Q3 2025 AudioCodes Ltd Earnings Call
Greetings and welcome to the audio codes. Third quarter 2025 earnings conference call. At this time, all participants are on a listen-only mode and the question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad and please note this conference is being recorded.
I will now turn the conference over to your host Mr. Rodger Chu Chen, vice president of investor relations sir. The floor is yours. Thank you. Operator hosting a call today. Are shaped by alisberg President and chief executive officer and Nar, Vice, President of Finance and Chief Financial Officer. Before we begin, I'd like to remind you that the information provided during this call, may contain 4 looking statements relating to audio codes, business Outlook feature, economic performance product, introductions plans and objectives related there too. And statements concerning assumptions made or expectations as to any future events conditions, performance or other matters or forward-looking statements, as the term is defined under US Federal Securities Law. For looking statements are subject to various risks, uncertainties and other factors that could cause actual results of different materially from those state in such statements. These risks uncertainties and factors include but are not limited to the following. The effect of global economic conditions in general and conditions in audio codes industry and target market.
It's in particular, including governmental undertaking to address such conditions, shifts in supply and demand Market acceptance of new products and the demand for existing products, the impact of competitive products, and pricing on audio codes and its customers products. And markets timely product and Technology development. Upgrades the event of uh, artificial intelligence and the ability to manage changes in market conditions and evolving regulatory regimes as applicable possible need for additional financing, the ability to satisfy covenants and audio codes financing agreements. Possible impacts in disruptions from audio codes Acquisitions, including the ability of audio codes to successfully integrate the products and operations of acquired companies into audio codes, business possible adverse, impacts attributable to any pandemic or other Public Health crisis on our business and results of operations, the effects of the current and any future Hospital hostilities involving Israel including in the regions in which we or our counterparties operate, which may affect our operations and may limit our ability to produce and
Sell our Solutions, any disruption in our operations by the obligations of our Personnel to perform military service as a result of current or future military actions involving Israel and any other factors described in audio codes filings made with the US Securities and Exchange Commission from time to time. Audio codes assumes. No obligation to update the information. In addition, during the call Audio codes, we refer to non-gaap net income and net income per share. Auto codes. Has provided a full reconciliation of the non-gaap income and net income per share to the net income and net income per share. According to gaap in the press release that is posted on.
On his website before I turn the call over to management. I like to remind everyone that this call is being recorded and archived. Webcast will be made available on the best 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 the shop day shop day. Please go ahead.
Thank you, Roger. Good morning and good afternoon everybody. I would like to welcome all to our third quarter 2025 conference call with me. This morning is non B, Chief Financial Officer and Vice President of Finance. Start off by presenting a financial overview of the core. I will then review the business highlights and summary for the core and discuss Trends and developments in our business and industry. We will then turn it into the Q&A session. Neuron
Thank you, Chef Thai and hello everyone.
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 relations website and earning supplemental deck.
On today's call, we will be referring to both gaap and non-gaap financial results.
The earnings press release that we issued earlier this morning. Contains a Reconciliation of the supplemental, long Gap, financial information that I will be discussing on this call.
Revenues for the third. Quarter were 61.5 million and increase of 2.2% over the 60.2 million reported in the third quarter of last year.
Services revenues for the quarter were 30.9 million. A decrease of 4.8% over a year ago, period.
our revenues, the amount of deferred revenues, that, as of September, 3025 was 81.6 Million compared to 78.6%
Revenues by geographical region for the quarter were split as follow. North, America 48% in May 33%, Asia, Pacific 15%.
And Central and Latin America for present?
Our top 15 customers represented an aggregate of 53% of our revenues in the third quarter, of which 38% was attributed to our 10 largest distributors.
in the third quarter of 2025, we experienced,
Increased expenses due to the implementation of the 2 new new tariffs of us Imports, accounting to approximately half a million dollars additional cost which impacted on both gaap and non-gaap.
Gap results are as follows gross margin for the quarter was 65.5%, compared to 65.2% in Q3 2024.
Operating income, for the third quarter was 4.1 million or 6.6% of revenues.
Compared to operating income of 4.9 million or 8.1% of revenues in Q3 2024.
Debida for the quarter was 5.2 million compared to EA 5.9 million for Q3 2024.
Net income for the quarter was 2.7 million or 10 cents per diluted share compared to net income of 2.7 million or 9 cents per diluted share for Q3 2024.
