Alarum Technologies Ltd. (NASDAQ:ALAR) Q1 2024 Earnings Conference Call May 24, 2024 8:30 AM ET Company Participants Shachar Daniel - Chief Executive Officer Shai Avnit - Chief Financial Officer Conference Call Participants Kris Tuttle - Caterpillar Investments Brian Kinstlinger - Alliance Global Partners Operator Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Alarum Technologies' First Quarter of 2024 Corporate Update Conference Call. [Operator Instructions] This conference i ...

Investment Thesis - Alarum Technologies is an Israeli company focused solely on its enterprise data collection solutions business, NetNut, which now accounts for 96% of its revenue [2] - NetNut provides IP proxy services and data collection tools that enable enterprises to access websites anonymously and scrape data, essential for accurate business analysis [3] - The company is positioned to benefit from the growing trends in big data and AI, with expectations of 90% revenue growth for NetNut next year, while currently trading at an 18x forward P/E, which is considered low for a SaaS company [2][4] - Alarum's stock has seen a significant increase of 1500% over the past year, primarily due to the exit from unprofitable business lines, allowing for clearer financial reporting of NetNut's performance [2][4] - The stock is rated a STRONG BUY with a target price of $40 [2][13] Business Overview - NetNut's services are crucial for enterprises as they help avoid misleading data collection and website access issues caused by IP address restrictions [3] - The company has launched several new products, including the SERP Scraper API and AI data collector, which are expected to drive future growth [6] Financial Performance - Alarum reported strong Q1 2024 results, with NetNut growing 139% year-over-year, gross margins at 78%, and net profits increasing to $1.4 million from a loss of $0.7 million a year ago [4] - The company has improved its cash position, with $15.1 million on the balance sheet, indicating no future cash flow problems [4] Market Growth - The data collection and labeling market is projected to grow from $2.2 billion to $17 billion from 2023 to 2030, representing a CAGR of 28.9%, benefiting companies like NetNut [5] - The residential IP proxy market is expected to grow at a CAGR of 11.5% from 2024 to 2029, still above GDP growth [5] Valuation - A 5-year DCF analysis suggests a target price of $40, based on a high initial revenue growth rate of 90% and a terminal P/E multiple of 25x, which is justified for a SaaS company with recurring revenues [8] - Alarum's current valuation is considered attractive given its growth potential and market position [13]

John M Lund Photography IncAlarum's (NASDAQ:ALAR) core IPPN business continues to go from strength to strength, and the company is progressively adding new services, which should help to support growth in coming years. Ongoing profit margin gains were particularly impressive in the first quarter. The last time I wrote about Alarum I suggested that the company's growth was underappreciated. This continues to be the case, even though the stock is now up over 30% since then. Alarum's forward PE ratio is pr ...

First quarter record revenues of $8.4 Million, up 47% year over year; IFRS gross margin climbed to 78% compared to 66% for the first quarter of last year IFRS net profit was $1.4 million while non-IFRS net profit surged to $2.8 million; Earnings per American Depository Share (EPS) of $0.23 and $0.45, respectively Adjusted EBITDA reached a record of $3.2 million Subsidiary NetNut's revenues in the first quarter jumped 139% year over year; Net Retention Rate ("NRR") increased to 1.66 TEL AVIV, Israel, May 21 ...

The Company Will Host a Conference Call on Tuesday, May 21, 2024 at 08:30 a.m. Eastern Time Tel Aviv, Israel, May 06, 2024 (GLOBE NEWSWIRE) -- Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) ("Alarum" or the "Company"), a global provider of internet access and web data collection solutions, will release its financial results for the first quarter of 2024, on Tuesday, May 21, 2024, before the Nasdaq market opens. Mr. Shachar Daniel, Chief Executive Officer, and Mr. Shai Avnit, Chief Financial Officer, will hos ...

piranka Alarum Technologies Ltd. (NASDAQ:ALAR) is an IP Proxy Network vendor currently in the process of capitalizing on the opportunity created by AI, by introducing a range of data collection and labelling solutions. While Alarum's share price has increased dramatically lately, the company's valuation is still reasonable, particularly in light of its rapid growth and recent transition to profitability. With Alarum's NetNut business currently generating strong growth, and potentially benefitting from c ...

