Hội nghị công bố kết quả kinh doanh Quý 3/2026 của AudioCodes (AUDC): Tăng trưởng VoiceAI và định hướng

AudioCodes (NASDAQ: AUDC) công bố doanh thu quý 3 năm 2026 đạt 64,1 triệu USD, tăng 4,2% so với cùng kỳ năm trước, nhờ tăng trưởng từ mảng dịch vụ và VoiceAI bù đắp cho khả năng sinh lời từ hoạt động suy giảm. Ban lãnh đạo đã tái khẳng định dự báo doanh thu và EPS non-GAAP cho cả năm.

Những điểm nhấn chính

• Doanh thu quý 3 tăng 4,2% so với cùng kỳ năm trước lên 64,1 triệu USD. Doanh thu mảng dịch vụ tăng 19,9% lên 37,1 triệu USD và chiếm 57,8% tổng doanh thu.
• Lợi nhuận ròng theo GAAP tăng lên 3,6 triệu USD, tương đương 0,15 USD trên mỗi cổ phiếu pha loãng. Lợi nhuận ròng non-GAAP giảm xuống còn 4,0 triệu USD, tương đương 0,16 USD trên mỗi cổ phiếu pha loãng.
• Dịch vụ Live Managed Services và các ứng dụng VoiceAI tạo ra tổng doanh thu định kỳ hàng năm đạt 87 triệu USD vào cuối quý, tăng 16% so với cùng kỳ năm trước và gần 90% trong vòng ba năm.
• Doanh thu từ VoiceAI tăng gần 50% so với cùng kỳ năm trước. Ban lãnh đạo duy trì mục tiêu doanh thu VoiceAI đạt 25 triệu USD cho năm 2026 và 50 triệu USD vào năm 2028.
• Doanh thu liên quan đến Microsoft đạt 43 triệu USD, tăng 4%, trong khi giá trị hợp đồng mới ký kết gắn liền với Microsoft Teams Phone tăng 61% lên hơn 20 triệu USD.
• AudioCodes tái khẳng định dự báo năm 2026 với doanh thu từ 251 triệu USD đến 256 triệu USD và EPS non-GAAP từ 0,60 USD đến 0,75 USD.

Dữ liệu tài chính quan trọng

Khu vực Bắc Mỹ đóng góp 47% doanh thu, tiếp theo là EMEA với 34%, châu Á - Thái Bình Dương với 16%, và khu vực Trung và Mỹ Latinh với 3%. Top 15 khách hàng lớn nhất chiếm 56% doanh thu quý, trong đó 35% đến từ 10 nhà phân phối lớn nhất.

Trong quý, AudioCodes đã mua lại 1,5 triệu cổ phiếu phổ thông với giá trị khoảng 15,1 triệu USD. Công ty cũng đã chi trả cổ tức bán niên với tổng trị giá khoảng 4,8 triệu USD sau khi công bố mức 0,20 USD/cổ phiếu vào tháng 8.

Kết quả kinh doanh và vận hành

Microsoft và mảng kết nối

Mảng kinh doanh liên quan đến Microsoft chiếm gần 66% tổng doanh thu. Doanh thu quý 3 từ hoạt động này tăng 4% lên 43 triệu USD, trong khi doanh thu 9 tháng đầu năm tăng 5,2% lên 125 triệu USD. Ban lãnh đạo cho biết mảng này vẫn đang trên đà vượt 170 triệu USD cho cả năm.

Các cơ hội kinh doanh mới liên quan đến Microsoft đạt 90 triệu USD, tăng 9,4% so với cùng kỳ năm trước. Giá trị hợp đồng mới ký kết gắn liền với Teams Phone vượt 20 triệu USD, tăng 61% và đánh dấu quý thứ hai liên tiếp đạt kỷ lục.

Doanh thu mảng kết nối từ bộ điều khiển biên phiên (SBC), gateway và thiết bị đặt tại cơ sở khách hàng duy trì ổn định. Doanh thu SBC tăng 8,2% trong 9 tháng đầu năm, và ban lãnh đạo kỳ vọng doanh thu SBC cả năm sẽ vượt 135 triệu USD, cao hơn mức kỷ lục trước đó là 131 triệu USD vào năm 2024. Doanh thu gateway dự kiến đạt khoảng 50 triệu USD cho năm 2026.

