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AudioCodes Reports Third Quarter 2024 Results

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OR YEHUDA, Israel, Nov. 6, 2024 /PRNewswire/ — 

Third Quarter Highlights

Quarterly revenues decreased by 2.2% year-over-year to $60.2 million;Quarterly service revenues increased by 6.4% year-over-year to $32.5 million;GAAP results:
– Quarterly GAAP gross margin was 65.2%;
– Quarterly GAAP operating margin was 8.1%;
– Quarterly GAAP EBITDA was $5.9 million;
– Quarterly GAAP net income was $2.7 million, or $0.09 per diluted share. Non-GAAP results:
– Quarterly Non-GAAP gross margin was 65.6%;
– Quarterly Non-GAAP operating margin was 11.7%;
– Quarterly Non-GAAP EBITDA was $7.9 million;
– Quarterly Non-GAAP net income was $4.9 million, or $0.16 per diluted share.Net cash provided by operating activities was $7.9 million for the quarter.AudioCodes repurchased 332,709 of its ordinary shares during the quarter at an aggregate cost of $3.6 million.

Details

AudioCodes (NASDAQ: AUDC), a leading provider of unified communications voice, contact center and conversational AI applications and services for enterprises, today announced its financial results for the third quarter ended September 30, 2024.

Revenues for the third quarter of 2024 were $60.2 million compared to $61.6 million for the third quarter of 2023.

EBITDA for the third quarter of 2024 was $5.9 million compared to $6.4 million for the third quarter of 2023.

On a Non-GAAP basis, EBITDA for the third quarter of 2024 was $7.9 million compared to $10.1 million for the third quarter of 2023.

Net income was $2.7 million, or $0.09 per diluted share, for the third quarter of 2024 compared to net income of $4.3 million, or $0.14 per diluted share, for the third quarter of 2023.

On a Non-GAAP basis, net income was $4.9 million, or $0.16 per diluted share, for the third quarter of 2024 compared to $8.3 million, or $0.25 per diluted share, for the third quarter of 2023.

Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to intangible assets; (iii) expenses related to deferred payments in connection with the acquisition of Callverso Ltd; (iv) financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies; (v) tax impact which relates to our Non-GAAP adjustments; and (vi) in Q1 2024 non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the lease for the Company’s new headquarters. A reconciliation of net income on a GAAP basis to a non-GAAP basis is provided in the tables that accompany the condensed consolidated financial statements contained in this press release.

Net cash provided by operating activities was $7.9 million for the third quarter of 2024. Cash and cash equivalents, short-term bank deposits, long and short-term marketable securities and long-term financial investments were $88.4 million as of September 30, 2024 compared to $106.7 million as of December 31, 2023. The decrease in cash and cash equivalents, short-term bank deposits, long and short-term marketable securities and long-term financial investments was the result of the use of cash for the continued repurchasing of the Company’s ordinary shares pursuant to its share repurchase program and the payment of a cash dividend during each of the first and third quarters of 2024 and purchase of property and equipment related to leasehold improvements of our new corporate headquarter in Israel, offset, in part, by cash from operating activities.

“I am pleased to report we have successfully executed against our strategic priorities this quarter, as we continue to make progress in our long-term goal of leading the voice services market for the UCaaS and CX markets. We continued our transformation to become a cloud software and services company with a higher proportion of recurring revenue vs. legacy perpetual revenues,” said Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes.

Third quarter services revenues grew 6.4% year-over-year and accounted for 53.9% of revenues, the highest on record for us. Fueling the strength of our services revenue stream as our primary growth engines were Live managed services (consisting of Live Teams and Live CX) and conversational AI. Specifically, Live Teams business grew 21% year over year and accounted for 44% of total Microsoft business compared to 37% a year ago. On conversational AI, third quarter dollar value of contracts signed increased roughly 50% vs the year ago period.

Our success in building Live managed services and recurring revenue stream has translated to strong year-over-year ARR growth of 40%, ending 3Q at $60 million ARR, up from $48 million exiting 2023. This success is owed to the trust we have built throughout the years with partners and enterprise customers in the voice services space. There is no better proof than our long-standing multi-year partnership with AT&T in North America, leveraging our expertise in providing secure voice connectivity to help their business customers onboard to Microsoft Teams. This fruitful partnership has contributed multi-millions of annual recurring revenues over the last several years.

Speaking of conversational AI, strong operational momentum continues, driven by long-term tailwind of infusing AI into UC and CX workflows in customers’ inexorable demand to drive ongoing productivity gains.  Accordingly, we have seen significant pick-up in pipeline activities across our entire conversational AI suite, including Voca CIC, our AI first CX solution for Microsoft Teams, SaaS Recording solutions such as Meeting Insights and interaction recording, and Voice AI Connect.

Overall, we delivered on our business priorities in the quarter, with the strength in our Live recurring businesses buttressing the healthy overall pipeline for our major practices such as Microsoft business, CX and Conversational AI.  We believe this bodes well for seeing improved top-line growth performance as we head into 2025 and beyond,” concluded Mr. Adlersberg.

Share Buy Back Program and Cash Dividend

In July 2024, the Company received court approval in Israel to purchase up to an aggregate amount of $20 million of additional ordinary shares. The court approval also permits AudioCodes to declare a dividend out of any part of this amount. The approval is valid through January 1, 2025.

On July 30, 2024, the Company declared a cash dividend of 18 cents per share. The dividend, in the aggregate amount of approximately $5.4 million, was paid on August 29, 2024, to all of the Company’s shareholders of record on August 15, 2024.

During the quarter ended September 30, 2024, the Company acquired 332,709 of its ordinary shares under its share repurchase program for a total consideration of $3.6 million.

As of September 30, 2024, the Company had $11 million available under this approval for the repurchase of shares and/or declaration of cash dividends.

Conference Call & Web Cast Information

AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company’s third quarter of 2024 operating performance, financial results and outlook. Interested parties may participate in the conference call by dialing one the following numbers:

United States Participants: 888-506-0062

International Participants: +1 (973) 528-0011

The conference call will also be simultaneously webcast. Investors are invited to listen to the call live via webcast at the AudioCodes investor website at http://www.audiocodes.com/investors-lobby.