Non-gaap results are as follow.
Non-gaap gross margin for the quarter was 65.8% compared to 65.6% in Q3 2024.
Non-gaap operating income for the third quarter was 5.8 million or 9.5% of revenues compared to 7 million or 11.7% of revenues, in Q3 2024.
Non-gaap Aida for the quarter was 6.9 million compared to non-gaap Aid of 7.9 million for Q3 2024.
Non-gaap net income. For the third quarter was 4.9 million or 17 cents per diluted share compared to 4.9 million or 16 cents per diluted share in Q3 2024.
At the end of September 2025, Cash Cash, equivalents Bank deposits marketable, Securities and financial investment total 79.7 million.
Net cash provided by operating activities, was 4.1 million for the third quarter of 2025.
They sells outstanding as of September 3020 2025, where 122 days?
In July 2025, we received Court approval, in Israel, to purchase up to an aggregate amount of 25 million of additional ordinary shares. The court approval. Also permit us to declare dividend of any part of this amount. The approval is valid through December 30 2025
On July 29th, 2025, we declared the cash dividend of 20 cents per share. The aggregate amount of the dividend was approximately 5.6 million. The dividend was paid on August, 28th, 2025, to our shareholders.
Of record that the close of trading on August 14th, 2025.
During the quarter, we acquired 1 million and 2067000 share of our ordinary shares for a total consideration of approximately 12.7 million.
regarding the direct cost impact from the Tariff announced since the beginning of 2025, we expect roughly 3 million of cost down for the full year 2025
Given the recent stabilization in the Tariff developments, we are resuming our practice of providing full year outlook.
For 2025, we expect revenues of $244 million to $246 million and non-GAAP.
Earning per share of 60 cents to 64 cents. I will now turn the call over to shopee
Admits a long-term transformation to an AI driven hybrid Cloud software and services company.
In the core, we continue to build on the strengths of our UK and ccas from activity. Business accounting. Now for over 90% of our revenue and successfully leveraged our Enterprise customer base to drive, cross sale of our fast growing Genai business applications that make up our conversational AI division. In fact in many ways we can say that as of now, audio code has put voice AI front and center going forward in our operations in terms of sustained growth.
Or solid third quarter results were marked by strong Traction in our dual growth engines. Namely the live family of unified communication and collaboration, and and customer experience connectivity services and conversational AI, business line. In fact, our
Conversational AI.
Business includes 50% in the core putting us on track to reach the 40 to 50% growth for the full year 2025 together. These 2 units, drove or, um, annual recurring Revenue, exit, third quarter to 75 million or up 25% year-over-year, which positioned us to reach a full year of Target of 78 to 82 million.
We are growing ever, more optimistic, about the continuous strong, our momentum and growth Prospect for the overall company fueled by a strong pipeline of opportunities. Catalyzed by recent launch of the next gen live platform and the growing demand for productivity enhancing Genai evaluate services. This is further reinforced by the growing backlog of life and managed services that will convert to revenue. Incoming course we ended third quarter backlog at 76 million growing 13.4% over the year ago, backcolor of 67 million, let me share some key developments in our strategic business lines, that underscore our growing confidence in our growth process.
We have seen growing demand from partners for our live platform and all-in-1. Cloud software stack that empowers them to seamlessly integrate connectivity with Genai powered business voice applications to that. End in the third core, we signed the live platform with a global T1 system. Integrator this strategic Landmark deal calls for alignment and coordination of all sales aspects from initial opportunity pursuit to post sales and delivery this comprehensive approach, ensures customer satisfaction and success.
The initial scope of the gruin provides managers as we see in gateways of service in support of major, UC and CX platforms. So Greenfield deployments and for existing customers looking to transition their legacy infrastructure to the cloud.
Where applicable the partner will also cross-sell our award winning teams certified Voca contact center delivering a unified uccx experience.
Based on the currently committed Services, we anticipated low single digit. Millions in, recurring Revenue during the first year of operation in this agreement.
This strategic agreement represents a clear win-win for both parties.
For the Tier 1 System, integrator or all-in-1 uccx conversational. AI stack. Simplifies operations, reduces cost to service, to serve and enhances and customer experience for us. It's significantly expands our Market, reach and scales, our go-to Market execution, in the Enterprise space,
Together with our long-standing successful partnership with AT&T in North America. This announcements reinforces our Market credibility and position us as a partner of choice. For all AI infused uccx Services. We are seeing strong interest from other T1 prospects as the T1 system. Integrates the prospects recognize the transport, the uh transformative potential.
