Q1 2025 AudioCodes Ltd Earnings Call
Speaker Change: Good morning and thank you for standing by. This morning's conference call will begin momentarily. Thank you once again for your patience. Today's conference call will begin shortly. Thank you once again for standing by.
Richard Aspel, British Rail Carrier
Speaker Change: Good morning once again and thank you for standing by today's conference call.
Shabtai Adlersberg, Shabtai Adlersberg, Roger Chuchen
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Shabtai Adlersberg, Shabtai Adlersberg, Roger Chuchen
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Speaker Change: Good morning everybody and welcome to the AudioCodes First Quarter 2025 earnings conference call.
Speaker Change: At this time all participants are in a listen only mode and the floor will be open for questions following the presentation.
Speaker Change: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.
Speaker Change: Please note, this conference is being recorded. I will now turn the conference over to your host, Roger Chuchen, investor relations. Roger, the floor is yours.
Roger Chuchen: Thank you, operator. I was hoping you would call today our Shabtai Adlersberg President and Chief Executive Officer and Niran Baruch by the President of Finance and Chief Financial Officer.
Speaker Change: Before we begin, I'd like to remind you that information provided during this call may contain four-looking statements relating to audio code's business outlook, future economic performance, product introductions, plans, and objectives related there too.
Speaker Change: and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters are forward-looking statements as a term is defined under US
Speaker Change: Four lucky statements are subject to various risks and uncertainties on other factors that could cause actualness results to differ materially from those stated in such statements.
Speaker Change: These risks, uncertainties, and factors include, but are not limited to, the effect of global economic conditions in general and conditions in audio codes industry and target markets in particular. Shifts in supply and demand, market acceptance of new products, and demand for existing products.
Speaker Change: The impact of competitive products and pricing on audio codes and its customers' products and markets, timely product and technology development upgrades and the ability to manage changes in market conditions as needed. Possibly need for additional financing.
Speaker Change: The ability to satisfy covenants in the company's loan agreements, possible disruptions from acquisitions. The ability of audio codes to successfully integrate the products and operations of acquired companies into audio codes business.
Speaker Change: Possible Evers Impact of the COVID-19 pandemic on our business and results of operations.
Speaker Change: The effects of the current terrorist attacks on the Hamas and the war on hostilities between Israel and Hamas and Israel and Hezbollah, as well as the possibility that this could develop into a broader regional conflict involving Israel with other parties may affect our operations and may limit our ability to produce and sell our solutions.
Any disruption in our operations?
Speaker Change: by the obligations of our personnel to perform military service as a result of current or future military actions involving Israel and other factors detailed in audio codes following with the U.S. Securities and Exchange Commission.
AudioCodes assumes no obligations to update this information.
Speaker Change: In addition, during the call, AudioCodes will refer to non-GAAP net income and net income per share. AudioCodes has provided full reconciliation of the non-GAAP net income and net income per share to net income and net income per share according to Gap in the press release that is posted on its website. Before I turn the call over to management, I'd like to remind everyone that this call is being recorded. An archive webcast will be made available on the Invest Relations section of the company's website at the conclusion of the call. With all that said, I'd like to turn the call over to Shabtai. Shabtai, please go ahead.
Shabtai Adlersberg, Shabtai Adlersberg, Roger Chuchen
Shabtai Adlersberg: Thank you Roger, good morning and good afternoon everybody. I would like to welcome all to a first
Shabtai Adlersberg: With me this morning is Niran Baruch, Chief Financial Officer and Vice President of Finance of AudioCodes. Niran was thought of by presenting a financial overview of the Corps. I would then review the business highlights and summary for the Corps and discuss trends and developments in our business and industry.
We will then turn it into the Q&A session, Niran.
Thank you, Shabtai, and hello, everyone.
Speaker Change: Before I start my formal remarks, I would like to remind everyone that in conjunction with our earnings release this morning, we will post shortly on our investor-relation and website an earning supplemental deck.