About AudioCodes

AudioCodes (NASDAQ, TASE: AUDC) is a leading innovator of intelligent cloud communications solutions. AudioCodes empowers enterprises and service providers to build and operate state-of-the-art voice networks, unified communications platforms, and AI-driven productivity tools. The cutting-edge portfolio includes cloud-native applications, advanced voice AI technologies, and comprehensive communication solutions tailored for the modern digital workplace. Trusted by global Fortune 500 companies and tier-1 operators worldwide, AudioCodes drives digital transformation through seamless integration, enhanced collaboration, and unparalleled communication experiences.

For more information, visit http://www.audiocodes.com.

Follow AudioCodes’ social media channels:

AudioCodes invites you to join our online community and follow us on: AudioCodes Voice Blog, LinkedIn, Twitter, Facebook, and YouTube.

Statements concerning AudioCodes’ business outlook or future economic performance; product introductions and 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 that 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 effect of global economic conditions in general and conditions in AudioCodes’ industry and target markets in particular; 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 product and technology development, upgrades and the ability to manage changes in market conditions as needed; possible need for additional financing; the ability to satisfy covenants in the Company’s loan agreements; possible disruptions from acquisitions; the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes’ business; possible adverse impact of the COVID-19 pandemic on our business and results of operations; the effects of the current terrorist attacks by Hamas in Israel, and the war and 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 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 AudioCodes’ filings with the U.S. Securities and Exchange Commission. AudioCodes assumes no obligation to update the information in this release.

©2024 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What’s Inside Matters, OSN, SmartTAP, User Management Pack, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, VocaNom, AudioCodes One Voice, AudioCodes Meeting Insights, AudioCodes Room Experience are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners. Product specifications are subject to change without notice.

Summary financial data follows

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands  

September 30,

December 31,

2024

2023

(Unaudited)

(Audited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$ 23,522

$ 30,546

Short-term and restricted bank deposits

202

212

Short-term marketable securities

24,245

7,438

Trade receivables, net

58,081

51,125

Other receivables and prepaid expenses

12,085

9,381

Inventories

33,677

43,959

Total current assets

151,812

142,661

LONG-TERM ASSETS:

Long-term Trade receivables

$ 15,856

$ 16,798

Long-term marketable securities

37,308

65,732

Long-term financial investments

3,123

2,730

Deferred tax assets

4,577

6,208

Operating lease right-of-use assets

33,207

36,712

Severance pay funds

17,132

17,202

Total long-term assets

111,203

145,382

PROPERTY AND EQUIPMENT, NET

25,236

10,893

GOODWILL, INTANGIBLE ASSETS AND OTHER, NET

38,182

38,581

Total assets

$ 326,433

$ 337,517

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

Trade payables

5,479

7,556

Other payables and accrued expenses

24,066

29,943

Deferred revenues

39,390

38,820

Short-term operating lease liabilities

5,859

7,878

Total current liabilities

74,794

84,197

LONG-TERM LIABILITIES:

Accrued severance pay

$ 15,893

$ 16,662

Deferred revenues and other liabilities

18,110

17,142

Long-term operating lease liabilities

30,742

31,404

Total long-term liabilities

64,745

65,208

Total shareholders’ equity

186,894

188,112

Total liabilities and shareholders’ equity

$ 326,433

 

$ 337,517

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands, except per share data

Nine months ended

Three months ended

September 30,

September 30,

2024

2023

2024

2023

(Unaudited)

(Unaudited)

Revenues:

Products

$ 84,647

$ 91,299

$ 27,750

$ 31,039

Services

95,975

89,525

32,493

30,552

Total Revenues

180,622

180,824

60,243

61,591

Cost of revenues:

Products

34,123

36,568

11,380

11,347

Services

29,057

28,299

9,563

9,307

Total Cost of revenues

63,180

64,867

20,943

20,654

Gross profit

117,442

115,957

39,300

40,937

Operating expenses:

Research and development, net

39,780

43,363

12,666

13,960

Selling and marketing

52,427

52,747

17,607

17,221

General and administrative

12,146

12,657

4,155

3,977

Total operating expenses

104,353

108,767

34,428

35,158

Operating income

13,089

7,190

4,872

5,779

Financial income (expenses), net

(195)

1,688

(614)

492

Income before taxes on income

12,894

8,878

4,258

6,271

Taxes on income, net

(4,358)

(3,753)

(1,579)

(2,019)

Net income

$ 8,536

$ 5,125

$ 2,679

$ 4,252

Basic net earnings per share

$ 0.28

$ 0.16

$ 0.09

$ 0.14

Diluted net earnings per share

$ 0.28

$ 0.16

$ 0.09

$ 0.14

Weighted average number of shares used in computing basic
 net earnings per share (in thousands)

30,239

31,642

30,218

31,390

Weighted average number of shares used in computing diluted
 net earnings per share (in thousands)

30,769

31,807

30,778

31,374

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME 

U.S. dollars in thousands, except per share data

Nine months ended

Three months ended

September 30,

September 30,

2024

2023

2024

2023

(Unaudited)

(Unaudited)

GAAP net income

$ 8,536

$ 5,125

$ 2,679

$ 4,252

GAAP net earnings per share

$ 0.28

$ 0.16

$ 0.09

$ 0.14

Cost of revenues:

Share-based compensation (1)

274

304

99

94

Amortization expenses (2)

366

379

122

122

Lease expenses (6)

304

322

322

944

1,005

221

538

Research and development, net:

Share-based compensation (1)

1,642

2,090

471

649

Deferred payments expenses (3)

375

125

Lease expenses (6)

342

362

362

1,984

2,827

471

1,136

Selling and marketing:

Share-based compensation (1)

2,255

3,380

783

1,050

Amortization expenses (2)

33

33

11

11

Deferred payments expenses (3)

375

125

Lease expenses (6)

38

40

40

2,326

3,828

794

1,226

General and administrative:

Share-based compensation (1)

2,113

3,242

679

814

Lease expenses (6)

76

80

80

2,189

3,322

679

894

Financial expenses (income):

Exchange rate differences (4)

(754)

(1,237)

55

(767)

Income taxes:

Taxes on income, net (5)

422

1,247

1,023

Non-GAAP net income

$ 15,647

$ 16,117

$ 4,899

$ 8,302

Non-GAAP diluted net earnings per share

$ 0.50

$ 0.49

$ 0.16

$ 0.25

Weighted average number of shares used in computing Non-GAAP
 diluted net earnings per share (in thousands)

31,534

32,870

31,480

32,576

(1)  Share-based compensation expenses related to options and restricted share units granted to employees and others.