Special and cost efficiencies of our integrated platform.
We look forward to sharing additional updates on new partnership with global system, integrators incoming quarters.
Now to conversational AI in addition to both through
I'd like to highlight the progress we're making in our newer service, Meeting Insights on Prem, which we call Mia Op. This is our unique GenAI-powered, AI-driven intelligence platform, providing transcription, summarization, automation, and connectivity to other leading enterprise applications that is completely detached from the internet and tailored for regulated environments.
And security sensitive Industries. Launched earlier this year, we have gained significant Traction in the Israeli Market mainly in the government space all through Awards of mouse recently, our leading position in the Israeli market for further cemented, when we were, officially awarded the contract under the project Nimbus the Israeli government's multi-year Cloud migration initiative,
As the exclusive provider of meeting intelligence services in the naans SAS category for kind of the Year 2026. This award streamlines procurement for all Israeli agencies, both civilian and Military allowing them to activate. Miop without the lengthy tender process. We are also actively marketing these solution outside of Israel and initial customer responses in APAC and North America. I've been overwhelmingly positive.
Now to more successfully um the Gen AI part business line in the core, uh, Voice AI Connect and Live Hub, leading our revenue growth in the conversational AI business is the Voice AI Connect and Live Hub connectivity and orchestration services business, which grew most of 50,000 year-over-year. We deliver a standout core with strong performance across the board, highlighted by exceptional third quarter booking growth that puts us on track to exceed our full year target.
This momentum was fueled by high volume of new logo wins across the United States, Europe and APAC, along with significant expansion within our existing install base driving. This rapid growth is the emergence of the voice box Market, which is experiencing, robust growth, driven by advancement, in gen, Ai and NLP market analysis projects that the voice bot Market size will reach above 25 billion in 2034 up from just 4.3 billion in 2024, with a compound annual growth rate of 20%.
Now to the voice, AI connect space.
A key highlight was a high six-figure voice access project license agreement aligned with a leading agentic platform, an AI agentic platform that supports virtual agent and agent assist use cases for its large enterprise clients. We view this initial engagement as the foundation for a strong and mutually beneficial partnership on the expansion front. We renewed the strategic agreement with the long-standing Voice-R-Connect customer.
A leading multinational Healthcare Company, the expanded contract reflects a substantial increase in total value driven by the customer growing demand for virtual agent and assist capabilities as part of the digital transformation. Additionally we secure the significant follow on order from 1 of the largest credit unions in the US which is deploying our voice. AI connect solution for conversational ivr, use case,
Following the successful implementation of initial order in the first core of 25 focus on internal HR and help desk. The customer expanded rollout to it to its ivr Discord enabling sales service option. For its end customers.
Moving on to uh, live Hub, um, offered as a software as a service, live app is a cloud native sales, serve platform. This helps voice both Developers for Enterprise and service provider connect
Connect orchestrate and enrich, The Voice communication collaboration stride.
Across various, uh, channels and systems during the third core. Another exciting message was the introduction of agent AI capabilities within our live, uh, classroom this pivotal enhancement delivers, an end-to-end solution pairing, um, text to speech to text and llm part about development with related best-in-class, connectivity services,
No turning. Before turning to the detailed business line discussion, let me quickly shift to the third quarter profitability, metrics Outlook
We perform outperform on Top Line which Revenue growing 2.2% year-over-year. A non-gaap gross margin for the quarter was 65.8 which is above our previous quarter of 64.5, the sequential improvement in our non-gaap gross margin is attributed, mainly to more favorable product, mix and lower tariffs.
Related cost, headwinds of about half a million versus prior expensive above a million in the second quarter of 2025.
We expect 4 quarter, 25 tar costs to be in the similar range to this recent third quarter.
Third quarter, are non-gaap operating expenses of 34.7 million compared with 35 million in the second quarter and 32.5 in the year. Go quarter on the year on a year basis. The IR expenses are attributed mostly to targeted investment in. Growing the conversation, AI business, and our impact from the weakening, uh, US Dollars against the euro in the third quarter.
