Audiocodes‘ primary growth engine was Microsoft during fiscal year 2022, according to the company’s President and Chief Executive Officer, Shabtai Adlersberg.
He made the comments during the fourth quarter and full-year 2022 earnings call with investors, in which it was revealed that Audiocodes saw revenues of $275.1 million in 2022, compared to $248.9 million in 2021 – a 10.5 percent year-over-year growth.
Quartley revenues for the fourth quarter increased by 6.9 percent year-over-year to $70.7 million.
Adlersberg commented: “I am pleased to report solid financial results for the fourth quarter, growing revenues 6.9% year-over-year and capping 2022 with a double-digit growth rate of 10.5%.
“We see growing business activity in UCaaS and CX, and with the ongoing proliferation of AI in the enterprise, we believe we are well-positioned to extend our leadership in applying AI to voice applications and emerge a stronger and more competitive player.”
Microsoft
In May 2022, Audiocodes reported strong growth in its Zoom and Microsoft Teams offerings as businesses continue to add voice to their collaboration platforms.
That strong growth continued throughout the year, and as stated above, Adlersberg claimed that the primary growth engine for Audiocodes in FY 2022 came from its Microsoft-related business.
The voice-focused firm has said that its Microsoft-related business grew 12 percent year-over-year in the fourth quarter and 18 percent for the entire year, with its Microsoft Teams business growing 33 percent for the full year.
Perhaps unsurprisingly, Skype for Business declined around 10 percent year-over-year and accounts for less than 10 percent of Audiocodes’ quarterly Microsoft business.
The fourth quarter of FY 2022 was strong for Microsoft Teams account additions, with Audiocodes adding 279 accounts against the 229 it added in the same period last year.
Adlersberg states that this speaks to the “ongoing healthy adoption of Teams” in the company’s growing product pipeline.
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Audiocodes has already introduced its entry-level Microsoft Teams-native conversational AI-firt contact centre application to the market, and its planning to expand on this significantly in 2023.
Adlersberg added: “We saw ongoing momentum of AudioCodes Live managed services, which exited the year at over $30 million, growing close to 80% year-over-year, with TCV expanding to over $100 million.
“Service revenue grew 18% year-over-year and accounted for 40.3% of revenues, up from 37.7% a year ago.
“Despite the macro uncertainty we faced in the second half of the year, we believe long-term secular growth drivers remain intact.
“AudioCodes is well-positioned to capitalize on the defense technology such as digital transformation to the cloud within our core UC and CX markets and vendor consolidation favoring our primary partners, namely Microsoft, Genesis, and Zoom.”
Audiocodes’ UCaaS business also received a boost from the Zoom ecosystem during FY 2022, with the company seeing its business grow above 50 percent year-over-year.