(2)  Amortization expenses related to intangible assets.

(3)  Expenses related to deferred payments in connection with the acquisition of Callverso Ltd.

(4)  Financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies.

(5)  Tax impact which relates to our non-GAAP adjustments.

(6)  In Q1 2024, non-cash lease expense which is required to be recorded during the quarter even though this is a free rent period under the lease for the Company’s new headquarters.

 

Note:  Non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.  The Company believes that non-GAAP information is useful because it can enhance the understanding of its ongoing economic performance and therefore uses internally this non-GAAP information to evaluate and manage its operations.  The Company has chosen to provide this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results and because many comparable companies report this type of information. 

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

U.S. dollars in thousands

Nine months ended

Three months ended

September 30,

September 30,

2024

2023

2024

2023

(Unaudited)

(Unaudited)

Cash flows from operating activities:

Net income

$ 8,536

$ 5,125

$ 2,679

$ 4,252

Adjustments required to reconcile net income to net
cash provided by operating activities:

Depreciation and amortization

2,788

1,972

1,004

652

Amortization of marketable securities premiums and
accretion of discounts, net

885

1,027

270

315

Decrease in accrued severance pay, net

(699)

(493)

(220)

(221)

Share-based compensation expenses

6,284

9,016

2,032

2,607

Decrease in deferred tax assets, net

826

1,164

762

996

Cash financial loss (income), net

137

(397)

(17)

(65)

Decrease in operating lease right-of-use assets

4,755

6,688

1,198

2,406

Decrease in operating lease liabilities

(3,931)

(8,411)

(496)

(4,056)

Decrease (increase) in trade receivables, net

(6,014)

4,645

(2,247)

(2,294)

Decrease (increase) in other receivables and prepaid
expenses

(2,704)

1,572

(2,939)

(339)

Decrease (increase) in inventories

10,119

(8,605)

4,172

907

Increase (decrease in trade payables

(2,077)

(4,700)

377

(482)

Increase (decrease) in other payables and accrued
expenses

(594)

(6,414)

1,011

(1,480)

Increase (decrease) in deferred revenues

1,631

3,423

266

(3,020)

Net cash provided by operating activities

19,942

5,612

7,852

178

Cash flows from investing activities:

Proceeds from short-term deposits

10

5,008

4

2

Proceeds of marketable securities

9,991

3,846

9,991

3,846

Proceeds from financial investment

76

29

Proceeds from redemption of marketable securities

3,450

3,084

1,084

Proceeds from redemption of financial investments

14,094

3,051

Purchase of financial investments

(675)

(81)

(675)

(81)

Purchase of property and equipment

(20,768)

(5,301)

(5,505)

(2,038)

 

Net cash provided by (used in) investing activities

(7,916)

20,650

3,844

5,864

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

U.S. dollars in thousands

Nine months ended

Three months ended

September 30,

September 30,

2024

2023

2024

2023

(Unaudited)

(Unaudited)

Cash flows from financing activities:

Purchase of treasury shares

(8,340)

(11,973)

(3,586)

(9,047)

Cash dividends paid to shareholders

(10,896)

(11,399)

(5,443)

(5,681)

Proceeds from issuance of shares upon exercise of options

186

254

6

140

Net cash used in financing activities

(19,050)

(23,118)

(9,023)

(14,588)

Net increase (decrease) in cash, cash equivalents, and restricted cash

(7,025)

3,144

2,672

(8,546)

Cash, cash equivalents and restricted cash at beginning of period

30,546

24,535

20,849

36,225

Cash, cash equivalents and restricted cash at end of period

$ 23,522

$ 27,679

$ 23,522

$ 27,679

 

 

Company Contacts

Niran Baruch,

Chief Financial Officer 

AudioCodes

Tel: +972-3-976-4000

niran.baruch@audiocodes.com

Roger L. Chuchen,

VP, Investor Relations

AudioCodes

Tel:  732-764-2552

roger.chuchen@audiocodes.com

 

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Technology

Data Monetization Market to grow by USD 8.03 Billion from 2024-2028, driven by widespread adoption and AI-driven market transformation – Technavio

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NEW YORK, Nov. 27, 2024 /PRNewswire/ — Report with the AI impact on market trends – The global data monetization market size is estimated to grow by USD 8.03 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 27.17% during the forecast period. High adoption of data monetization by various end-users is driving market growth, with a trend towards digital transformation of business. However, data privacy and regulatory compliance poses a challenge. Key market players include Accenture Plc, Adastra Group, Alphabet Inc., Ciena Corp., Cisco Systems Inc., CoreSite Realty Corp., Dawex Systems., Emu Analytics Ltd., Enea AB, Equinix Inc., Extreme Networks Inc., Infosys Ltd., International Business Machines Corp., Juniper Networks Inc., Microsoft Corp., Ness Technologies Inc., NetScout Systems Inc., Nippon Telegraph And Telephone Corp., Nokia Corp., Oracle Corp., SAP SE, Thales Group, and Viavi Solutions Inc..

AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View Free Sample Report PDF

Forecast period

2024-2028

Base Year

2023

Historic Data

2017 – 2021

Segment Covered

Type (Solution and Service), Platform (BFSI, E-commerce and retail, Media and entertainment, Manufacturing, and Others), and Geography (North America, APAC, Europe, South America, and Middle East and Africa)

Region Covered

North America, APAC, Europe, South America, and Middle East and Africa

Key companies profiled

Accenture Plc, Adastra Group, Alphabet Inc., Ciena Corp., Cisco Systems Inc., CoreSite Realty Corp., Dawex Systems., Emu Analytics Ltd., Enea AB, Equinix Inc., Extreme Networks Inc., Infosys Ltd., International Business Machines Corp., Juniper Networks Inc., Microsoft Corp., Ness Technologies Inc., NetScout Systems Inc., Nippon Telegraph And Telephone Corp., Nokia Corp., Oracle Corp., SAP SE, Thales Group, and Viavi Solutions Inc.

Key Market Trends Fueling Growth

The Data Monetization Market is booming as businesses seek new ways to leverage their data for profit. This trend is driven by advances in technology like AI, IoT, machine learning, and deep learning, which enable better Business Intelligence (BI) and Big Data analytics. Enterprises are using data monetization tools to transform customer experience, improve sales and marketing, and enhance finance operations. IT professionals focus on data structures and quality to ensure market ecosystem success. The Tools segment includes direct and indirect monetization processes, with large enterprises and SMEs in various industries like telecommunication, healthcare, MSMEs, digitization, IT and telecom, energy and utilities, e-commerce, and cloud computing, benefiting from data monetization solutions. Market competition is high, with enterprise rivalry driving innovation in data type segmentation, customer data, organization size, and industry verticals. Data monetization processes include internal and external methods, with Big Data playing a crucial role in customer service, sales, and finance. Cloud and on-premise solutions offer flexibility for businesses. 

