Hazal Ak/iStock via Getty Images Investment Thesis Alarum Technologies Ltd. (ALAR) has hit a rough patch. This is a company that took investors by storm in 2024, with its share price up more than 1,000% at one point. However, now Alarum Technology has lost its momentum. And even though the stock looks cheap, at approximately 12x forward EBITDA and with 20% of its market cap made up of cash, I remain neutral on this name, as I've done for some time. Rapid Recap Alarum is a business with a fanatic shareholder ...

Financial Data and Key Metrics - Q2 2024 total revenue increased to $8 9 million, up 27 2% from $7 million in Q2 2023 [18] - NetNut revenue in Q2 2024 reached $8 7 million, up 72% from $5 million in Q2 2023 [18] - Non-IFRS gross margin for Q2 2024 increased to 78 5%, up from 71% in Q2 2023 [18] - Adjusted EBITDA in Q2 2024 reached a record $3 4 million, more than three times higher than the same quarter last year [6] - Cash and cash equivalents at the end of Q2 2024 stood at $21 6 million, up from $10 9 million at the end of 2023 [20] Business Line Performance - NetNut, the Enterprise Internet Access arm, contributed $8 7 million of the total $8 9 million revenue in Q2 2024 [6] - NetNut revenue for the first six months of 2024 reached $16 8 million, a 98% YoY increase from $8 4 million in the same period of 2023 [6] - The company launched new products, Web Unblocker and AI Data Collector, which are expected to drive long-term growth in the data collection and labeling market [11] Market Performance - The company added major global brands to its customer base, including a Fortune 100 merchandise retailer and a leading social media platform with over 1 billion active users [9][10] - The IP Proxy Network (IPPN) segment is recognized as a top performer in the industry, with significant infrastructure improvements allowing for scalable and profitable growth [10] - The data collection and labeling market is expected to grow rapidly, with the company generating initial revenues from the Web Unblocker product in Q2 2024 [11] Strategy and Industry Competition - The company is focused on three growth engines: increasing market share in the IPPN segment, penetrating the data collection and labeling market, and providing data insights [8] - Investments in AI and analysis capabilities are expected to enhance the company's data products and maintain its position as an industry leader [12] - The company aims to establish the broadest data collection and insight offering, leveraging its technological innovations and global expansion [8] Management Commentary on Market Environment and Future Outlook - Q3 2024 revenues are projected to show YoY growth but may be lower than Q2 due to market dynamics affecting some customers [14] - Positive trends in monthly revenue growth were observed from June to August, driven by strong customer retention and new customer acquisitions [14] - The company expects to surpass full-year 2023 revenue within the first three quarters of 2024, driven by continued investment in new products and market expansion [15] Other Important Information - The company provided quarterly guidance for the first time, with Q3 2024 revenue expected to range between $7 million plus/minus 3% and adjusted EBITDA between $0 8 million to $1 million [21] - Non-cash finance expenses of $2 5 million were recorded in Q2 2024 due to the fair value increase of warrants issued in 2019-2020 [19] Q&A Session Summary Question: Revenue Drop in Q3 Despite High Retention Rates - The revenue drop in Q3 is attributed to a temporary slowdown in usage by some customers, but growth trends resumed in June and continued into August [28][30] - No customers were lost, but some reduced their bandwidth usage, leading to lower revenues [30] Question: Customer Concentration Metrics - In the first half of 2024, the top 5 customers generated $6 8 million, representing 8 3% of revenue per customer on average [34] - The next 38 customers generated $7 2 million, with each contributing an average of 1 15% of total revenue [34] Question: Data Collection Market Opportunity - The company is focusing on three pillars: IP proxy network infrastructure, data collection and labeling, and data insights [41] - The Web Unblocker and AI Data Collector are key products driving growth in the data collection market [41] Question: Guidance Certainty for Q3 2024 - The $7 million revenue target for Q3 2024 is based on a 90% confidence interval, with a plus/minus 3% range [43] Question: Go-to-Market Strategy for Larger Customers - The company has shifted its sales strategy to target enterprise customers, leveraging its network performance and scalability [46] - Some Fortune 100 customers were acquired through inbound inquiries, reflecting the company's growing brand awareness [46] Question: AI Data Collection and M&A Targets - The company is exploring M&A opportunities in data collection, labeling, and AI-driven data insights, with a focus on accelerating growth through strategic acquisitions [48] Question: Macro Trends and Future Volatility - The company expects continued growth in Q4 2024, supported by strong customer retention and new customer acquisitions, although no formal guidance was provided [52] Question: Transparency and US Election Business - The company increased transparency by releasing additional KPIs and quarterly guidance as part of its growth strategy [56] - The company confirmed it has no business related to the US election [56]

Core Insights - Alarum Technologies reported earnings per share (EPS) of 41 cents, exceeding the analyst estimate of 31 cents [1] - The company generated revenue of $8.88 million, which was 0.63% lower than the analyst estimate of $8.94 million [1] Financial Performance - EPS of 41 cents represents a positive performance compared to analyst expectations [1] - Revenue of $8.88 million indicates a slight miss against the forecasted revenue [1]