Non Gap or Rising operating margin reached 9.5% compared to 7.2% in the previous score and 11.2. In the year ago, quarter non-gaap eida, margin was 11.2. Again, an improvement compared to 8.6 in the previous score. Non-gaap earning per. Share was 17 cents compared to 14 cents in the previous quarter and 16 cents. In the year ago quarter, in terms of AD count, we ended the quarter with 961 employees, essentially flat across the first 3 quart of 2025 and compared to 935 employees in the year ago. Period.
Net cash provided by operating activities, was 4.1 million for the quarter and 25.2 million. For the first strict words of 2025.
The key takeaway from this financial results is that our business remains strong and is expected to grow, steadily through 2026 and Beyond across our 2, primary sectors, looking at to the upcoming year, we expect a noticeable shift in our Topline performance. Specifically, we project the 2025 will demonstrate both change and growth compared to 2024 this Improvement is significant as it will Mark a reversal of the declining annual revenue Trend experience in 2023 and 24. So we're moving to positive.
Trend. And and we believe the 26th will be even higher.
Firstly uh, the UK and CX connectivity. Business is stabilized compared to 2023 and 24 Edition to significant developments. In this third quarter, 1 signing, the service agreement with the leading global system integrator
and increasing engagement with Cisco which is the second largest shareholder in the UK's Market um involving all type of services including clo Cloud connect offer, um offering devices and more the 2 development gives us countries and the disconnectivity business will perform well in coming years and secondly is anticipated. We expect strong growth exceeding, 40% annually in our conversation or a business over the coming years.
Now, to some of the major uh, business line. Starting with Microsoft, a third quarter, Microsoft business was almost flat year over year.
Impacted by seasonality and late purchase order pushed into the first quarter for the first 9 months of the year. Microsoft grew 4% driven by our connectivity. Business couples, who was increasing the tax rate of sales of devices of a cic or team certified Cass in our conversation of business application and services. Importantly, our pipeline of created opportunities remains robust in the third quarter up 20% year-over-year and up 8% for the first 9 of 2025.
Again, compared to the year ago, core Market service and partner inputs continue to support a growth story for Tim's phone. Business driven by the Microsoft operator connect program, where adoption in the market continues to show Healthy Growth
Kim's phone usage is also strongly supported by Microsoft airports to drive copilot as a central capable chatbot for the teams phone meetings, and calls all these points to a strong market today and forthcoming gears and further supports business expansion and dominance in the connectivity area.
Representative wins.
1 is a very large, uh, greater than a million, uh, defense information system agency. Uh, here we have signed, uh, 1.1 million, uh, total contract value over the next 36 months to AT&T covering the expansion of additional minutes as we see services and calling plans in a new region. Second win is with a financial services company operating internationally. It is a provider of Investment Management Services outside to the US. This is a, uh, 1 million, uh, tcv contract over 36 months deals, renewal of full prior services and purchased at a modest increase in value.
Third is a win with one of the largest patriotic hospitals in the U.S., again close to a million TCV. Over 36 months covering UM life from managed services and gateways, enabling full migration from legacy PBX systems to Microsoft Teams.
Now, turning to the, uh, uh, contact center or customer experience Market.
6 grew by 13% year-over-year in the core benefiting, from growth in connectivity for ccas and connectivity Services. We continue to see growing customer and partner interest in life CCX, which is an integral component of the life platform and targets applications such as Cloud migration of contact center replacing tradition.
1 800 Services was clicked to call functionality and enabling conversational AI through voice, AI connect and live up connectivity as discussed in my earlier remarks. During the third quarter, we signed a landmark live platform agreement with a global T1. Um, system integrator where live CX was a critical element of the pro-based agreement. Expanding our network of global T1. Integrated remains a key strategic initiative, is it significantly broadened or addressable Market.
These Partners focus on midsize customer experience. Customers a segment traditionally underserved by our direct sales. Team importantly, our pipeline of opportunity remains both it remains robust and gives us confidence about our growth Prospect for the bounce of 25 and into 2026.
Now to conversational AI other lines. As we fast previously conversational, AI business, grow 50% in the quarter?
Key in the growth for the business line of force a connect and live up, which we just discussed, let's now discuss highlights of additional business line that make up the conversation. AI segments.
First of all, CAC we recorded another quarter record, uh, quarter of strong year, um, year-over-year investing and booking growth of Oka.