The digital revolution in sectors such as BFSI and automotive is generating massive data through digital technologies, IoT devices, social media, and other digital channels. This data abundance presents businesses with opportunities to monetize their assets by analyzing and offering data-driven products or services. Cloud computing’s adoption allows organizations to store and process large volumes of data affordably, enabling them to explore monetization opportunities. 

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Market Challenges

The Data Monetization Market presents significant opportunities for enterprises to generate revenue from their data. However, implementing data monetization processes comes with challenges. Businesses must invest in data monetization tools that can handle various data structures and ensure data quality. Customer experience is crucial, and AI, IoT, machine learning, and deep learning technologies can help. However, the market ecosystem is complex, with tools segmented by data type, customer data segment, organization size, and industry vertical. Large enterprises and SMEs in telecommunication, healthcare, MSMEs, IT and telecom, energy and utilities, e-commerce, and finance sectors can benefit. Digitization and competition drive enterprise rivalry, making data monetization solutions essential for customer service, sales and marketing, finance, and other departments. Data monetization processes involve internal and external methods, including Big Data, cloud, on-premise, direct, and indirect monetization.Monetizing data involves organizations sharing or selling their data assets to generate revenue. However, this practice comes with risks, particularly regarding data privacy. Strict regulations such as the GDPR and CCPA require organizations to collect, store, process, and share personal data in specific ways. Complying with these regulations while monetizing data can be complex and challenging. Proper consent mechanisms, anonymization techniques, and data governance practices are essential to protect customer privacy and comply with regulatory requirements. Failure to do so may result in data breaches and unauthorized access, potentially hampering the growth of the data monetization market during the forecast period.

Insights into how AI is reshaping industries and driving growth- Download a Sample Report

Segment Overview 

This data monetization market report extensively covers market segmentation by

Type 1.1 Solution1.2 ServicePlatform 2.1 BFSI2.2 E-commerce and retail2.3 Media and entertainment2.4 Manufacturing2.5 OthersGeography 3.1 North America3.2 APAC3.3 Europe3.4 South America3.5 Middle East and Africa

1.1 Solution- Businesses today have an abundance of data from various sources, including customer interactions, IoT devices, and social media. This data presents an opportunity for organizations to extract valuable insights and monetize them effectively. Data monetization solutions enable businesses to transform their data into actionable products and services, such as personalized marketing campaigns, targeted recommendations, optimized pricing strategies, and improved inventory management. Rapid advancements in technologies like big data analytics, artificial intelligence, machine learning, and cloud computing make data monetization more accessible and effective. Retail giants like Walmart and Amazon are already utilizing customer data to enhance the shopping experience and drive sales. The high adoption of data monetization solutions across industries will positively impact the growth of the global market in the forecast period.

Download complimentary Sample Report to gain insights into AI’s impact on market dynamics, emerging trends, and future opportunities- including forecast (2024-2028) and historic data (2017 – 2021) 

Research Analysis

The Data Monetization Market refers to the business of extracting value from data through various monetization strategies. Enterprises are increasingly recognizing the value of their data and are seeking tools and processes to monetize it effectively. Business processes for data monetization include direct and indirect monetization, such as selling data to third parties or using it to enhance internal operations. Data monetization tools include AI, IoT, machine learning, and deep learning technologies, which enable the analysis and processing of large volumes of data. Business Intelligence (BI) and big data analytics are essential components of data monetization, providing insights to improve customer experience, sales and marketing, finance, and other areas. IT professionals play a crucial role in implementing data monetization strategies, ensuring data quality and structures are optimized for monetization. The market ecosystem includes various industries such as IT and telecom, energy and utilities, e-commerce, and finance. Data monetization can be implemented in the cloud or on-premise, offering flexibility to businesses. Direct data monetization involves selling data to third parties, while indirect monetization includes using data to enhance internal operations and customer service. Data monetization is transforming industries, from improving customer experience in e-commerce to optimizing operations in energy and utilities. The future of data monetization lies in the integration of advanced technologies and a customer-centric approach.

Market Research Overview

The Data Monetization Market refers to the business of extracting value from data through various processes and tools. Enterprises are leveraging data monetization to optimize business processes, enhance customer experience, and generate new revenue streams. Data monetization tools include AI, IoT, machine learning, and deep learning, among others, enabling Big Data analytics and Business Intelligence (BI). IT professionals focus on data structures and quality to ensure market ecosystem effectiveness. The Tools segment includes direct and indirect monetization processes, such as selling data to third parties or using it for internal purposes. Data types range from customer data to organizational data, with large enterprises and SMEs in various industry verticals, including telecommunication, healthcare, MSMEs, and e-commerce, adopting data monetization solutions. Digitization and enterprise rivalry drive the market, with cloud and on-premise solutions catering to diverse needs. Data monetization processes include internal and external monetization, impacting customer service, sales and marketing, finance, and more. Industries like IT and telecom, energy and utilities, and finance are significant contributors to the market’s growth.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

TypeSolutionServicePlatformBFSIE-commerce And RetailMedia And EntertainmentManufacturingOthersGeographyNorth AmericaAPACEuropeSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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SOURCE Technavio

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Technology

OverActive Media Reports Third Quarter 2024 with Strong Revenue Growth and EBITDA Break-Even

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49% Year-to-Date Revenue Growth and 71% Adjusted Gross Margin Drive OAM’s Path to Profitability

TORONTO, Nov. 27, 2024 /CNW/ – OverActive Media Corp. (“OverActive” or the “Company”) (TSXV: OAM) (OTC: OAMCF), a global esports, and entertainment company for today’s generation of fans, released its third-quarter results for the three and nine-month periods ended September 30, 2024.

Note to reader: A significant portion of the Company’s revenue is derived from “League Revenues,” which have historically varied in the quarter they were received, making period-over-period comparisons less meaningful. To address this, the Company has adopted a straight-line revenue recognition model, distributing revenue evenly over 12 months. This approach ensures more consistent quarter-to-quarter comparisons. The normalized financials in this press release reflect this change, providing clearer insights into the Company’s performance. All amounts are presented in Canadian dollars ($).