Core Insights - Alarum Technologies Ltd. reported record revenues of $17.3 million for the first half of 2024, marking a 36% increase from $12.7 million in the same period of 2023 [5][6] - The company is focusing on expanding its market share in the IP Proxy Network segment and enhancing its data collection capabilities through new products like WebUnblocker [2][3] - NetNut revenues reached $16.7 million in the first half of 2024, achieving a remarkable 99% year-over-year growth [6][10] Financial Performance - Total revenue for Q2 2024 was $8.9 million, a 27% increase from $7.0 million in Q2 2023, driven primarily by the growth of the NetNut enterprise internet access business [6][7] - Gross profit for H1 2024 was $13.4 million, with a gross margin of 77.7%, compared to 65.3% in H1 2023 [5][6] - Operating expenses decreased significantly to $8.1 million in H1 2024 from $17.0 million in H1 2023, mainly due to the shift from consumer internet access to enterprise services [7][8] Cash Flow and Profitability - Cash flow from operating activities reached $6.3 million in H1 2024, a substantial improvement from $(0.1) million in H1 2023 [9] - The company ended H1 2024 with $21.6 million in cash and equivalents, up from $3.8 million in the previous year [5][9] - Net profit for H1 2024 was $1.1 million, a significant turnaround from a loss of $8.4 million in H1 2023 [5][6] Customer Metrics and Market Position - The Net Retention Rate (NRR) reached 1.59 as of June 30, 2024, indicating strong customer retention and growth [3][21] - New customers onboarded in Q2 2024 generated approximately $400,000 in their first month, which is 60% higher than Q1 2024 [3] - The company anticipates that NetNut revenues will exceed the full-year 2023 revenue of $21.2 million within the first nine months of 2024 [10] Future Outlook - Alarum expects continued year-over-year revenue growth in Q3 2024, with estimated revenues of $7 million ±3% [10] - The company is committed to investing in AI and analysis capabilities to enhance its data products and services [2][3] - The management aims to maintain strong net customer retention rates in line with its growth strategy [2][3]

There's no denying that the recent selloff — especially in the technology space — rattled investor nerves. At one point, it seemed as if the innovation sector could do absolutely no wrong. Of course, that's usually about the time when circumstances go awry. Sure enough, a meltdown ensued, driving down several popular tech stocks. However, that could also spell opportunity for the daring. To be clear, I'm not trying to make light of volatility. Certainly, when the market loses double-digit percentage points ...

Tel Aviv, Israel, July 31, 2024 (GLOBE NEWSWIRE) -- Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) (“Alarum” or the “Company”), a global provider of internet access and web data collection solutions, today announced that the company will be participating in the upcoming Canaccord Genuity 44th Annual Global Growth Conference. Alarum’s management is scheduled to present on Tuesday, August 13, 2024, at 4 p.m. EST. A live and archived webcast of the presentation will be available on the "Investors" section of th ...

Core Viewpoint - Alarum Technologies Ltd. experienced a significant stock sell-off following preliminary Q2 results that fell slightly below consensus estimates, yet the company has shown remarkable growth over the past year, with shares up more than 1000% [2][4]. Financial Performance - Preliminary Q2 revenue is anticipated to be $8.8 million, reflecting a 25% year-over-year growth, slightly below Wall Street's estimate of $8.9 million [4]. - Estimated cash flow from operations for Q2 is $3.1 million, a slight decrease from $3.2 million in Q1, but an improvement from the cash bleed experienced in the same period last year [4]. - The Q2 growth rate of 25% represents a slowdown compared to the 47% growth rate in Q1, indicating a normalization of growth against tougher comparables [4]. Business Segments - The NetNut platform is a major focus for the company, accounting for 90% of total revenues, following the exit from the enterprise cybersecurity segment in 2023 [5]. - Q2 standalone revenue for NetNut is expected to be $7.6 million, marking a 70% year-over-year increase, suggesting that overall results are being impacted by smaller peripheral services [5]. Customer Metrics - The Net Retention Rate (NRR) for Q1 was 166%, up from 153% in the previous quarter, indicating successful expansion of existing customer relationships through cross-selling and up-selling [6]. - An NRR above 100% suggests that the company is retaining and expanding its customer base despite some churn [6]. Market Position and Outlook - Alarum Technologies has a market capitalization of approximately $220 million, characterized by strong growth, recurring profitability, and a leadership position in its niche software category [8]. - The company is expected to leverage its customer base and global footprint to explore new growth areas, including commercialized data sets and AI-integrated insights [8]. - Current trading at an EV to forward EBITDA multiple of 15 is favorable compared to peers, with an annual revenue growth consensus estimate of 38% for Alarum, significantly higher than competitors [8]. Future Expectations - The company is anticipated to continue its growth trajectory into 2025 and beyond, potentially accelerating EBITDA and making shares more attractively priced [8]. - Investors are looking forward to final Q2 figures, with margins and cash flow being key monitoring points [9].

Cash and cash equivalents balance reaches all-time high of approximately $21.7 million NetNut's revenues estimated to grow more than 95% YoY in the first half of 2024 Tel Aviv, Israel, July 10, 2024 (GLOBE NEWSWIRE) -- Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) ("Alarum" or the "Company"), a global provider of internet access and web data collection solutions, today provided preliminary key financial metrics guidance for the six months ended on June 30, 2024. Based on a preliminary, unaudited review, ...

Cash and cash equivalents balance reaches all-time high of approximately $21.7 million NetNut’s revenues estimated to grow more than 95% YoY in the first half of 2024 Tel Aviv, Israel, July 10, 2024 (GLOBE NEWSWIRE) -- Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) (“Alarum” or the “Company”), a global provider of internet access and web data collection solutions, today provided preliminary key financial metrics guidance for the six months ended on June 30, 2024. Based on a preliminary, unaudited review, ...

What’s making big money in 2024 … the “mania” that Louis Navellier is trading … Jonathan Rose gears up for earnings season … introducing Tom Gentile, Pattern TraderDo you know what’s making a lot of money this year?If your answer is “AI,” you’re only partially correct.The answer I’m looking for is “trading.” Specifically, momentum-based trading.This market approach boils down to “buy what’s been winning and sell what’s been losing.”Well, here in 2024, “what’s been winning,” which is AI, has continued winnin ...