Nền tảng AudioCodes Live Platform cũng tiếp tục mở rộng. Doanh thu định kỳ hàng tháng trong tháng 9 đạt gần 0,5 triệu USD, tăng khoảng 35% so với cùng kỳ năm trước, trong khi doanh thu định kỳ quy năm vượt 5,5 triệu USD sau khi ký kết hợp đồng với một khách hàng lớn tại khu vực châu Á - Thái Bình Dương.

VoiceAI

VoiceAI tiếp tục là mảng kinh doanh tăng trưởng nhanh nhất của công ty, với doanh thu quý tăng gần 50% so với cùng kỳ năm trước. Giá trị hợp đồng ký mới của VoiceAI Connect và LiveHub tăng 60% trong 9 tháng đầu năm 2026, trong khi các cơ hội kinh doanh mới được tạo ra tăng hơn 40% so với cùng kỳ năm 2025.

Công ty nhấn mạnh hợp đồng VoiceAI thời hạn 24 tháng trị giá hàng triệu USD với một nhà mạng lớn tại Bắc Mỹ. Deutsche Telekom cũng lựa chọn VoiceAI Connect cho dịch vụ Mobile AI Notes của mình, sử dụng nền tảng này làm lớp kết nối và điều phối giữa mạng di động của hãng với Mistral AI.

Voca CIC ghi nhận thêm nhiều khách hàng mới trong các lĩnh vực giáo dục, dịch vụ tài chính và doanh nghiệp lớn. Trong đó bao gồm một cơ sở giáo dục đại học lớn của Mỹ, một công ty bảo hiểm của Đức và một doanh nghiệp thuộc danh sách Fortune 500 đạt được thông qua AT&T Business.

Meeting Insights Cloud Edition ghi nhận số lượng cuộc họp tăng 90% so với cùng kỳ năm trước. Doanh thu định kỳ hàng tháng tăng hơn gấp đôi, trong khi số lượng người dùng hoạt động tăng 50%. Ban lãnh đạo cho biết chiến lược bán hàng tập trung theo ngành dọc đã cải thiện tỷ lệ chuyển đổi khách hàng mới trong quý.

Đối với Mia Edge, AudioCodes đã có thêm 11 khách hàng trong các lĩnh vực quốc phòng, y tế, an ninh, cơ sở hạ tầng và chính phủ tại Israel. Công ty cũng đã triển khai ứng dụng dịch thuật theo thời gian thực cho Cơ quan Quản lý Dân số và Nhập cư Israel, đồng thời hai cơ quan tương đương tại châu Âu cũng đang tiến hành đánh giá giải pháp này.

Định hướng của ban lãnh đạo

AudioCodes tái khẳng định triển vọng năm 2026 như sau:

• Doanh thu từ 251 triệu USD đến 256 triệu USD.
• EPS pha loãng non-GAAP từ 0,60 USD đến 0,75 USD.
• Doanh thu VoiceAI đạt 25 triệu USD, cùng mục tiêu dài hạn của ban lãnh đạo là 50 triệu USD vào năm 2028.
• Doanh thu cả năm liên quan đến Microsoft vượt 170 triệu USD.
• Doanh thu SBC vượt 135 triệu USD và doanh thu gateway đạt khoảng 50 triệu USD.

Các số liệu này là mục tiêu của ban lãnh đạo và vẫn phụ thuộc vào nhu cầu thị trường, khả năng thực thi cùng các rủi ro mà công ty đã nêu.

Rủi ro và các điểm cần lưu ý

Khả năng sinh lời từ hoạt động suy giảm bất chấp doanh thu tăng trưởng. Biên lợi nhuận hoạt động theo GAAP giảm từ 6,6% xuống 5,3%, trong khi biên lợi nhuận hoạt động non-GAAP giảm từ 9,5% xuống 7,4%.

Mức độ tập trung doanh thu vẫn đáng chú ý, khi các hoạt động liên quan đến Microsoft chiếm gần 2/3 mảng kinh doanh và top 15 khách hàng đóng góp 56% doanh thu quý 3.

Ban lãnh đạo cũng chỉ ra các yếu tố có thể ảnh hưởng đến kết quả kinh doanh bao gồm cạnh tranh, định giá, mức độ đón nhận sản phẩm, các thay đổi công nghệ liên quan đến AI, diễn biến pháp lý, tình hình kinh tế toàn cầu và nguy cơ gián đoạn tiềm ẩn liên quan đến các xung đột liên quan đến Israel.