Below is a summary of the financial results for the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023:

$CAD (000’s)

Three
months
ended
September
30, 2024

Three
months
ended
September
31, 2023

Variance

 (%)

Three
months
ended
September
30, 2023
(Normalized)

Variance
(%)
Normalized

Nine
months
ended
September
30, 2024

Nine
months
ended
September
30, 2023

Variance
(%)

Nine
months
ended
September
30, 2023
(Normalized)

Variance
(%)
Normalized

Revenue

$6,881

$6,015

14 %

$3,998

72 %

$17,156

$11,492

49 %

$10,819

59 %

Adjusted Gross Profiti

$5,071

$4,837

5 %

$2,820

80 %

$12,194

$7,717

58 %

$7,044

73 %

Adjusted Gross Margini

74 %

80 %

-8 %

71 %

4 %

71 %

67 %

6 %

65 %

9 %

Operating Expenses

$7,609

$5,374

42 %

$5,374

42 %

$22,416

$17,259

30 %

$17,259

30 %

Adjusted EBITDAi

$4

$777

-99 %

($1,240)

100 %

($3,048)

($5,508)

45 %

($6,181)

51 %

Net Income (Loss)

($1,790)

($1,993)

10 %

($4,010)

55 %

$239

($11,170)

102 %

($11,843)

102 %

Net Working Capital

$9,423

($4,260)

321 %

($4,260)

321 %

$9,423

($4,260)

321 %

($4,260)

321 %

Cash & Equivalents

$8,861

$9,695

-9 %

$9,695

-9 %

$8,861

$9,695

-9 %

$9,695

-9 %

i Adjusted EBITDA and Adjusted Gross Margin/Profit are non-IFRS measures. Refer to “Non-IFRS Measures” at the end of this press release.

“Our third-quarter results demonstrate OverActive Media’s disciplined execution and growth. With year-to-date revenue up 49% to $17.1 million and positive net income of $239,000, we are making significant progress,” said Adam Adamou, CEO of OverActive Media. “This growth is driven by strategic changes, including renegotiated league agreements, increased digital revenue, and contributions from our KOI and Riders acquisitions, as well as our entry into the VALORANT EMEA ecosystem. We delivered positive Adjusted EBITDA this quarter and significantly reduced year-to-date Adjusted EBITDA losses by 45%, illustrating our strong path forward.”

Mr. Adamou continued, “Restructuring agreements with Activision earlier this year eliminated over $35 million in liabilities, strengthening our net working capital to $9.4 million. Additionally, post-quarter, we finalized a new Riot Games agreement that eliminated the remaining $2 million franchise fee for our LEC team, securing full ownership of our franchises without future obligations. These restructured agreements have enabled us to generate high-margin revenue streams, especially in digital merchandise and microtransactions.

Mr. Adamou concluded, “Today, we are operating from a position of financial strength — debt-free, globally diversified, and supported by partnerships with iconic brands like Pepsi, AMD, Telefónica, and Bell. With a clear strategy, strong margins, and transformative agreements in place, we are focused on expanding our opportunities and driving sustainable, profitable growth in the near future.”

Q3 2024 Financial Highlights

Revenue for the three months ended September 30, 2024 totaled $6.8 million, reflecting a 14% increase compared to $6.0 million in the same period of 2023. On a normalized basis—accounting for changes in revenue recognition—revenue increased by $2.8 million, or 72%. This growth was driven by several strategic initiatives, including the acquisition of Riders and KOI assets in the first quarter and our entry into the VALORANT EMEA ecosystem in February. Additionally, stronger performance across both our Team Operations and Business Operations segments, particularly from digital merchandise (MTX) sales, contributed significantly to this revenue expansion.Operating Costs for the three months ended September 30, 2024 totaled $7.6 million, compared to $5.4 million for the same period in 2023, reflecting a 42% increase. This rise in costs is primarily attributed to higher payroll expenses across both corporate and team operations, driven by the integration of the recently acquired Riders and the KOI assets. Additionally, one-time restructuring costs incurred as part of our strategic efforts to streamline operations and improve efficiency have also contributed to this increase.Adjusted Gross Profiti for the quarter (defined as revenue less direct costs) remained strong at $5.1 million, resulting in an Adjusted Gross Margini of 74%, compared to $4.8 million and 80% for the same period in 2023. On a normalized basis, Adjusted Gross Profit improved from $2.8 million to $5.1 million for the quarter and Adjusted Gross Margin improved from 71% to 74%. The stability in Adjusted Gross Profit, despite the increase in operating costs, highlights the effectiveness of our revenue growth initiatives, particularly from digital merchandise sales and contributions from our expanded portfolio. These results underscore the scalability of our business model as we continue to execute on strategic opportunities to drive long-term profitability. Adjusted EBITDAi for the three months ended September 30, 2024 was essentially break-even, compared to an Adjusted EBITDA gain of $777,000 in the same period in 2023. This year-over-year decline is primarily due to changes in the timing of revenue recognition for certain league earnings and in-game microtransactions (MTX). On a normalized basis, Adjusted EBITDA showed a significant improvement, moving from a loss of $1.2 million in Q3 2023 to a gain of $4,000 in Q3 2024. This improvement was driven by increased revenues from strategic acquisitions, and successful team performances in key tournaments.Net Loss for the three months ended September 30, 2024 was $1.8 million, representing a 10% improvement compared to a Net Loss of $2.0 million in the same period in 2023. This improvement was driven by strong revenue growth and disciplined cost management, even as the Company absorbed additional expenses related to acquisitions and integration.Net Working Capital (current assets less current liabilities) as of September 30, 2024 improved dramatically to $9.4 million, compared to negative working capital of $4.3 million in the same period in 2023 — a positive shift of $13.7 million. This significant change is primarily the result of the acquired businesses and the restructuring of our league partnerships, which resulted in the elimination of substantial league payables.Cash and Cash Equivalents as of September 30, 2024 totaled $8.9 million, compared to $9.7 million at the same time in 2023. This modest decrease reflects careful asset management, with planned investments directed toward operating activities and acquisition integration costs. The Company’s approach underscores a commitment to balancing strategic growth with operational efficiency while maintaining a strong liquidity position.

