have more questions about it?

Speaker Change #111: The telecom is.

Speaker Change #111: You should keep going to the what was the autonomous Germany.

Speaker Change #111: Thanks.

Speaker Change #111: <unk>.

Speaker Change #112: Already left the station I know that there is some difficulties, but again we are in the best.

Speaker Change #112: <unk> in this space.

Speaker Change #112: And we have a lot of.

To bring to the table to help them.

Speaker Change #112: This journey.

Speaker Change #112: Sure.

And even with the new.

Speaker Change #112: You you aspects.

Speaker Change #112: So.

Speaker Change #112: So I think that we always have the position.

Speaker Change #112: And on this.

Speaker Change #113: If I could just transition.

Speaker Change #113: Most natural position if it gets going together and I don't see any way to determine not to happen.

Speaker Change #113: Eventually.

Speaker Change #114: Thank you.

Speaker Change #115: No question about it.

Alexander Henderson: and many more. There's clearly a problem, right? I mean, I don't think there's any issue that anybody believes that the 5G core is working as expected. And AT&T was kind of at the center of that with the decision to go multi-vendor to standardize on Ericsson. So given the observation that this problem is Radcom products, the key to solving those problems, and so instead of slowing investment, they're actually accelerating investment with you. Yeah, I think it's true. I think that...

Well.

Speaker Change #115: There is clearly a problem right.

Speaker Change #116: I don't think there's any issue that anybody believes that the <unk> is working as expected.

Speaker Change #116: AT&T was kind of at the center of that.

Speaker Change #116: The decision to go multi vendor to standardize on Ericsson so.

Speaker Change #116: Given the observation that this is a problem.

Speaker Change #116: Is the bracket.

Speaker Change #116: Actually it's the.

Speaker Change #116: Broadcom products.

Speaker Change #116: The key to solving those problems.

Speaker Change #116: And so instead of <unk>.

Speaker Change #116: Flowing investment are they're actually accelerating investment with you.

Speaker Change #117: Yes, that's true.

Hadar Rahav: Yes, it's true. I think that, you know, the fact that we are dealing with this space, with all the 5G and cloud-native transitions, we bring the platform that customers rely on during these transitions.

Speaker Change #117: Yeah.

The fact that we are dealing with this space.

Speaker Change #117: <unk> cloud native transitions.

Speaker Change #117: Transitions and we.

Speaker Change #117: You bring to the platform that customers are relying on <unk>.

Speaker Change #117: <unk>.

Speaker Change #117: No.

Hadar Rahav: So it's put us in a good position, we saw that, and with all the customers that we are working with around this 5G transition. The newcomers, it's very significant that we are.., that they are relying on our technology because, you know, they reduce costs by... Reducing people and.., and we are in the best position, because with our platform, you can manage your network more efficiently and more efficiently. You know, scalable minerals, so, yeah. I think it's very helpful, you know, to work with us in this area.

Speaker Change #117: With us.

Speaker Change #117: The position we saw it in.

Speaker Change #117: With all the customers that we are walking around.

Speaker Change #117: Around all of this transition.

Speaker Change #117: Transition.

Speaker Change #117: It's very significant.

Speaker Change #117: We are.

Speaker Change #118: But they are.

Speaker Change #118: Relying on our technology.

Speaker Change #118: Because they reduce.

Speaker Change #118: And of course buy.

Speaker Change #119: Could you just people and.

Speaker Change #119: We are in the best position.

Because we are with.

Speaker Change #119: With our platform you can manage your network more efficiently and Lora.

Speaker Change #119: Scalable minnow so.

Speaker Change #119: Yes.

Speaker Change #120: That's very helpful.

Speaker Change #121: You don't have to work with us on this.

Speaker Change #120: Sylvia.

Speaker Change #122: Okay. Thanks.

Speaker Change #122: Yes.

Speaker Change #122: Thanks.

Speaker Change #122: Yeah.

Operator: Thank you. This concludes the Radcom LTD first quarter 2024 results conference call. Thank you for your participation. You may go ahead and disconnect.

Speaker Change #123: Thank you. This concludes the rack com L. T D first quarter 2024, our results conference call. Thank you for your participation you May go ahead and disconnect.

Speaker Change #123: Yeah.