Speaker Change: On today's call, we will be referring to bold gap and non-grap financial results.
Speaker Change: The earnings press release that we issued earlier this morning contains a reconciliation of the supplemental non-gab financial information that I will be discussing on this call.
Speaker Change: Revenues for the first quarter were 60.4 million, an increase of 0.5% over the 60.1 million reported in the first quarter of last year.
Speaker Change: Services revenues for the quota were 32.6 million up 3.4% over the year ago period.
Speaker Change: Services revenues in the fifth quarter are content for 54% of total revenues.
Speaker Change: The amount of deferred revenues as of March 31, 2025 was 81.3 million compared to 80.5 million as of March 31, 2024.
Speaker Change: Web News by Geographical Regents for the Quater, where split as follows, North America 48% Emea, 34% Asia Pacific, 14% Encentral and Latin America, 4%
Speaker Change: Our top 15 customers represented an aggregate of 52% of our revenues in the first quarter of which 36% was attributed to our nine largest distributors.
Speaker Change: Gap results are as follows. Gross margin for the quarter was 64.8% compared to 64.4% in Q1 2024.
Speaker Change: Operating income for the first water was 3.6 million or 6% of revenues compared to operating in income of 3.3 million or 5.5% of revenues in Q1, 2024.
Speaker Change: Abidalf for the quarter was 4.6 million compared to Abidalf 3.8 million for Q1 2024.
Speaker Change: and net income for the quota was 4 million or 13 cents per diluted share compared to net income of 2.1 million or 7 cents per diluted share for Q1224.
non-GAAP results are as follows.
Speaker Change: Non-Gab gross margin for the quarter was 65.2% compared to 65.2% in Q1 2024.
Speaker Change: non-GAAP operating income for the first quarter was 5.4 million or 8.9 percent of revenues compared to 6.3 million or 10.5 percent of revenues in Q1 2024.
Speaker Change: non-GAAP Abida for the Quarter was 6.2 million compared to non-GAAP Abida of 6.7 million for Q1 2024.
Speaker Change: non-GAAP net income for the first quarter was 4.7 million or 15 cents per diluted chair, compared to 5.2 million or 17 cents per diluted chair in Q1224.
May Allah锢𝘹𝘵𝘩𝘢𝘯𝘨𝘩.
Speaker Change: At the end of March 2025, Keshe Quivalent, Bank Deposit, Marketing for Securities and Financial Investment, total, 95.7 million.
Speaker Change: Netcash provided by Operating Activities was 13.5 million for the first quarter of 2025.
Dayself Outstanding as of March 31st, 2025 were 107 days.
Speaker Change: During the quarter, we acquired 500,000 of our ordinary shares for a total consideration of approximately 5.2 million.
Speaker Change: In December 2024, we received court approval in Israel to purchase up to an aggregate amount of $20 million of additional ordinary shares.
Speaker Change: The Court approval also permits us to declare a dividend of any part of this amount. The approval is valid through June 14, 2025.
Speaker Change: On February 4, 2025, we declared the cash dividend of 18 cents per share, the dividend that in aggregate amount of approximately 5.5 million was paid on March 6, 2025.
Speaker Change: Regarding recent tariff headlines, we have not observed thus far any material changes to our revenues or business activity.
Speaker Change: addressing the direct cost impact from tariffs announced since the beginning of 2025.
Speaker Change: We estimate approximately $3 million additional cost burden for the full year 2025 or approximately $4 million annually on a run rate basis.
Speaker Change: Note that these estimated amounts do not consider price increase sections, we have taken across the affected product lines.
Speaker Change: Given the fluidity of the tariff situation and associated macroeconomic uncertainty, we have decided to withdraw the previously provided annual guidance.
Speaker Change: We plan to resume the practice of providing an annual outlook. Once the tariff rates are finally
I will now turn the call back over to Shabtai.
