Company Overview - Alarum Technologies (NASDAQ: ALAR) offers a unique value proposition for investors seeking alternative exposure to the artificial intelligence industry [1] - The company is well-positioned to benefit from the increasing demand in the AI sector [1] Investment Strategy - The analysis emphasizes a disciplined framework that combines fundamental analysis with macroeconomic factors [1] - Focus is placed on companies with robust, consistent, and predictable cash flows, which allows for more accurate valuation and sensitivity analysis [1] - The investment approach is sector and asset class agnostic, indicating a broad search for value and alpha across markets [1] Market Context - The analyst has experienced multiple market cycles since pre-2008, which informs their investment insights [1] - Attention to macroeconomic developments is highlighted as a key factor that can drive market cycles and affect valuation discounts or premiums [1] Community Engagement - The goal is to provide actionable ideas and exchange important insights within the investment community [1] - The analyst expresses a desire to engage with both novice and seasoned investors [1]

Group 1 - Alarum Technologies held a conference call to discuss the results of Q2 2025, featuring CEO Shachar Daniel and CFO Shai Avnit [1][3] - The call included an overview of the quarter by the CEO, followed by a financial review from the CFO, and concluded with a Q&A session [3] Group 2 - The conference call may contain forward-looking statements regarding the company's plans, objectives, and future performance [4][5] - Discussions included guidance on future strategy, sustainable growth potential, estimated margins, and long-term profitability [5]

Financial Data and Key Metrics Changes - The company reported second quarter revenue of $8,800,000, a slight decrease from $8,900,000 in the previous year, attributed to a different mix of customers, particularly the growth in the AI segment [6][18] - Net profit for the quarter was $300,000, compared to a net loss of $400,000 in the same period last year [21] - Adjusted EBITDA was $1,000,000, down from $3,400,000 in the previous year [21] - Non-IFRS gross margin decreased to 63% from 78% year-over-year [19] Business Line Data and Key Metrics Changes - The company is experiencing a shift in customer base, with significant growth in the AI segment, which is replacing customers from other segments [18] - The net retention rate (NRR) was reported at 0.98, reflecting the transition in customer mix [18] Market Data and Key Metrics Changes - The company is seeing increased demand from major AI players and e-commerce companies, leading to larger deal sizes [8] - A new large-scale AI data project is expected to contribute approximately $3,000,000 in revenue per quarter, although initial profitability margins will be low [19][23] Company Strategy and Development Direction - The company is focused on investing in infrastructure and expanding its IP proxy network to capture long-term value from major AI-driven customers [18][15] - The strategy includes sacrificing short-term profitability for long-term revenue growth and higher profits [15] - The company aims to position itself as a central player in the evolving AI landscape by enhancing its product offerings and capabilities [12][14] Management's Comments on Operating Environment and Future Outlook - Management highlighted the dynamic and unpredictable nature of the AI market, urging investors to evaluate performance over multiple quarters rather than on a quarterly basis [13] - The company is optimistic about the long-term opportunities presented by the increasing value of data and the demand for data collection solutions [10][12] - The guidance for 2025 anticipates revenue of $12,800,000, representing a 78% year-over-year increase [23] Other Important Information - The company's cash and liquid investments stood at approximately $25,000,000, providing a solid foundation for strategic investments [22] - The company is actively recruiting talent to support its R&D efforts and meet growing customer demands [42] Q&A Session Summary Question: Clarification on the large customer ramp in Q3 - Management explained that lower margins are due to the new product's infrastructure costs and the scale of the project, which is currently more expensive [28][29] Question: What is the product and how is it different? - The product involves a significant amount of bandwidth and data volume, requiring advanced technology infrastructure [38] Question: Broader customer base usage trends - Management noted a significant increase in demand from AI and data intelligence customers, with a strong pipeline of new logos [41] Question: Customer lifetime value and stability - Management indicated that the current customer base is expected to provide significant growth, with a focus on long-term retention and value [50] Question: Expected contribution from the new project - Management expressed confidence in the projected $3,000,000 revenue for Q3, while noting the unpredictability of future demand [59]