Nine Months 2024 Financial Highlights

For the nine months ended September 30, 2024 Revenue totaled $17.2 million, a 49% increase compared to $11.5 million during the same period in 2023. After normalizing for changes in revenue recognition, Revenue grew by $6.3 million or 59%. This growth was driven by strategic acquisitions of Riders and KOI, stronger performance across Team Operations and Business Operations segments, and contributions from our marketing and influencer activities.Operating Costs for the nine months ended September 30, 2024 were $22.4 million, a 30% increase compared to $17.3 million in the same period in 2023. This increase reflects higher payroll expenses, costs associated with integrating acquired businesses, and one-time restructuring expenses. These costs align with the Company’s strategic focus on streamlining operations and positioning for sustainable growth.Adjusted Gross Profit for the period stood at $12.2 million, with an Adjusted Gross Margin of 71%, compared to $7.7 million and 67% for the same period in 2023. On a normalized basis, year-to-date Adjusted Gross Profit significantly improved from $7.0 million to $12.2 million and Adjusted Gross Margin improved from 65% to 71%. The growth in Adjusted Gross Profit underscores the scalability of our revenue model, particularly from digital merchandise and expanded team contributions.Adjusted EBITDA loss for the nine months ended September 30, 2024 was $3.0 million, a 45% improvement from the $5.5 million loss reported for the same period in 2023. This improvement reflects robust revenue growth from acquisitions and changes in revenue recognition, offset by integration and restructuring costs.Net Income for the nine months ended September 30, 2024 was a gain of $239,000, compared to a Net Loss of $11.2 million in the same period in 2023. The shift to profitability was driven by strong revenue performance, disciplined cost management, and a gain from the termination of the Call of Duty League franchise obligation.

Selected Q3 2024 Achievements

OverActive Media’s teams, competing as Toronto Ultra at the 2024 Esports World Cup (EWC) in Saudi Arabia, delivered a strong international performance, earning valuable Club Championship Points in Overwatch 2, Teamfight Tactics, and Call of Duty to secure an 11th place global finish. This achievement underscores OverActive Media’s growing influence in the global esports ecosystem and highlights its role as an Official Esports World Cup Partner.OverActive Media secured new high-profile partnerships with global brands, including Pepsi, and renewed previous announced partnerships with AMD, SCUF and Bell. These partnerships continue to enhance the Company’s market presence and brand portfolio, particularly in the esports and gaming sectors.Toronto Ultra finished in third place at the CDL World Championships in Texas, capping off a successful year that included winning Major 1 in the first quarter and leading all CDL teams in team branded digital merchandise sales globally.

Significant Announcements Subsequent to Quarter End

OverActive Media’s esports team, Movistar KOI, partnered with Ecoembes, a leader in circular economy and packaging recycling, to drive sustainability within the esports community. This strategic sponsorship positions Movistar KOI as an advocate for environmental responsibility in European esports, focusing on recycling awareness, packaging recovery, and carbon neutrality. The partnership also includes Movistar KOI’s commitment to the United Nations Sports for Climate Action Framework, reinforcing OverActive Media’s dedication to sustainable growth.OverActive Media’s League of Legends team MAD Lions KOI qualified for the World Championship tournament for the sixth consecutive time, drawing peak viewership of almost 2.5M concurrent viewers.OverActive Media has secured a new long-term partnership with Riot Games for the League of Legends EMEA Championship (LEC), reinforcing its presence in one of the world’s premier esports leagues. The agreement eliminates all future franchise obligations from OAM’s balance sheet, significantly improving future cash flows and ensuring full ownership of its franchises with no remaining liabilities. This milestone positions the company for enhanced revenue opportunities and long-term growth in the global esports ecosystem.

The Company’s consolidated unaudited financial statements, notes to financial statements, and Management’s Discussion and Analysis for the three and nine-month periods ended September 31, 2024, are available on the Company’s website at www.overactivemedia.com and under the Company’s profile on SEDAR at www.sedarplus.ca.

Conference Call

The Company will conduct a conference call on Thursday, November 28, 2024, at 9:00 a.m. (Eastern Time) to review the third-quarter results, as well as provide an overview of the Company’s recent milestones and growth strategy.

To access the conference call without operator assistance, please register and enter your phone number at https://emportal.ink/3O6qT40 to receive an instant automated callback. To dial directly to be entered into the call by an operator, please dial 1-888-699-1199 or, for international callers, 416-945-7677.

A replay will be available shortly after the call and can be accessed by dialing 1-888-660-6345 or, for international callers, 289-819-1450. The entry code for the replay is 27822#. The replay will expire on Thursday, December 5, 2024.

A live conference call webcast can be accessed on OverActive’s website at https://app.webinar.net/ZXxR8X7pPLM. An online webcast archive will be available via the same link for three months following the call.

ABOUT OVERACTIVE MEDIA 

OverActive Media Corp. (TSXV: OAM) (OTC:OAMCF) is headquartered in Toronto, Ontario, with operations in Madrid, Spain and Berlin, Germany, is a premier global esports and entertainment company for today’s generation of fan. OverActive owns team franchises in professional esports leagues, including the Call of Duty League, operating as the Toronto Ultra, the League of Legends EMEA Championship (LEC), operating as MAD Lions KOI, the VALORANT Champions League (VCT) EMEA, operating as Movistar KOI and other professional esports leagues and competitions.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This press release contains statements which constitute “forward-looking statements” and “forward-looking information” within the meaning of applicable securities laws (collectively, “forward-looking statements”), including statements regarding the plans, intentions, beliefs and current expectations of OverActive with respect to future business activities and operating performance. Forward-looking statements are often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” or similar expressions and includes information regarding the anticipated financial and operating results of OverActive in the future.

Investors are cautioned that forward-looking statements are not based on historical facts but instead OverActive management’s expectations, estimates or projections concerning future results or events based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made. Although OverActive believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed thereon, as unknown or unpredictable factors could have material adverse effects on future results, performance or achievements of the OverActive. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements include the following: the potential impact of OverActive’s qualifying transaction on relationships, including with regulatory bodies, employees, suppliers, customers and competitors; changes in general economic, business and political conditions, including changes in the financial markets; changes in applicable laws and regulations both locally and in foreign jurisdictions; compliance with extensive government regulation; the risks and uncertainties associated with foreign markets; the ability of the Company to continue to execute on its existing partnerships and business strategy; the ability of the MAD Lions and Call of Duty Leagues to maintain viewership; the successful completion of the Company’s new venue; and other risk factors set out in OverActive’s most recent annual information form and its other filings with Canadian securities regulators, copies of which may be found under OverActive’s profile at www.sedarplus.ca. These forward-looking statements may be affected by risks and uncertainties in the business of OverActive and general market conditions, 9.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although OverActive has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not to be as anticipated, estimated or intended and such changes could be material. OverActive does not intend and do not assume any obligation, to update the forward-looking statements except as otherwise required by applicable law.