Niran Baruch: Thank you, Niran. And please to report solid first-core performance with healthy growth in key business lines, putting us on track with our long-term transformation to a cloud-voice software and services company.
Niran Baruch: Olinon, first query 2025 was fairly successful in our journey to turn the company focus to play powered voice services.
Niran Baruch: With continued good business momentum in our enterprise operation in UCAS and CX.
Niran Baruch: and the growing maturity of AI and more, specifically, Gen AI and conversational AI technologies.
Niran Baruch: We believe we are building a sound and strong voice services business, expanding power and customer base and leading towards growth and growing profitability in coming years.
Niran Baruch: What was unique and quite a new development in the core was the fact that we were successful in triggering interest of several large leading global system integrators in our conversational AI business voice services.
Niran Baruch: who now evaluate them for performance and potential deployments within their customer base.
Niran Baruch: We continue to execute on our strategy and focus mainly on two key strategic initiatives.
Niran Baruch: First one is to keep growing our connectivity business which provides roughly 95% of revenue. It is mature business providing above 15% operating margin and presents stable long-term growth.
Niran Baruch: 2nd one is the Investment and Growth in North Conversational AI Initiative the NAAP Powered Voice Services, which demonstrated strong customer interest activity in the corner.
Niran Baruch: for this sector to grow 50% for the full year is this opportunities get mature and translate into revenues and associated products get more mature and effective and then allow us to translate those opportunities into revenues.
Niran Baruch: Tatching on some of the highlights of the connectivity business from first score, on the enterprise UC and CX business,
Niran Baruch: performed according to plan and counted for 90% of revenues in the quarter, highlighted by ongoing strengths in the Microsoft business which was up 7% year over year.
Niran Baruch: Side by side with our success in the Microsoft Teams ecosystem for UCAS. I'm glad to report that we made progress in certifying our solution.
for the Cisco Web of Scoring Cloud Connect environment.
Niran Baruch: with Microsoft holding about 40% market sharing the UK's market.
Niran Baruch: and Cisco, a second strong runner-up holding about 25% market share. We believe we are expanding the potential for the connectivity business. We should start contributing in the second level of 2025. Attach more on that later on.
Niran Baruch: RCX connectivity business increased 2% year of a year in the quarter. We have seen healthy pipelines supporting continued positive outlook for 2020-25.
Niran Baruch: Our conversational AI business grew above 10% year-over-year. More impressing is the growing pipeline and rate of new wins and bookings of new opportunities which continue to grow at a very healthy rate.
Niran Baruch: Turning to performance of our services, overall services accounted for 54% of revenue and grew 3.4% year-over-year. The slow growth in services, this quarter, from 4.
Niran Baruch: in the quarter of 2024 levels is largely attributed to timing of professional services project completion.
Niran Baruch: With services, all I've managed, the year of a year grows, remains robust, up roughly 25% a year of a year, to end the quarter at 67 million, and in all the recurring revenue.
Niran Baruch: With regard to our live managed services, we expect to significantly increase the attractiveness and efficiency of our solutions.
Niran Baruch: and their deployments by completing the integration for advanced GNI-based dance voice application into the live platform in the second quarter.
Niran Baruch: Historically, our live managed solution were often sold on a siloid basis.
Niran Baruch: requiring additional manual steps to add an area of additional services. As such, once the live platform integration is completed in the second quarter, we further expect growth of this area, power service to be...
Niran Baruch: and Ernst in the second half of 2025 by impending launch of this unique
Niran Baruch: As we are not aware of other competing platforms which integrate connectivity solution for of the leading UCAS vendor such as Microsoft Teams, Cisco WebEx, Genesis and Zoom, with market leading business voice application, we believe we will gain nicely in the market with this advanced platform.
Niran Baruch: I head of the launch, we have shared our vision and provided demonstrations of the new platform to existing and prospective global citizen integrators and service provider customers.