Trong mảng VoiceAI, các nhà cung cấp dịch vụ truyền thông đám mây lớn đang tích hợp các tác nhân AI của riêng họ vào các nền tảng hiện có. Điều này đặt ra thách thức cạnh tranh đối với mô hình điều phối độc lập với nhà cung cấp (vendor-neutral) của AudioCodes.

Điểm nhấn phiên hỏi đáp với chuyên gia phân tích

Khi được hỏi lý do tại sao các doanh nghiệp lại chọn VoiceAI Connect thay vì các công cụ AI đi kèm của Microsoft, Zoom, NICE hoặc các nhà cung cấp truyền thông khác, ban lãnh đạo cho biết các tổ chức lớn thường ưu tiên các kiến trúc kết hợp giải pháp tối ưu nhất (best-of-breed). VoiceAI Connect được thiết kế để cho phép khách hàng linh hoạt thay đổi các mô hình ngôn ngữ lớn, công nghệ giọng nói và các thành phần khác khi hiệu năng cùng chi phí thay đổi theo thời gian.

Về việc triển khai Mia Edge trong các môi trường được kiểm soát nghiêm ngặt và cách ly hoàn toàn (air-gapped), ban lãnh đạo cho biết nhu cầu đang rất cấp thiết, đặc biệt là trong lĩnh vực quốc phòng. Công ty cho hay khách hàng có xu hướng thử nghiệm ứng dụng nhanh chóng, yêu cầu cải tiến và đưa vào vận hành thực tế nhanh hơn so với các dự án mạng và viễn thông truyền thống. Ban lãnh đạo cũng đề cập đến sự quan tâm ngày càng tăng từ các tổ chức châu Âu mong muốn hoạt động bên ngoài các môi trường đám mây công cộng.

Toàn văn cuộc gọi báo cáo kết quả kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

Operator

Greetings, and welcome to the AudioCodes Third Quarter 2026 Earnings Conference Call. [Operator Instructions] And please note, this conference is being recorded.

I will now turn the conference over to your host, Itamar Rosen, Chief Legal Officer at AudioCodes. Sir, please go ahead.

Itamar Rosen

Thank you, operator. Hosting the call today are Shabtai Adlersberg, President and Chief Executive Officer; and Niran Baruch, 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 forward-looking statements relating to AudioCodes' business outlook, future economic performance, product introductions, plans and objectives related thereto and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters are forward-looking statements as the term is defined under U.S. Federal Securities Laws.

Forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to, the following: the effect of global economic conditions and general conditions in AudioCodes' industry and target markets, in particular, including governmental undertakings 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 AudioCodes and its customers' products and markets; timely products and technology development, upgrades, the advent of 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 in AudioCodes financing agreements, possible impacts and disruptions from AudioCodes acquisitions, including the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes business; possible adverse impacts attributable to any pandemic or other public health crisis on our business and results of operations; the effect of the current and any future 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 AudioCodes filings made with the U.S. Securities and Exchange Commission from time to time.

AudioCodes assumes no obligation to update the information. In addition, during the call, AudioCodes will refer to non-GAAP net income and net income per share. AudioCodes has provided a full reconciliation of the non-GAAP net income and net income per share to its net income and net income per share according to GAAP in the press release that is posted on its website.

Before I turn the call over to management, I would like to remind everyone that this call is being recorded. An archived webcast will be made available on the Investor Relations section of the company's website at the conclusion of the call.

With all that said, I would like to turn the call over to Shabtai. Shabtai, please go ahead.

Shabtai Adlersberg

Thank you, Itamar. Good morning and good afternoon, everybody. I would like to welcome all to our third quarter 2026 conference call. With me this morning is Niran Baruch, Chief Financial Officer and Vice President of Finance of AudioCodes. Niran will start off by presenting a financial overview of the quarter. I will then review the business highlights and summary for the quarter and discuss trends and developments in our business and industry. We will then turn it into the Q&A session. Niran?

Niran Baruch

Thank you, Shabtai. 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 an earnings 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 non-GAAP financial information that I will be discussing on this call.

Revenues for the third quarter were $64.1 million, an increase of 4.2% over the $61.5 million reported in the third quarter of last year. Services revenues for the third quarter were $37.1 million, an increase of 19.9% over the year ago period. Services revenues in the third quarter accounted for 57.8% of total revenues.

