AudioCodes announced its financial results for the first quarter ended March 31, 2025, with revenues of $60.4 million, a 0.5% increase compared to $60.1 million in Q1 2024. GAAP net income for the quarter was $4.0 million, or $0.13 per diluted share, an increase from $2.1 million, or $0.07 per diluted share, in Q1 2024. Non-GAAP net income was $4.7 million, or $0.15 per diluted share, compared to $5.2 million, or $0.17 per diluted share, in the prior year.
The company reported positive momentum across its UC, CX, and conversational AI practices, with Microsoft business up 7% and conversational AI business growing over 10% year-over-year. Annual Recurring Revenues (ARR) reached $67 million, representing approximately 25% growth year-over-year, driven by Live managed services.
Operating results were impacted by new US tariffs on imports from China, which led to lower gross profit from product sales. AudioCodes stated it is closely monitoring developments and has taken steps to mitigate the impact for the remainder of 2025. The company generated $13.5 million in net cash from operating activities and acquired 500,000 ordinary shares for $5.2 million during the quarter.
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