Niran Baruch: Overwhelming positive. The benefits of adopting this all-in-one service platform are clear, offering simplicity and co-saving to our partners and improve customer experience to the end users.
Niran Baruch: We already have several four existing powder customers who are lining up to integrate our value-ed solution into their offering as soon as the next generation live platform is available.
Now to the whole issue of the race.
switching to the next.
Niran Baruch: Our next topic regarding tariff headlines, that have triggered uncertainty about global growth prospects. So that that towards that end, we have not observed any significant change in customer buying presence thus far. Customer conversation and deals continue to process usual.
Niran Baruch: On the actual impact and cost, the terrific impact in the first quarter came at about $350,000. We are closely monitoring developments in this area and have already taken steps.
Niran Baruch: to mitigate the impact of the remainder of 2025 by working to move parts of home and manufacturing out of China to other countries for which the tourists are lower. For the second quarter of the year, we estimated the tourist cost.
and Shabtai Adlersberg.
Niran Baruch: As we continue to make progress in shifting our business to software and services,
Niran Baruch: The impact from tariffs on hardware, part of our portfolio will continue to diminish.
Niran Baruch: for Perspective in the first quarter of 2025, hardware accounted for roughly 30% of revenues down from 45% in 2020, which was the first year we launched on our live-minute services.
S. presented earlier on the call by Niran
Niran Baruch: Given the fluidity of the terrestrial situation associated macroeconomic uncertainty, we have decided to withdraw the previously provided annual guidance, with plenty of resume providing an annual outlook once the terrestrial rates are finally determined.
Niran Baruch: Before turning to detailed business lines discussion, let's quickly shift to profitability metrics. Our non-gap gross margin for the quarter was 65.2 within our long-term
Niran Baruch: Performance over the year ago, Quarer. Gross margin and profitability came lower than a plant due to combination of
Niran Baruch: three factors, the impact of the new tariffs, increased investment in our Indian product development in the emerging conversation AI line, and then due to less favorable mix of products.
Niran Baruch: In the first quarter, none gap-upriting expenses rose to $34 million up from $32.9 million, and Irrigo Quarer. Irrigo.
Niran Baruch: Increasing expenses from a link to enhanced investment in a conversational AI in our expenses on marketing themselves as the focus or initiative to lead the AI power's voice of the business.
in terms of Ed Count.
Niran Baruch: We ended the quarrel with 962 employees and increased from 946 from the prior quarrel and 959 in the year ago period.
Niran Baruch: Adjusted the bidout for the first score was 6.2 million, reflecting 10.3% margin, comparing to 6.7 million or 11.2% in the first score of 2024.
Lastly, we again demonstrated...
Niran Baruch: A strong cash flow generation who is not cash from operating activities reaching 13.5 million for the core. This robust cash flow generated supports our capacity to keep investing in and expanding our business moving forward.
Niran Baruch: Now to the Microsoft environment regarding our strategic business segment, as previously noted, Microsoft teams business grew 7%.
Niran Baruch: We have also performed well on the new project's front where a total amount of greater opportunities in the Microsoft space.
Grow about 6.
Transcription by Camilla R.
Niran Baruch: A major state university with over 50 campuses discussed last quarter, we received additional orders in the first quarter, totaling over 1 million.
Niran Baruch: This amount represents the second wave of commitment of additional schools as part of the Master Agreement signed with the IT administrator. Over the coming quarters, we would expect more campuses to come on board as well as potential
Niran Baruch: Long-term, with Tim Swan users representing a small fraction of the 20 million Tim's daily active users, we're emanating to the aesthetic about the potential for ongoing penetration gains of Tim Swan voice seats.
Niran Baruch: Now to the new developments with Cisco Weathers Calling. In November 2024, Cisco has launched Cloud Connect Annabellment Program for Service Provider, similar in functionality to the Microsoft Operator Connect Accelerate Program.