NON-IFRS MEASURES

This press release includes references to Adjusted EBITDA, Adjusted Gross Profit and Adjusted Gross Margin. These non-IFRS financial measures are not earnings or cash flow measures recognized by IFRS and do not have standardized meanings prescribed by IFRS. Our method of calculating these financial measures may differ from the methods used by other issuers and, accordingly, our definition of these non-IFRS financial measures may not be comparable to similar measures presented by other issuers.  Investors are cautioned that non-IFRS financial measures should not be construed as an alternative to net income determined in accordance with IFRS as indicators of our performance or to cash flows from operating activities as measures of liquidity and cash flows.

Adjusted EBITDA is defined by the Company net income or loss before income taxes, finance costs, finance income, depreciation and amortization, decrease in net present value of franchise obligations, foreign exchange gains / loss, assistance payments from Franchise League and government assistance, restructuring and business development costs, impairment charges, and share-based compensation. We believe that Adjusted EBITDA is a useful measure of financial performance because it provides an indication of the Company’s ability to capitalize on growth opportunities in a cost-effective manner, finance its ongoing operations and service its financial obligations. A reconciliation of Adjusted EBITDA to net income/loss may be found in the Company’s Management’s Discussion and Analysis for the three and nine-month periods ended September 30, 2024.

Adjusted Gross Profit is defined by the Company as revenue less the direct operating costs incurred by the Company in generating revenue. Direct operating costs include merchandise, sponsorship and agency expenses, live event expenses and the portion of team prize money revenue paid to team members but do not include other team operation expenses or other indirect operating costs. Adjusted Gross Profit Margin is the percentage that Adjusted Gross Profit represents of total revenue. We believe that Adjusted Gross Profit and Adjusted Gross Profit Margin are important measures of financial performance because they focus on the profitability of our core revenue-generating activities by excluding indirect operating costs. These metrics provide investors with a clearer view of the Company’s ability to deliver value to fans, sponsors, advertisers, and league partners, while maintaining sustainable margins in our primary operations. This distinction helps investors evaluate the underlying performance and efficiency of our revenue streams before considering broader expenses.

A reconciliation of revenue to Adjusted Gross Profit and Adjusted Gross Profit Margin for the periods indicated is as follows:

Three months ended 
September 30,

Nine months ended
September 30,

2024

2023

2024

2023

$

$

$

$

Revenue for the period

6,881

6,015

17,156

11,492

Normalized revenue for the period

6,881

3,998

17,156

10,819

Less:

Merchandise, sponsorship and agency expenses(1)

625

126

1,542

595

Live event expenses

510

888

2,157

1,999

Team prize money expense(2)

674

163

1,263

1,181

Total Direct Costs

1,810

1.178

4,962

3,775

Adjusted Gross Profit

5,071

4,837

12,194

7,717

Normalized Adjusted Gross Profit

5,071

2,820

12,194

7,044

Adjusted Gross Profit Margin

74 %

80 %

71 %

67 %

Normalized Adjusted Gross Profit Margin

74 %

71 %

71 %

65 %

Notes:

(1) These are selling, general and administrative operating costs that the Company treats as direct costs.

(2) Represents the portion of team operations constituting prize money the portion of team prize money revenue paid to team members.

The following tables presents a reconciliation of net loss to adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023:

Three months ended 
September 30,

Nine months ended
September 30,

2024

2023

2024

2023

$

$

$

$

Net income (loss) for the period

(1,790)

(1,993)

239

(11,170)

Income tax expense (recovery)

176

152

(334)

148

Depreciation

546

435

1,688

1,313

Amortization

318

51

744

159

Decrease in net present value of franchise obligations

(9,838)

Finance income

(64)

(44)

(222)

(182)

Finance costs

150

1,332

1,603

3,843

Foreign exchange (gain) loss

(70)

610

903

119

Share-based compensation

254

122

368

(55)

Restructuring and development costs

484

112

1,801

317

    Adjusted EBITDA

4

777

(3,048)

(5,508)

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Overactive Media Corp.

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Technology

Patient Engagement Technology Market to grow by USD 37.41 Billion from 2024-2028, driven by rising chronic disease cases and AI’s impact on market trends – Technavio

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NEW YORK, Nov. 27, 2024 /PRNewswire/ — Report on how AI is redefining market landscape – The global patient engagement technology market size is estimated to grow by USD 37.41 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 20.56%  during the forecast period. Increasing cases of chronic diseases is driving market growth, with a trend towards digitization of healthcare. However, stringent regulations on patient engagement solutions  poses a challenge. Key market players include agilon health Inc., ALLSCRIPTS HEALTHCARE SOLUTIONS INC., athenahealth Inc., CipherHealth, Computer Programs and Systems Inc., DrChrono Inc., eClinicalWorks LLC, Epic Systems Corp., GetWellNetwork Inc., International Business Machines Corp., Lincor Inc., Luma Health Inc., McKesson Corp., Medical Information Technology Inc., Medtronic Plc, Oneview Healthcare Plc, Oracle Corp., Solutionreach Inc., Sonifi Solutions Inc., and Tebra Technologies Inc..

AI-Powered Market Evolution Insights. Our comprehensive market report ready with the latest trends, growth opportunities, and strategic analysis- View Free Sample Report PDF

Forecast period

2024-2028

Base Year

2023

Historic Data

2018 – 2022

Segment Covered

Delivery Mode (On-premise solution and Web and cloud-based solution), End-user (Providers, Payers, and Individual users), and Geography (North America, Europe, Asia, and Rest of World (ROW))

Region Covered

North America, Europe, Asia, and Rest of World (ROW)

Key companies profiled

agilon health Inc., ALLSCRIPTS HEALTHCARE SOLUTIONS INC., athenahealth Inc., CipherHealth, Computer Programs and Systems Inc., DrChrono Inc., eClinicalWorks LLC, Epic Systems Corp., GetWellNetwork Inc., International Business Machines Corp., Lincor Inc., Luma Health Inc., McKesson Corp., Medical Information Technology Inc., Medtronic Plc, Oneview Healthcare Plc, Oracle Corp., Solutionreach Inc., Sonifi Solutions Inc., and Tebra Technologies Inc.