Revenue by geography was as follows: North America, 47%; EMEA, 34%; Asia Pacific, 16%; and Central and Latin America, 3%. Our top 15 customers represented an aggregate of 56% of our revenues in the third quarter, of which 35% was attributed to our 10 largest distributors.

GAAP results are as follows: gross margin for the quarter was 65.7% compared to 65.5% in Q3 2025. Operating income for the third quarter was $3.4 million or 5.3% of revenues compared to operating income of $4.1 million or 6.6% of revenues in Q3 2025. Net income for the quarter was $3.6 million or $0.15 per diluted share compared to net income of $2.7 million or $0.10 per diluted share for Q3 2025.

Non-GAAP results are as follows: non-GAAP gross margin for the quarter was 65.8% compared to 65.8% in Q3 2025. Non-GAAP operating income for the third quarter was $4.8 million or 7.4% of revenues compared to $5.8 million or 9.5% of revenues in Q3 2025. Non-GAAP net income for the third quarter was $4 million or $0.16 per diluted share compared to $4.9 million or $0.17 per diluted share in Q3 2025. At the end of September 2026, cash, cash equivalents, short-term bank deposits, short-term marketable securities and long-term financial investments totaled $47.1 million. Net cash provided by operating activities was $4.1 million for the third quarter of 2026. Days sales outstanding as of September 30, 2026, were 109 days. On August 4, 2026, we declared a semiannual cash dividend of $0.20 per share. The aggregate amount of the dividend was approximately $4.8 million.

In September 2026, we received court approval in Israel to purchase up to an aggregate amount of $30 million of our ordinary shares. The court approval also permits us to declare a dividend out of any part of this amount. The approval is valid through March 9, 2027. During the quarter, we acquired 1.5 million of our ordinary shares for a total consideration of approximately $15.1 million.

Now to provide an update on our guidance. We reiterate our guidance for revenues for 2026 to be in the range of $251 million to $256 million and non-GAAP earnings per share of $0.60 to $0.75. I will now turn the call over to Shabtai.

Shabtai Adlersberg

Thank you, Niran. Third quarter 2026 delivered solid financial results and healthy operating performance with both core business areas moving forward. Connectivity for UCaaS and CCaaS is an established profitable market-leading activity. VoiceAI is a younger business started back in 2018, continues to expand and is projected to become a major growth driver over the coming years. Two primary growth engines continue to propel revenue, Live Managed Services and VoiceAI application aimed at the emerging intelligent voice enterprise. By the end of third quarter 2026, they jointly represented $87 million in annual recurring revenues, a 16% increase from the prior year, which highlights how much high-quality recurring revenue now contributes to the business model.

Over the last 3 years, annual recurring revenue has expanded by almost 90%, providing a solid base for further growth. Results from both primary business matched expectations. Connectivity held its leading position in the UCaaS and CCaaS market, and VoiceAI kept growing at 40% to 50% year-over-year. As a result, the company remains on course for its stated VoiceAI revenue target of $25 million in 2026 and its goal of $50 million by 2028.

Now to some of the financial highlights of the quarter. Year-over-year revenue growth picked up to 4.2%. Over 90% of revenue came from the enterprise segment with the Microsoft Teams Phone business expanding 4%. Connectivity covering the SBC, Gateways and CPE business lines has kept its revenue steady. The SBC business line has had a good year so far. Revenue is up 8.2% year-to-date versus the 3 -- the first 3 quarters of 2025, and full year revenue is on track to exceed $135 million, which would be -- which would set a record above the prior high of $131 million back in 2024.

Among Gateway sales, third quarter '26 was the best quarter of the year-to-date, and the full year is projected to roughly $50 million. 2026 will mark a second consecutive year of stability and modest growth following the Gateway revenue decline of 2023 and 2024. Service revenue rose 19.8% year-over-year and now makes up for about 58% of total revenues. Headcount stood at 992 full-time employees at the close of third quarter, 9 fewer positions than in the prior quarter. Operating activities generated $4.1 million in net cash during the quarter. All those represent great financial performance in the third quarter.

So to business strategy. What is driving our new growth story? What gives us the confidence that our strategy direction is the right one and that we are well positioned to capitalize on the opportunities ahead. Several durable industry trends underpin the growth strategy. Reshaping enterprise communications through the adoption of new intelligent voice technologies. Central to this shift is the fast growth of GenAI, which is altering how people engage with computers, machines and intelligent systems.