Cisco is targeting significant migration from legacy-brought-of-based systems.
Niran Baruch: and other on-prem or all-centralized IP Telephony solution to Wipex Calling, which is its most advanced UCAS solution positioned to compete with Teams and Zoom.
Niran Baruch: Unlike Microsoft, Teams in Zoom Cisco is very large install base via global service providers.
according to Discussion Health.
We believe the Cisco 4Casts.
Niran Baruch: above 15 million subscribers, the subscribers migrating in 2025, 2026 period. Adlersberg was selected to be one of four enablement partners.
Niran Baruch: We estimate internally that its opportunity may contribute to total contract value for about 5 million in the next three years.
Niran Baruch: We expect to expand our success with the UK's connectivity area by offering cloud connection and development capability for Cisco WebExconing during the course of the third quarter with the expectation that sending few millions in the coming 12 months.
Niran Baruch: Now moving to VoCi Business, starting with VoCi Connect.
Niran Baruch: Quarer across all key metrics. We still have a score of revenue growth supporting our full-year target of growing 30%.
Niran Baruch: This Mason was supported by a high number of new logo wins.
Niran Baruch: in the U.S., Europe , and Asia-Pacific, and significant expansions in install base.
Niran Baruch: To that last point, our voice-eye connection solution would be natural fit for the event price. Customers as its future proofs their investment in this fancy-volving AI landscape.
Niran Baruch: The reason is that our technology enables customers to seamlessly adopt or scale various conversational
Niran Baruch: like Agent Assist, VoiceBus, etc., and then leveraging or pre-build integration to all major evolving bone framework, speech attacks and text of speech.
Wailing.
Niran Baruch: Customers can preserve their investments in what they have acquired and integrated from other codes and then move on with any new LLM or speech-to-text solution that appears in the market.
Niran Baruch: Based on these factors, while demand for agencies involved with this has already been healthy, we may be on the cost of another step functioning crazy in demand.
Niran Baruch: This core, a large 2-1 financial institute, that initially purchased a small number of sessions to support agencies use case, placed a high six-figure, follow-on order, expanding the availability of AI and Apple transcription to cover over 5,000 agents.
Niran Baruch: Importantly, we foresee further expansion of agencies and potential addition of voice.
VoiceBot use cases with this customer.
Niran Baruch: In addition to large enterprise customers, we are also seeing robust growth from smaller end customers and partners serving them, growth on by our live hub, self-service portal.
Niran Baruch: Ejecting for a score, Live Hub, Annual Recurring Urban, it grew roughly 150% of us of the year
So we're talking about continued growth all around.
Now to focus here and see.
Niran Baruch: We achieved healthy bookings in the first quarter consisting of several large strategic enterprise cost customers.
Niran Baruch: or a message of complete team-scalling and contact scenarios solution is clearly resonating in the market amidst the U.S. U.C. and C.A.X. consolidation trend. We grew nicely both on the booking site and the revenue site.
Niran Baruch: At the same time we've been able to capture the attention of several large strategic partners which has more than 15 new opportunities in its pipeline.
The number of punters does keep screwing quarter after the quarter.
Niran Baruch: One deal I would like to highlight in the query is a contract signed with a system integrator.
Niran Baruch: for replacement of their legacy IVR with our next generation conversational IVR for a T1 BPO customer.
Niran Baruch: servicing one of the larger self insurers and customers in the U.S. We want this deal against a major premium CX vendor.
Niran Baruch: Not just on the merits of our technology, but on the speed and execution of our service delivery. We successfully ported the customer to our IVR in just three weeks versus standard implementation timeline of three to four months.
Niran Baruch: This strength is coming from both other X-cells' efforts in growing contribution with global system integrals in the channel. Attentive price connect this best, March.
Niran Baruch: We held a joint session with AT&T Business, working through the T-1 system integrals, wide labeling of worker and delivering the casual business outcomes for a number of large end-practice.