Financial Data and Key Metrics Changes - The company reported second quarter revenue of $8.8 million, a slight decrease from $8.9 million in the same period last year, attributed to a shift in customer mix towards the AI segment [16][19] - Non-IFRS gross margin for 2025 was 63%, down from 78% in 2024, reflecting the impact of strategic investments and lower margins from new projects [17] - Non-IFRS net profit was $300,000 for 2025, compared to a net loss of $400,000 in 2024 [19] - Adjusted EBITDA for 2025 was $1 million, down from $3.4 million in 2024 [19] Business Line Data and Key Metrics Changes - The company is experiencing significant growth in the AI segment, which is replacing customers from other segments, leading to a net retention rate (NRR) of 0.98 [16] - The company has launched new projects with major AI and e-commerce platforms, indicating a shift towards larger deal sizes and more significant revenue potential [7][8] Market Data and Key Metrics Changes - The demand for data collection services is increasing, driven by the need for training data for AI models, positioning the company favorably within the evolving market landscape [6][9] - The company is focusing on expanding its customer base, which now includes major tech giants and emerging startups, indicating a broadening market reach [7] Company Strategy and Development Direction - The company is strategically reinvesting earnings into scaling operations, expanding infrastructure, and broadening its IP proxy network to capture long-term value from major AI-driven customers [16][13] - The focus is on building a robust talent pool and developing a cooperative field of data collection products designed for the AI era, aiming to cross-sell to existing customers [11][13] Management's Comments on Operating Environment and Future Outlook - Management highlighted the dynamic and unpredictable nature of the AI market, urging investors to evaluate the company's performance over multiple quarters rather than on a quarter-by-quarter basis [12] - The company anticipates revenue for 2025 to range from $12.8 million, representing a 78% year-over-year increase, with adjusted EBITDA expected to be around $1.1 million [22] Other Important Information - The company has a strong balance sheet with cash and liquid investments of approximately $25 million, allowing for strategic investments while maintaining a focus on sustainable value creation [14][21] - The company is currently experiencing a transition phase, with operating expenses increasing to $5.4 million due to higher employee-related costs, particularly in R&D [18] Q&A Session Summary Question: Clarification on the large customer ramp in Q3 - Management explained that lower margins are due to the new product's infrastructure costs, which are currently high due to the scale of the project [27][28] Question: Infrastructure costs and margin recovery - Management indicated that significant volume increases would be necessary to recover margins, and improvements in cost structure are expected as the project scales [31][32] Question: Broader customer base usage trends - Management noted a significant increase in demand from AI and data-driven customers, with a strong pipeline of new logos expected [36][38] Question: Customer lifetime value and stability - Management expressed optimism that the new AI-driven customer base could lead to higher customer lifetime value and stability over time [42][47] Question: Contribution of the large customer to Q2 results - Management confirmed that the large customer has been ramping up and is already contributing a respectable amount to revenues [51] Question: Visibility into projected revenues - Management stated that there is a level of confidence in the projected $3 million revenue for Q3, with ongoing demand expected [56][57]

Core Insights - Alarum Technologies Ltd. reported Q2 2025 revenues of $8.8 million, a slight decrease from $8.9 million in Q2 2024, with a net profit of $0.3 million and Adjusted EBITDA of $1.0 million [1][9][13] Business Highlights - The company is experiencing strong demand for data from major global players in the AI segment, leading to expanded collaborations with significant AI and e-commerce companies [2][3] - Alarum is investing in infrastructure and operations to support market demand while maintaining operational efficiency [4] - The company anticipates substantial revenue growth in Q3 2025, driven by a new large-scale AI data project expected to contribute approximately $3 million [5][15][16] Financial Performance - For the first half of 2025, total revenue was $15.9 million, down from $17.3 million in H1 2024, primarily due to reduced consumption from large customers [9] - Gross profit for Q2 2025 was $5.4 million, compared to $6.8 million in Q2 2024, with operating expenses increasing to $5.4 million from $4.2 million [11][12] - As of June 30, 2025, shareholders' equity increased to $29.1 million from $26.4 million at the end of 2024 [14] Market Dynamics - The AI market is undergoing significant transformation, with many companies still defining their business models, which may lead to fluctuations in demand for Alarum's services [5][22] - The company is witnessing a shift in customer segments, with strong growth in the AI vertical, while other segments are declining, resulting in a Net Retention Rate of 0.98 [7][29] Future Outlook - The company expects Q3 2025 revenues to be approximately $12.8 million, representing a 78% year-over-year increase, with Adjusted EBITDA projected at around $1.1 million [15] - Alarum's strategic collaborations with major technology players are seen as a significant step to strengthen its position in the AI data collection market [17]

Core Viewpoint - Alarum Technologies Ltd. is set to release its financial results for the second quarter of 2025 on August 28, 2025, before the Nasdaq market opens, indicating a focus on transparency and communication with investors [1]. Financial Results Announcement - The financial results will be discussed in a conference call hosted by the CEO and CFO on August 28, 2025, at 8:30 a.m. ET, followed by a Q&A session, highlighting the company's commitment to engaging with stakeholders [2]. - Participants are required to register before joining the call, which emphasizes the company's organized approach to investor relations [2][3]. Company Overview - Alarum Technologies Ltd. is a global provider of web data collection solutions, utilizing a hybrid proxy network that ensures data collection is conducted anonymously and at scale from public sources [4]. - The company's infrastructure is designed to guarantee privacy, quality, stability, and speed, showcasing its technological advancements in the industry [4].