Voice is quickly becoming one of the most natural, intuitive and capable interfaces linking people and machines. Advances in speech recognition, natural language processing and understanding and real-time conversational AI make interactions with intelligent systems feel increasingly human. These advances also carry VoiceAI beyond basic human-machine interaction. They open the way to intelligent automation of conversations, communications and business workflows throughout the enterprise. Taken together, these developments strengthen the view that intelligent voice for our enterprise is a major growth opportunity, and they underline the decision to speed up investment in intelligent voice solution for the enterprises.

AudioCodes has invested in the UCaaS world for more than 25 years now, which places us in a strong position to pursue this opportunity, a customer base that has grown over several decades in voice communication to thousands of accounts for both voice communication and infrastructure, together with its long-standing leadership in voice system and solution supports the company ability to lead this space.

Now let's move to some of the actual business line. Now let's talk first about Microsoft. Microsoft is practically delivering about close to 66% of our overall business. Third quarter 2026 revenue came to $43 million, up 4% year-over-year. Over the first 9 months of 2026, revenue from the Microsoft business rose 5.2% year-over-year to $125 million, which keeps the company on course for its stated full year revenue goal of above $170 million. Newly created opportunities in this space reached $90 million, a 9.4% increase over the prior year that points to a healthy demand environment ahead.

Bookings of new contract value linked to Microsoft Teams Phone activity climbed 61% year-over-year to more than $20 million. The quarter marks the second consecutive record quarter, which is a solid evidence of this segment potential and our leadership in the space. Momentum built in the third quarter on the opportunity that's above $10 million that we reported in the previous quarter. After starting at a monthly recurring revenue of only tens of [thousands of] dollars in the second quarter, the focus is now for an MRR of several hundred thousand by mid-2027. As reported earlier, the project is expected to contribute several million dollars of product revenue annually over the next 3 years on top of the annual Gateway sales. The Microsoft Team voice ecosystem is healthy. Overall, Teams Phone represents only a small share of the more than 320 million monthly active Teams users and with voice becoming more central to Microsoft enterprise strategy and for AI-driven Copilot workplace, the long-term outlook for this market looks favorable.

A key component of our sales in the Microsoft space is the Live Platform for Live Teams. Sales of Live platform made good headway in the third quarter as the platform serves the core underlying technology for the Live Teams solution portfolio. Enterprises, service providers and partners use AudioCodes Live platform, a cloud-based voice service delivery platform, to deploy, manage and scale enterprise voice communications and AI-powered voice services, comprising of voice connectivity, centralized management and automation.

AudioCodes Live platform kept up its strong growth in the third quarter. September monthly recurring revenue came close to $0.5 million, an increase of roughly 35% year-over-year. A new large customer in Asia Pacific signed in the third quarter of '26 helped push Live platform services beyond $5.5 million in annualized recurring revenues. This adds to the momentum behind the cloud-based intelligent voice services strategy.

Now to the conversational AI business at AudioCodes. The VoiceAI growth strategy was carried out successfully in third quarter, adding one more quarter of growth. VoiceAI revenue rose by nearly 50% year-over-year. The first 9 months of 2025 (sic) compared to those first 3 -- 9 months of 2025. That results move the business near to its stated annual goal of 50% growth year-over-year and $25 million in revenue for the full year of 2026. Strength in voice AI technologies, combined with a distinctive mix of expertise in telephony, networking, security, management and orchestration for intelligent voice in business application across cloud and edge computing underlines the success in the conversational AI segment. The discussion now moves to business lines within that category in more detail.

Let's begin with VoiceAI Connect. AudioCodes' VoiceAI Connect technology and solution link enterprise telephony networks with the fast-growing ecosystem of VoiceAI business applications. Drawing on AudioCodes' deep experience in voice communication and SBC technology, VoiceAI Connect lets enterprises and solution providers join existing telephony infrastructure such as the PSTN, SIP Trunk, PBX, UCaaS, CCaaS and the WebRTC to advance conversational AI solution. Large enterprise and service provider customers, among them, Deutsche Telekom, Vodafone, Rabobank and others, are planning to build tens of distinct VoiceAI agents across their operations, all would be voice AI target market. Connectivity is only one part of the offering.