Niran Baruch: To top off, we landed in the initial contract win in first quarter with the top five global business consulting firm which would pave the way for additional future engagement opportunities.
Niran Baruch: What could further fuel our momentum is the recent support of Microsoft Teams phone extensibility. Extender that leverages Azure communication services to seamlessly integrate the Teams phone using the interface for contact center. I would like to remit if not haven't highlighted it before that what could CAC was among the first to select
Niran Baruch: Microsoft Azure ACS, Architecture and Technologies, which formed the foundation for the teams
Niran Baruch: Ascended that we have co-authored these validates of vision and the knowledge of our expertise are now to best optimize it.
Dim CX Experience.
in 2025.
Niran Baruch: Now to meeting insights, first score has been another growing core for meeting insight, both suppression and product development.
Niran Baruch: Number of meetings grew close to a hundred percent core of the core. The number of proof of concepts and accounts
Niran Baruch: Group 55% quarter of the quarter with new proof of concept growing more than 30% of the previous one.
Thank you.
Niran Baruch: using Gen AI to generate unique recaps has grown almost 300 percent and keeps growing on a monthly basis as we had more sophisticated prompts to the mix.
Niran Baruch: We also launched an intelligent meeting room solution. This was launched in January . We integrated meeting eastern technology into our video conferencing systems, enabling automated meeting summaries for both in-person and remote participants.
Niran Baruch: It's a innovative solution, garnered significant customer interest at ISE in Barcelona and Enterprise Connect.
Speaker Change: Now to our new announcement, we could go up a very unique industry, I would say, in this
Solution that's meeting a sense on-prem. That product targets...
Security, Incessative Enriments. [inaudible]
Meeting you said on-premises A.I.
Speaker Change: Cloud Services, meaning the solution is completely detached from the internet and that allows full privacy and security.
Speaker Change: Just to touch on what makes this solution unique. First, it's a comprehensive centralized platform. Basically, it's a secure location.
Speaker Change: for all meeting data, ensuring easy access and retrieval. Then, it's an on-premises solution. This solution can be in some of our local servers, eliminating the need for internet connectivity or cloud services, and offering greater control and security.
We talk about customization of AI, advanced AI.
Speaker Change: combined with a built-in SLM engine that's installed locally and adversely accurates a reception, customized summaries and actionable insights tailored to the specific organization needs.
Speaker Change: Then we have our language and jargon customization, advanced editing tools, automating tough management. Curly, a very complicated, very comprehensive solution. We feel we are substantially ahead of...
Core. Right now we have close to five deployments.
Speaker Change: Functional already in Israel, sectors that would be interested in that solution include government, defense, finance, and health care, and at this stage we have a pipeline of
Close to 20 new opportunities and it's growing on a weekly basis.
Speaker Change: We just started out getting out of Israel as we mentioned, we announced the product about a week ago and now we start to go internationally initially to the US and the European markets.
Speaker Change: To wrap up in the first quarter of 2025, we continue to make solid progress in a long-term transformation to a cloud and voice services company. We've increased focus on AI power and voice services.
All in all, we made nice progress in our business.
Speaker Change: While achieving our revenue target, our growth margin and profitability came lower due to the combination of the impact of the new tariffs, increasing investment in emerging conversation on AI line, and due to a less terrible offer.
mixed products. They are operating for a position of strength.
Speaker Change: Supported by Fortress BalanceShit, a dominant connectivity franchise, and a confidential AI segment
Speaker Change: and NSS Productivity. These strengths should resonate well with better than customers in any market environment. We believe these factors position us well to navigate the potential miracle to balance over the balance of 2025.
Speaker Change: and with that I've completed my presentation and I'll move the session into the Q&A.
Thank you.
Speaker Change: The floor is now open for questions. If you wish to join the queue to ask a question at this time, please press star 1 on your telephone keypad.
