Financial Data and Key Metrics Changes - In Q4 2024, Allot Ltd. reported revenues of $24.9 million, a 2% increase year over year, while full-year revenues were $92.2 million, just 1% below 2023 levels [34][10] - The company achieved a non-GAAP net income of $5.6 million for the year, a significant recovery from a loss of $53 million in the previous year [12][37] - Non-GAAP gross margin improved to 69.7% in Q4 2024, up from 51.7% in the same quarter last year, and full-year gross margin was 70.6%, compared to 59.6% in 2023 [35][36] Business Line Data and Key Metrics Changes - The CCaaS (Cybersecurity as a Service) segment generated $4.8 million in revenue for Q4 2024, representing a 49% year-over-year increase and comprising 19% of total revenue for the quarter [34][11] - CCaaS annual recurring revenues (ARR) reached $18.2 million as of December 2024, reflecting a 43% year-over-year growth [11][34] Market Data and Key Metrics Changes - Allot Ltd. secured significant contracts with major telecom operators, including Verizon and Vodafone, enhancing its market presence and customer base [14][22] - The company reported a strong adoption of its cybersecurity solutions among service providers, indicating a growing demand for integrated security offerings [15][19] Company Strategy and Development Direction - Allot Ltd. is focusing on a security-first strategy, integrating cybersecurity and network intelligence to create a unified business structure [25][31] - The company aims to broaden its security offerings to provide comprehensive protection for customers, both on and off their networks [27][90] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's turnaround, highlighting a return to profitability and positive cash flow generation for the first time in several years [12][30] - The outlook for 2025 includes expectations for continued double-digit growth in CCaaS revenue and ARR, driven by new customer acquisitions and service launches [18][31] Other Important Information - Allot Ltd. reported a year-end cash position of $59 million, indicating a positive trend in cash flow management [12] - The company reduced operating expenses significantly, with non-GAAP OpEx at $15.6 million in Q4 2024, down 47% from the previous year [36] Q&A Session Summary Question: What is the driver of strong free cash flow generation for the quarter? - Management attributed the growth to continuous CCaaS expansion and new service launches with existing customers [40][41] Question: What caused the increase in support and maintenance revenue? - The increase was primarily due to strong results from the smart product line and catch-up on support agreements at year-end [44][45] Question: Why was product revenue down 55% year over year? - Product revenue fluctuations are common and depend on specific deals in each quarter, with CCaaS revenue increasing as a percentage of total revenue [49][52] Question: What is the expected growth rate for CCaaS in 2025? - Management aims to maintain high double-digit growth rates, similar to the previous year's performance [57][59] Question: How is Allot Ltd. addressing off-network security protection? - The company is investing in R&D to extend security offerings beyond the network, enhancing customer retention and satisfaction [90][91] Question: What is the outlook for the DPI legacy business? - Management expects similar revenue levels for the DPI business in 2025, with potential upside depending on new project wins [101][103] Question: What is the status of the CCaaS pipeline? - The company has a strong pipeline of opportunities for both new and existing customers, positioning itself well for growth [105][106]

Allot (ALLT) Q4 2024 Earnings Call February 25, 2025 09:00 AM ET Company Participants Kenny Green - Investor RelationEyal Harari - Chief Executive OfficerLiat Nahum - Chief Financial OfficerNehal Chokshi - Managing DirectorDavid Kanen - President Operator Ladies and gentlemen, thank you for standing by. Welcome to our fourth quarter twenty twenty four results conference call. All participants are present in listen only mode. Following management's formal presentation, instructions will be given for the ques ...

Strong Double-Digit SECaaS Growth and Significant Improvement in ProfitabilityHOD HASHARON, Israel, Feb. 25, 2025 /PRNewswire/ -- Allot Ltd. (NASDAQ: ALLT) (TASE: ALLT), a leading global provider of innovative network intelligence and security solutions for service providers and enterprises worldwide, today announced its unaudited financial results for the fourth quarter and full year of 2024.Financial Highlights for the Fourth Quarter Revenues of $24.9 million increased 2% year over year and 7% sequentiall ...