Key highlights include major winning Aviation. We signed a deal to deploy our team. Certified Omni Channel contact center at a major a pack Asia Pacific airports 1 of the busiest airports in the world beating out a couple of well-known premium SAS vendors. We won based on our ability to leverage our broad portfolio offering a tightly integrated teams based phone and CK service along with mobile app called enable and to contact center of our via our click to call solution ongoing momentum. I mean higher education. We continue to make solid progress in this vertical, adding another University. This score, uh, that selected to our best-in-class. Team certified contact center solution and alongside our live teams and manage UC Services. We now serve 12 University accounts in North America with Voca, including the second largest university in the US and the largest school network on.
On the East Coast.
Microsoft unified certification, VA. Became the second vendor worldwide to receive certification. We have distance. Ourself from competition as the only vendor who is real world. Enterprise production growth experience with this Tech. Thanks for a long-standing partnership with Microsoft.
Now, to a new product update later in the full score, we plan to Launch.
Physically agent insights and lines with our UniFi integration model with teams fun. Adding a critical AI layer to the Microsoft teams CX, ecosystem and struggling Voca. CAC as the role.
Role as the intelligent engagement layer, driving efficiency, quality business value. Now, needless to say that agent Insight is based on our technology developing the meeting insight and and therefore, um, we are in a good position to make great, uh, value and benefit, uh, from a technology in different areas. Overall, our achievements are great gaining recognition from leading industry analysts culminating in recent awards, from the UC today. For best Microsoft teams contact center representing back-to-back, win for the second year in a row in this category.
Moving to meeting insights meeting insights Cloud Edition, maintains strong momentum in the score, with continued growth, in new customer Acquisitions other, key metrics include the number of meetings and unique active users reached.
Record levels contributing to continued growth in the monthly recurring Revenue.
In addition to our broad Market Focus, we have developed workflow solution, tailored to specific verticals. Adding
Automation and connectivity to other leading Enterprise, it solution aimed at leveraging Genai to enhance meeting productivity, and accelerate business outcomes. A retraction has been promising. 1 example, involves a University of Central Florida 1 of the largest universities in the US, which amongst a broad portfolio of solutions, customer takes from us. They deployed also meeting inside to generate AI, powered summaries and transcripts of interaction between counselors and students. Working closer with the customer. We performed anal analytics such as sentiment analysis and a speaker to listen, and ratio displaying key metrics in a custom dashboard available to the counselor or supervisors, to support students, wellness and improved graduation rates. This is just 1 example for our vertical solution, a transforming data into actionable insights and support workflows optimizing.
Outcomes: We look forward to sharing more in the coming future. Moving on to MOP since the second core, we've made significant strides in Israel and globally that are expected to drive growth in organizational segments.
In addition to the exciting contract award, and the product, Nimbus, we discussed earlier. Our momentum in Israel is extending beyond the government vertical. We're known in final stages of several large Tenders in other vertical, such as Healthcare and utilities reflecting growing demand across various Industries. We also witnessed customer interests outside of Israel when customers understand the uniqueness of mop solution, that unlocks meeting intelligence at the edge Computing level
Fresh from the debate of mopin asia-pacific in early third core. We are now engaging with several government opportunities, in an APAC countries in setting up a proof of concept trials. In late third core. We also showcase our solution in the United States and customer response was overwhelmingly positive. We are currently in conversation with several US Federal and civilian agencies through a mix of collaboration with partners and direct engagements.
We ended the third quarter with close to 10 customers in production and about 15 Pro of Concepts project. All rising from Word of Mouth recommendation, based on our exceptional pipeline of opportunities. We expect our momentum in mop to further. Accelerate in full score, you need to 2026.
So, to wrap up our call.
More than 40 to 50% on an annual basis in the conversation, AI business.
We are operating from position of strength supported by a fortress balance sheet, a dominant connectivity franchise, and a growing conversation. I segment that enhances and surprise intelligence and productivity. We believe that these factors position as well for the rest of 2025 and increase growth in Topline and earnings into 2026.
And with that, I've concluded my presentation, and I'll move the call over to the operator. Thank you. At this time, we'll be conducting our question-and-answer session.
If you'd like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question key, and you may press star 2. If you would like to remove your question from the queue, for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
1 moment, please while we pause for questions.
Thank you. We have a question from Joshua Riley with nem. Your line is live
All right. Uh, thanks for taking my questions today. Uh, nice job on the quarter here, uh, on the global Tier 1 System integrator win. Uh, maybe you could give us some more color on on what helped you, uh, win that deal from a product perspective, or any other factors that you think would be relevant, uh, to give to investors here.