Subsidiary NetNut's revenues surged approximately 140% in the first quarter of 2024 compared to the equivalent period in 2023  Tel Aviv, Israel, April 08, 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 three months ended on March 31, 2024. Based on a preliminary, unaudited review, Alarum anticipates reporting strong p ...

eternalcreative Alarum Technologies Inc (NASDAQ:ALAR) reported its latest quarterly results capping off a transformative year for the Israel-based software company. A decision to exit the cybersecurity business and other non-core segments in 2023 to focus on its "NetNut" web data collection platform has paid off evidenced by sharply higher sales and profitability. The introduction of new artificial intelligence-based tools has represented a new growth driver. The company with a market cap of just $120 ...

Financial Data and Key Metrics Changes - Revenue for the full year of 2023 totaled $26.5 million, a 39% increase compared to $18.5 million in 2022, with fourth-quarter revenue of $7.1 million compared to $5.1 million in Q4 2022 [15][16] - Gross profit for 2023 increased to $18.8 million, with a gross margin exceeding 75%, compared to $10.1 million in 2022 [16][18] - IFRS net profit from continuing operations in Q4 2023 reached $1.7 million, compared to a net loss of $3 million in Q4 2022 [17] - Adjusted EBITDA for 2023 was $5.2 million, compared to an adjusted EBITDA loss of $8.5 million in 2022 [18] Business Line Data and Key Metrics Changes - The company focused on its NetNut business line, which generated significant revenue growth, with revenues increasing from $6.3 million in 2021 to $21.3 million in 2023 [9][10] - The company transitioned away from its consumer business, leading to a net profit of $1.1 million in Q3 2023 and a record net profit of $1.7 million in Q4 2023 [7][8] Market Data and Key Metrics Changes - NetNut's Net Revenue Retention (NRR) rate was 153% as of December 31, 2023, indicating strong customer retention and expansion [13] - The company entered new market segments, including AI-powered sales intelligence and fintech, expanding its customer base [10][11] Company Strategy and Development Direction - The company plans to increase market share in the IPPN vertical and penetrate the data collection and labeling market with new products [76] - New product offerings include the Google SERP Scraper API and the Website Unblocker, aimed at enhancing data collection capabilities [11][12] - The company aims to leverage its extensive network and proprietary technology to meet the evolving demands of the AI market [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining current operating margins and indicated no immediate need for significant investments to support growth [23][24] - The company is focused on balancing growth and profitability while investing in innovative products to address gaps in the AI market [60][62] Other Important Information - The company reported a cash and cash equivalent balance of $10.9 million as of December 31, 2023, compared to $3.3 million in 2022 [18] - The company has two patents protecting its technology and a robust network infrastructure as key competitive advantages [62] Q&A Session Summary Question: What are the expectations for operating expenses and investments? - Management indicated that operating expenses as a percentage of revenue will remain stable, with no significant investments anticipated in the near future [23][24] Question: Can you provide customer counts for NetNut? - Management noted a 20% year-over-year growth in customer numbers, with a diverse customer base contributing to revenue growth [25][27] Question: How do new products like the SERP Scraper and Website Unblocker drive growth? - Management stated that these products are expected to enhance the product portfolio and attract new customers, with significant revenue anticipated in 2025 [29][32] Question: What are the growth governors for 2024? - Management highlighted the existing team and infrastructure as key factors, with no immediate bottlenecks anticipated [36][37] Question: Are there any pricing pressures observed? - Management reported no significant pricing pressure from competitors, although customers continue to negotiate for better prices [45][48] Question: What is the company's plan regarding acquisitions? - Currently, the company has all necessary resources in-house but may explore acquisitions in the future if opportunities arise [41][42] Question: What are the chief concerns going forward? - Management expressed concerns about unforeseen technological changes and challenges in the market [72][73]

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