VoiceAI Connect also supplies a flexible orchestration layer that integrates and coordinates best-of-breed AI technologies. Those including speech-to-text, text-to-speech, large language models, speaker identification and authentication, real-time translation and voice analytics and recording. Above these layers sit enterprise applications such as integration with CRMs, contact centers, databases and business workflows.

Now VoiceAI Connect and LiveHub operations advanced significantly over the course of third quarter '26, an accelerating pipeline, steady flow of new logos, substantial expansion with the existing customer base made the momentum broad-based. Invoicing revenues grew by close to 40% over the first 9 months of 2025 (sic), 60% increase in booking was recorded for the first 9 months of 2026 versus the prior year period. The number of new opportunities created was more than 40% higher than in the same period of 2025. Notable wins with large enterprises in North America and Europe are also worth mentioning, including a major multimillion dollar and 24-month contract from a very large network operator in North America.

What was unique in this quarter that usually VoiceAI Connect opportunities wins are typically staying confidential, usually are not allowed to be talked about, but there was one unique announcement that was published in the third quarter. Deutsche Telekom announced that they have selected AudioCodes VoiceAI Connect for their AI-powered mobile services. So in October 2026, Deutsche Telekom announced the deployment of AudioCodes VoiceAI Connect to power its new Mobile AI Notes mobile service for business customers, providing automatically recording, transcribing and summarizations for mobile conversations. VoiceAI Connect serves the connectivity and orchestration layer between Deutsche Telekom Mobile Network and Mistral AI, a French company, demonstrating its ability to enable scalable network integrated VoiceAI services. This deployment represents an important strategic validation of VoiceAI Connect's potential as an enabling platform for telecom operators seeking to introduce and monetize a broad-based range of AI-powered voice services.

Now to Voca CIC, our AI-first contact center solution for Microsoft Teams. Voca CIC kept up its strong operational momentum during the quarter, fueled by new customer wins in education, financial services and large enterprises, along with growing adoption of AI capabilities. Revenue in the third quarter grew according to plan.

Let me dwell on some unique wins in that quarter. We see deeper traction in education mainly. Another major U.S. higher education institution chose Voca CIC this quarter as part of a project that also covers the AudioCodes Live for Microsoft Teams. The deal additionally covered omnichannel capabilities with Agent Insights, the automated conversation summarization for agents, supporting them. Dozens of universities and colleges worldwide are now customers, reflecting both the depth and the potential of the education vertical for Voca CIC.

Next, let's talk about financial services. After the Swiss and the Asian banking wins for Voca CIC noted in earlier quarters, a major German insurance company chose Voca CIC this quarter to replace its legacy contact center. That makes 3 quarters in a row in which major financial institution has selected Voca CIC. And then let's talk about partner-driven wins. Voca CIC is bundled with AudioCodes Live for Microsoft Teams migration projects and the same approach applies with AT&T Business and its AT&T Cloud Voice offering for Teams phone. In the third quarter, the partnership produced a win of a Fortune 500 global enterprise, who chose Voca CIC through AT&T...

Operator

Apologies for interrupting. Sorry, Mr. Adlersberg, your line has just gone robotic for a moment. Apologies.

Shabtai Adlersberg

Okay. Can I continue?

Operator

Yes, sir. If you keep talking, I'll let you know once it's cleared up.

Shabtai Adlersberg

Fine. Okay. So let's move on to the next VoiceAI area of activity, which is Meeting Insights. Talking about Meeting Insights Cloud Edition, strong momentum carried Meeting Insights Cloud Edition through the quarter as key operating metrics kept growing. Meeting volume climbed 90% year-over-year. Monthly recurring revenue more than doubled and active number of users set new records with 50% year-over-year growth. By the end of the third quarter 2026, Meeting Insights has become a mature, field-proven cloud platform shaped by years of innovation and customer deployments. A significant rise in the use of Meeting Insights mobile client recording ranked among the main developments of third quarter.

Beginning in third quarter '26, a shift in the go-to-market approach to specific verticals has noticeably improved the success rate in winning new accounts, customized tailored workflow solution for these verticals form the basis of the strategy, which keeps gaining traction and is producing meaningful commercial and operational momentum.