Right? Well, I need to go back to the, um, uh, significance of, um, you know, uh, life platform, which is a, um, you know, Services delivery platform for uks and CX think by now, uh, this is the only platform that allows large system to integrators, which serve, you know, large Enterprises around the world deliver, um, all all of the different services that are needed in order to move to, um, you know, modernizing, um, uh, the Enterprise and, and to move to, you know, um, um, enhance I would say, communication and collaboration. So I think from connectivity, which connects all of the sides of the company, you know, across the globe. And then adding on top of that management management of users management of sites. And then on top of that, a list of business application and and among them, uh, in advance. And AI first contact center, I read the code.
Recording solution meeting intelligence platform. And um, uh, now we coming with voice Bots and, uh, um, Chennai, applications. So, all in all, this is the most advanced platform these days. And for a large system, integrator that operates globally. This is would be a great, you know, uh, Services delivery platform to serve its customers. And I think from that, you know, uh stems, um uh, the recognition, in the importance of that platform.
Got it. That's helpful. And then um, you know
you're obviously building a lot of these kind of adjacent AI Solutions, you know, for the communication landscape, you know, if you look at the, uh,
You know, the older, uh, products that you have, uh, in the market, whether it's sbc's or some of the gateways and all of all of the, uh, you know, older products that you sell, those are typically in pretty price sensitive markets, what do you seeing with some of these new AI Solutions in your ability to drive pricing power? Um, relative to the, you know, the UK Market which is historically a pretty price sensitive market, right? Well, you know, voice AI is a emerging, you know, um, markets and and therefore, you know, those are organization which, you know, or uh, earlier adopters and quick to implement
You know, workflows and solutions that will substantially enhance their productivity are not a less, you know, concerned with the cost. So we do not see any price pressure at this point on on the uh, voice AI business application. And we believe that, as we will continue to enhance and that more, uh, features and make, uh, the solution substantially richer. You know, we can still keep that. So so you you have identified correctly, the difference between the Legacy, uh, business which is price sensitive. But again there, you know, we enjoy the fact that
Application, got it, that's helpful. And then on the Microsoft business I believe last quarter at grew 6% year-over-year and I think you said it was flat this quarter. Is there any change in the trends there? Or is that just really around the year-over-year, uh, comparison, uh, Dynamics for the growth rate.
Right. So, I think, you know, um, you know, overall uks Market, um, is kind of, flattening out in recent 12 months, we've seen that Trend, you know, it's been fairly strong up until, um, you know, 22, 23 then it becomes, you know, the expansion rate. Um, you know, um, um, um, really, uh, the Chris, uh, it's a good Market. It's, it's a great market, right? Just take into account that, you know, out of, you know, if you go back to like, 15 years ago and you talk about 400 million end points overall in the Enterprise World, um, um, you know, served in the past by pbxs. So, these days, you know, you cast, I believe it's serving less than 100 million
So, a lot of room to grow and and again, you know, um, we all need to acknowledge that the majority of the growth occurred more in the US UK uh, Western Europe, Canada Australia, maybe, Etc. But there's a huge actually above 50% of the 400 million Market. That's still served by the old PBX, um, uh, technology. So there's a lot of room to grow. So in the butt,
I think is such that. I would assume that, uh, you guys will grow, but, you know, our services should be applied to the non. Um, you know, you get some Market, um, at at a lower, um, range. And I think that would be, um, basically the driver for, um, increased growth, uh, going forward. Got it. And then last question for me is, if you look at the mix of Revenue in the quarter, I would say that. The product Revenue was uh, pretty strong about what, uh, my estimate was and what I would have expected. Um, can you just help us understand maybe what outperformed on the product Revenue side, uh, in the quarter?
Yeah. We, uh, as you seen first, we had a, a, a great, uh, quarter in terms of product recognized revenues, it was driven mainly, uh, at the software, uh, which is part of the voice AI Solutions. So that's where the product, uh, growth came from
got it. Thank you very much.
Thank you.
As we have no further questions on the lines at this time, I'd like to turn the call back over to Mr. Adlersberg, for any closing remarks
Okay, thank you, operator. I would like to thank anyone who attended our conference call today. Please continue good business. Momentum in our UK and Cass operations. And continued growth in our emerging
Voice AI business. We believe we are on track to grow revenue and profitability next coming years.
We look forward to your participation in our next quarterly conference calls.