Core Insights - Allot Ltd. announced that its NetworkSecure offering is enhancing Verizon Business' cybersecurity capabilities to protect customers from mobile cyber threats [1][2] Company Overview - Allot Ltd. is a global provider of security-as-a-service (SECaaS) and network intelligence solutions for communication service providers and enterprises [1][3] - The company has over 500 mobile, fixed, and cloud service providers and more than 1000 enterprises using its solutions globally [3] Product Details - NetworkSecure is a monetizable, network-based solution that operates without requiring application installation by end customers [2] - It provides protection against various cyber threats, including viruses, malware, phishing, and ransomware attacks [2] - The solution features a user-friendly branded interface that offers alerts and reporting, enhancing brand loyalty [2] Strategic Collaboration - The collaboration with Verizon Business aims to enhance mobile security offerings for businesses, particularly targeting the mass market [2]

Core Insights - Allot Ltd. announced that its NetworkSecure offering is enhancing Verizon Business' cybersecurity capabilities to protect customers from mobile cyber threats [1][2] Company Overview - Allot Ltd. is a global provider of security-as-a-service (SECaaS) and network intelligence solutions for communication service providers and enterprises [1][3] - The company has over 500 mobile, fixed, and cloud service providers and more than 1000 enterprises using its solutions globally [3] Product Details - NetworkSecure is a monetizable, network-based solution that operates without requiring application installation by end customers, providing zero-touch, clientless operation [2] - The solution protects against various cyber threats, including viruses, malware, phishing, and ransomware attacks [2] - It features a user-friendly branded interface that offers alerts and reporting, enhancing brand loyalty among customers, particularly small and medium-sized businesses (SMBs) [2] Strategic Collaboration - The collaboration between Allot and Verizon Business aims to enhance mobile security offerings for businesses, addressing a mass market need [2]

Core Viewpoint - Allot Ltd. is set to report its fourth-quarter 2024 results on February 25, with expectations of slight revenue growth and a potential breakeven bottom line compared to a loss in the previous year [1][5]. Revenue Expectations - The Zacks Consensus Estimate for Allot's Q4 2024 revenues is $24.4 million, indicating a slight year-over-year increase [3]. - The growth in Security as a Service (SECaaS) revenues is anticipated due to an expanding customer base and increased adoption of security solutions among subscribers [3][4]. Earnings Performance - Allot has a strong earnings surprise history, having beaten the Zacks Consensus Estimate in three of the last four quarters, with an average earnings surprise of 28.2% [2]. - The consensus mark for this quarter is breakeven, contrasting with a loss of 43 cents per share reported a year ago [5]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for Allot, as it has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [6].

Company Overview - Allot is an Israeli company established in 1996, specializing in security solutions for mobile, fixed, and cloud service providers globally [1] - The company is currently transitioning to a Software-as-a-Service (SaaS) model [1] Investment Position - The analyst has a beneficial long position in Allot shares, indicating confidence in the company's future performance [2]

Core Viewpoint - Allot Ltd. will host a conference call to discuss its fourth quarter and full year 2024 results on February 25, 2025, at 9:00 AM ET, with unaudited financial results to be published prior to the call [1][2]. Company Overview - Allot Ltd. is a leading provider of innovative network-native cybersecurity and network intelligence solutions for communication service providers (CSPs) and enterprises [3]. - The company's solutions are deployed globally, enhancing value for customers through services such as network-native cybersecurity, network and application analytics, and traffic control [3]. - Allot's multi-service platforms are utilized by over 500 mobile, fixed, and cloud service providers, as well as over 1000 enterprises, with its security-as-a-service solution serving millions of subscribers worldwide [3].

Core Viewpoint - Allot Ltd. will host a conference call to discuss its fourth quarter and full year 2024 results on February 25, 2025, at 9:00 AM ET [1]. Group 1: Financial Results Announcement - The unaudited financial results for the quarter and year will be published prior to the conference call [2]. - Access to the conference call can be made through specific dial-in numbers for the US, UK, and Israel [2]. Group 2: Company Overview - Allot Ltd. is a leading provider of innovative cybersecurity and network intelligence solutions for communication service providers and enterprises globally [3]. - The company's solutions are deployed by over 500 mobile, fixed, and cloud service providers, as well as over 1000 enterprises [3]. - Allot's network-native security-as-a-service solution is utilized by millions of subscribers worldwide [3].

Core Insights - Three stocks are highlighted with strong momentum and a buy rank, including Argenx SE, Allot Ltd., and New Gold Inc. [1][2][3] Company Summaries - **Argenx SE (ARGX)**: - Zacks Rank: 1 - Current year earnings estimate increased by 13.6% over the last 60 days - Share price increased by 14.3% over the last three months, outperforming the S&P 500's 2.3% gain - Momentum Score: A [1] - **Allot Ltd. (ALLT)**: - Zacks Rank: 1 - Current year earnings estimate increased by 85.7% over the last 60 days - Share price surged by 114.5% over the last three months, significantly outperforming the S&P 500's 2.3% gain - Momentum Score: B [2] - **New Gold Inc. (NGD)**: - Zacks Rank: 1 - Next year earnings estimate increased by 7.7% over the last 60 days - Share price rose by 25.5% over the last six months, compared to the S&P 500's 7.6% gain - Momentum Score: B [3]