Moving to the last business line in the VoiceAI business. Moving on to Mia Edge. Mia Edge is our next-generation Meeting Insights on-prem solution, which provides secured meeting analysis and intelligent extraction. Interest in air-gapped solution, which operate without access to the Internet and/or to cloud services has been rising in recent years. Secure meeting insight and intelligent extraction are what Mia Edge offers with government and defense use cases as the main target.

Growing worldwide emphasis on data sovereignty has produced comparable needs in the verticals such as health care and finance. More than 25 accounts were active as of the second quarter, according to our previous reporting, 10 were in production and the rest in pilots and implementation. A new advanced solution launched in the third quarter brought in 11 new customers across defense, health care, security, infrastructure and government in Israel.

The quarter saw the first development and deployment in Israel of a real-time translation application for asylum seekers. Adopted by the State Population and Immigration Authority, it provides live translation in tens of interview rooms daily. It is now in full use. Evaluation of this solution is now underway at 2 comparable European authorities. Other public organizations, including such as police and further public service entities are also evaluating the real-time translation application as a way to simplify the typically complex job of serving foreign citizens and visitors in a given country.

And with that, I've pretty much concluded my presentation. Just to wrap up, operational momentum was good in the third quarter of 2026, driven especially by continued strong growth in 2 primary engines, the Live family of Managed Services and VoiceAI business application. Steady gains in recurring revenue operations and services keep the company on track to meet its business target for the full year of 2026. And with that, I've concluded my presentation, and I'll open the session for question and answers. Operator?

Operator

[Operator Instructions] We have a question from Joshua Reilly with Needham.

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Joshua Reilly

Starting off on VoiceAI Connect, you've positioned it as a vendor-neutral orchestration layer that keeps enterprises from being tied to a single AI vendor. At the same time, Microsoft, Zoom, NICE and other cloud communication vendors are all bundling their own AI agents into their platforms. In your recent wins and pipeline, how often are customers choosing a best-of-breed multi-vendor approach versus just using the AI that comes with their phone or contact center platform? And what's typically driving that choice?

Shabtai Adlersberg

Okay. Thank you, Josh. Well, as we all know, VoiceAI is making advances at a very fast pace. And actually, we all know that large enterprises prefer a best-of-breed approach, meaning they would like to choose each a different LLM that's adapted to their specific need, a different speech-to-text and a few more.

So yes, it's true that the traditional, I would say, UC providers such as Microsoft and others have a complete set of functionalities. But when we work with large enterprises and talking to enterprises that has hundreds of employees, they prefer to work with some of the more advanced frameworks, some mature those from Google or from others. And usually, the flexibility, just assume that you've been working with an LLM and there's a new one that came up more accurate, cheaper, you would like to be able to switch to that new LLM in a matter of simple development. And that was the value that VoiceAI Connect offers as it is providing full flexibility in moving and evolving their solution with different components that may appear at a very fast pace.

Joshua Reilly

Great. On Mia Edge, you've described strong interest from government, defense, health care and finance customers that can't use AI on public clouds. How eager are these regulated customers to adopt AI in closed or air-gapped environments today? And are they moving from pilots to production or still mostly evaluating?

Shabtai Adlersberg

Well, actually, the need is very kind of urgent, especially when you're talking about defense applications, they need to move fast because we all understand that use of meeting intelligence and the ability to transcribe, generate summaries and similar application is ramping very fast. Think about organizations, which are in need to respond to new threats at a very fast pace. So yes, I think we are usually and substantially different than what we see in networking and telecom.

The move is pretty fast. They test the application fairly fast, respond on what needs to be fixed and/or improved and then they move very fast to production. So -- and this is an increasing trend today in the world. Everybody kind of starts -- well, big organizations, enterprises and governments feel the need to go completely off the public Internet and clouds. And therefore, it is talking about organization in Europe, we know that they are very anxious to be using their own technology, and they do not want to go cloud. So it's a fast growing trend.

Operator

[Operator Instructions] Okay. As we have no further questions on the lines at this time, I would like to turn the call back over to Mr. Adlersberg for any closing remarks.

Shabtai Adlersberg

Thank you, operator. I would like to thank everyone who attended our conference call today. With continued solid performance in our UCaaS and CCaaS operations and rapid growth in the VoiceAI business, we believe we are on track to grow and expand our business in the next coming years. We look forward to your participation in our next quarterly conference call. Thank you all. Have a nice day.

Operator

Thank you. Ladies and gentlemen, this does conclude today's conference. You may disconnect your lines at this time, and we thank you for your participation.