Key Market Trends Fueling Growth

The Patient Engagement Technology market is experiencing significant growth as payers, providers, and individual users seek to improve healthcare consumerism. Chronic diseases like diabetes and infectious diseases require ongoing management, making telehealth, wearable devices, and healthcare apps essential tools. Women’s health and mental health are also priority areas, with next-gen healthcare focusing on patient engagement, health literacy, and care teams. Technologists and healthcare professionals are developing software and hardware solutions, including patient portals, mobile applications, and web-based, cloud-based, and on-premise systems. Payers and providers are investing in AI technologies for preventive care, arthritis management, and clinical trials. The market caters to various populations, including diabetic patients, geriatric population, and smartphone users. Healthcare benefits are maximized through consulting, support and maintenance, billing and payments, patient education, and health and wellness initiatives. Strict regulations ensure secure patient information management, while virtual consultations and social management tools enhance patient engagement. 

The healthcare industry has been significantly transformed by digitization, with technologies like AI and cloud computing playing a pivotal role. This digital revolution brings numerous advantages, such as improved doctor-patient coordination, communication among multiple physicians, real-time health information access, and enhanced data security. The benefits extend to various sectors, including genomic research, big data analysis, organ-on-chips, genetic engineering, telemedicine, and 3D bioprinting. Healthcare systems must prioritize data-driven and digital strategies to increase patient awareness and education. An informed and engaged patient base is essential for better health outcomes. 

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Market Challenges

The Patient Engagement Technology market is growing rapidly as payers, providers, and individual users seek to improve healthcare experiences and outcomes. Challenges include engaging chronic disease patients, such as diabetics and geriatric population, through fitness apps, women’s health, mental health, and telehealth solutions. NextGen healthcare providers use software and hardware, including patient portals, mobile applications, and wearables, for preventive care and population health management. Healthcare consumerism demands patient education, care teams, and virtual consultations. Strict regulations ensure secure handling of patient information. Technologists develop AI technologies for preventive care, arthritis management, and clinical trials. Billing and payments, consulting, support and maintenance, and healthcare benefits are essential services. Patient engagement is key to managing deadly and infectious diseases, improving healthcare literacy, and enhancing the role of healthcare professionals, including physicians.The Health Insurance Portability and Accountability Act (HIPAA) of 1996 sets strict regulations for safeguarding patient data, known as Protected Health Information (PHI). Healthcare providers must sign a contract with patient engagement software vendors, committing to HIPAA compliance and PHI protection. HIPAA’s stringent rules limit advanced patient portal capabilities, falling short of efficient patient engagement solutions. These solutions should provide quick access to patient data, instant information transfer, and personalized communication. Despite HIPAA-supported patient portals, there is a need for more effective patient engagement technologies that meet these criteria.

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Segment Overview 

This patient engagement technology market report extensively covers market segmentation by

Delivery Mode1.1 On-premise solution1.2 Web and cloud-based solutionEnd-user 2.1 Providers2.2 Payers2.3 Individual usersGeography 3.1 North America3.2 Europe3.3 Asia3.4 Rest of World (ROW)

1.1 On-premise solution-  On-premises patient engagement solutions involve purchasing licenses or software copies for use on a company’s own servers and IT infrastructure. This setup offers enhanced security as healthcare data remains onsite. However, managing and maintaining on-premises infrastructure comes with significant costs, including hardware, software licenses, and IT personnel. The high expenses associated with on-premises solutions may hinder their adoption in the global patient engagement technology market during the forecast period. Additionally, any system malfunctions or downtime can result in substantial repair costs. Despite these challenges, the on-premises segment is predicted to grow moderately due to its ability to integrate with on-premises Electronic Health Records (EHR) systems.

Download complimentary Sample Report to gain insights into AI’s impact on market dynamics, emerging trends, and future opportunities- including forecast (2024-2028) and historic data (2018 – 2022) 

Research Analysis

The Patient Engagement Technology market is a dynamic and growing sector in the healthcare industry, focusing on enhancing communication and collaboration between Payers, Providers, and Individual Users. This market caters to various health needs, including Chronic Diseases, Fitness, Women’s Health, and Mental Health. It encompasses solutions for Healthcare Consumerism, Virtual Consultations, Clinical Trials, and Preventive Care. Technologies like AI, Cloud-Based, and On-Premise Software, Hardware (including mobile devices and wearables), and Patient Portals are integral to this market. Wearable devices and Healthcare apps enable users to monitor their health in real-time, while mobile applications facilitate virtual consultations and assessment timelines. Moreover, the market caters to specific health concerns, such as Chronic Diseases, Fitness, Women’s Health, and Mental Health, with tailored solutions. AI technologies play a crucial role in analyzing patient data and providing personalized care plans. The market’s growth is driven by the increasing demand for convenient, accessible, and cost-effective healthcare solutions.

Market Research Overview

The Patient Engagement Technology market is a rapidly growing sector in healthcare, focusing on enhancing communication and collaboration between Payers, Providers, and Individual Users. This market caters to various health conditions, including Chronic Diseases such as diabetes and Arthritis, Women’s Health, Mental Health, and Geriatric population. Fitness and Healthcare consumerism are significant drivers, with NextGen Healthcare and other technologists developing innovative solutions like telehealth, wearable devices, patient portals, mobile applications, and healthcare apps. These technologies facilitate assessment timelines, preventive care, and virtual consultations for Deadly and Infectious Diseases. AI technologies and Clinical trials are transforming patient care, offering personalized healthcare benefits to Diabetic Patients and other healthcare consumers. Healthcare professionals, including physicians, utilize these tools for Patient Education, Health and Wellness, Population Health Management, and In-patient Health Management. Despite the numerous advantages, the market faces strict regulations and social management challenges. The market offers various deployment models, including Web-Based, Cloud-Based, On-Premise, Software, and Hardware solutions, catering to mobile devices, wearables, and patient information management. Billing and Payments, Support and Maintenance, and Consulting services are essential components of this dynamic and evolving market.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

Delivery ModeOn-premise SolutionWeb And Cloud-based SolutionEnd-userProvidersPayersIndividual UsersGeographyNorth AmericaEuropeAsiaRest Of World (ROW)

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio

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