Core Viewpoint - Alarum Technologies Ltd. has revised its revenue and Adjusted EBITDA outlook for Q2 2025, reflecting increased demand and usage of its data collection products and services from existing customers [1][2]. Revenue Outlook - The company now estimates Q2 2025 revenue to be approximately $8.8 million ±3%, an increase from the previous estimate of $7.9 million ±3% [2]. - This represents a revenue increase of about 11.4% from the prior estimate [2]. Adjusted EBITDA Outlook - Alarum expects to report adjusted EBITDA ranging from $1.0 million to $1.5 million, up from the previous range of $0.5 million to $0.8 million [2]. - This indicates a potential increase of 100% to 200% in adjusted EBITDA compared to the earlier guidance [2]. Market Dynamics - The market in which Alarum operates is described as highly dynamic and unpredictable, with ongoing volatility expected [2]. - The company is preparing for potential fluctuations in market conditions [2]. Financial Reporting - The company is unable to reconcile its estimated adjusted EBITDA to net profit due to uncertainties regarding certain expenses [3]. - The financial impact of these expenses is dependent on various factors and could be material to the company's financial statements [3]. Update Policy - This update is in accordance with the company's internal policy to issue updates when quarterly revenue outlooks deviate by at least 10% from previous estimates [4].

Core Insights - The company reported a revenue of $7.1 million for Q1 2025, aligning with guidance, while net profit was $0.4 million and adjusted EBITDA reached $1.3 million, exceeding expectations [1][12] - The demand for scalable, high-quality data is accelerating, driven by the growth of AI technologies and eCommerce platforms [2][8] - The company is strategically investing in scalable infrastructure and next-gen technologies to meet rising demand for AI-ready data [1][3] Financial Performance - Q1 2025 revenue decreased by 15% year-over-year from $8.4 million in Q1 2024 [13] - Gross profit for Q1 2025 was $4.8 million, with a gross margin of 67.5%, down from 78.5% in Q1 2024 [9][13] - Total operating expenses increased to $4.5 million in Q1 2025 from $4.0 million in Q1 2024, primarily due to higher research and development costs [13] Market Position and Strategy - The company expanded strategic partnerships with major AI and eCommerce players, including a top Asian marketplace and a European AI firm, for large-scale data labeling and model fine-tuning [8] - Alarum is positioned to play a key role in the emerging market for high-quality, scalable data infrastructure, essential for AI model training [8][29] - The company aims to build a robust data access backbone for the AI era, focusing on long-term value delivery for stakeholders [4][8] Future Outlook - The company anticipates Q2 2025 revenues to be around $7.9 million, with adjusted EBITDA expected between $0.5 million and $0.8 million [12] - The net retention rate (NRR) reached 1.13 as of March 31, 2025, indicating strong customer revenue growth [8][25] - Early results from strategic investments and positive pipeline visibility support an optimistic outlook for the second quarter of 2025 [8][12]

Core Viewpoint - Alarum Technologies Ltd. is set to release its financial results for Q1 2025 on May 29, 2025, before the Nasdaq market opens, indicating a focus on transparency and communication with investors [1]. Financial Results Announcement - The financial results for the first quarter ended March 31, 2025, will be disclosed before the market opens on May 29, 2025 [1]. - A conference call will be hosted by the CEO and CFO on the same day at 8:30 a.m. ET to discuss the results and business outlook, followed by a Q&A session [2]. Conference Call Details - Participants can join the live call by dialing the provided toll-free or international numbers, with a reminder to connect five minutes prior to the start [3]. - A replay of the call will be available after 11:30 a.m. ET on the same day, accessible through the company's website [3]. Company Overview - Alarum Technologies Ltd. is a global provider of web data collection solutions, utilizing a hybrid proxy network for anonymous data collection from public web sources [4]. - The company's infrastructure is designed to ensure privacy, quality, stability, and speed, featuring proprietary reflection technology and a network of servers with ISP partners worldwide [4].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Alarum Technologies Ltd. securities during the specified Class Period of the upcoming lead plaintiff deadline on April 15, 2025 [1]. Group 1: Class Action Details - Investors who purchased Alarum securities between March 14, 2024, and August 26, 2024, may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - A class action lawsuit has already been filed, and interested parties can join by submitting a form or contacting the law firm [3][6]. - The deadline to move the Court to serve as lead plaintiff is April 15, 2025, with the lead plaintiff acting on behalf of other class members [3]. Group 2: Law Firm Credentials - Rosen Law Firm emphasizes the importance of selecting qualified counsel with a successful track record in securities class actions, highlighting its own achievements, including the largest securities class action settlement against a Chinese company at the time [4]. - The firm has been ranked No. 1 by ISS Securities Class Action Services for the number of settlements in 2017 and has consistently ranked in the top 4 since 2013, recovering hundreds of millions for investors [4]. - In 2019, the firm secured over $438 million for investors, and its founding partner was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020 [4]. Group 3: Case Allegations - The lawsuit alleges that Alarum made false and misleading statements regarding its effectiveness in retaining and expanding customer engagements, which impaired its ability to generate consistent revenue growth [5]. - It is claimed that Alarum's business and financial prospects were overstated, leading to materially false and misleading public statements throughout the Class Period [5]. - The lawsuit asserts that when the true details became known, investors suffered damages as a result [5].