Speaker Change: We do ask if listening on speakerphone this morning that you pick up your handset while asking your question to provide optimal sound quality. Once again, if you wish to ask a question at this time, please press star one on your telephone keypad. Please hold a moment while we pull for questions.
Speaker Change: And we have a question from Joshua Riley from Needham & Company. Joshua, your line is live, please go ahead.
Speaker Change: Alright, well thanks for taking my questions here. Maybe just starting off on the tariff impact.
Speaker Change: Do you plan to take proactive steps to move some of the manufacturing out of China, or do you plan to wait until you hear what the kind of maybe final tariff?
Speaker Change: rates, if that is possible to know, come out before you take the proactive action on moving manufacturing out of China, and then along with that, can you just give us a sense of how you're thinking about price increases if the pair of rates do not come down?
Speaker Change: Yes, actually, I think I've mentioned this on the call. We do plan to move actually already
Speaker Change: to move a part of our manufacturing, majority of the manufacturing out of China to other countries. Some of we do, our main manufacturer is Flexronics.
Frixionics has got.
Speaker Change: Manufacturing Plants around the world. We plan to move them into other countries in Asia Pacific and also part of the manufacturing to Israel. All in all, we plan to make these moves in the course of the next.
3-6 months.
Speaker Change: We believe that by taking these steps we will lower substantially the impact from the
Speaker Change: We know for CAA Bud and of about three to four million.
Speaker Change: Understood, got it. And then if you look at the Microsoft Ecosystems,
Speaker Change: I guess, what trends are you seeing in terms of operator connect versus direct routing and...
Speaker Change: Can you just give us a sense of how if customers choose one versus the other what your relative business opportunity is?
Speaker Change: Yeah, so generally, it's really, you need to look at the timeline, you know, as we see that route where it came first and therefore all the larger enterprises, you know, use that, you know, to connect.
Speaker Change: with the advent of Operator Connect. We see transition in the market towards Operator Connect which we believe will ultimately become
Speaker Change: and the governing way of connecting SBCs. It's a market that's growing relatively mild growth, but still, all parts of the connect will probably become the winner in that area.
Speaker Change: Got it. And then last question for me is, it's just on the Cisco Opportunity.
Speaker Change: How do you plan to, you mentioned, I think, 5 million in total contract value opportunity?
Speaker Change: for you to go after here in the next year. So how do you plan to manage to go to market dynamics for that opportunity and maybe just some more strategy around how you're going to plan to win those opportunities? Thank you.
Brian
Speaker Change: Right, well, you know, we are, you know, working in the service space for many years now. So, therefore, and we have ongoing project with them. So, and what works for us, and I've mentioned that we have
Speaker Change: You know, few competitors there. I think the brand, the vast deployment, I mean, we're working all around the world. Actually, I can tell you that as we completed certification for EMEA, I think we were facing already, I was told.
Speaker Change: You know, being in the service for other world known and brand for other things, we definitely will gain. And the fact that the other competitors are relatively smaller in size, which gives us an advantage in becoming the preferred solution provider.
Understood. Thank you.
Speaker Change: Sure. Thank you. And as a reminder, if you wish to join the Q's, ask a question at this time, you may press star one on your keypad. Once again, that'll be star one if you wish to ask a question at this time.
Speaker Change: and there are no further questions in queue at this time. I'd now like to turn the 4-Back to Management for closing remarks.
Speaker Change: Thank you, operator. I would like to thank everyone who attended our conference call today. We continue good business momentum in our enterprise operations and good underlying market growth trends.
Speaker Change: for Conversational AI in the U.S. and CX markets. We believe we are transitioning the business towards growth and growing profitability in coming years. We look forward to your participation in our next quarterly conference call. Thank you all, have a nice day.
Speaker Change: Thank you. This does conclude today's conference call. You may disconnect at this time and have a wonderful day. Thank you once again for your participation.