Financial Data and Key Metrics Changes - Revenue for the six months ended June 30, 2024, was $15.7 million, a decline of $9.3 million or 37% compared to $25 million for the same period in 2023, primarily due to terminated and less profitable contracts in the professional services business [27][28] - Gross profit margin improved to 9.5% compared to a negative 7.9% for the same period in 2023, reflecting effective management and absence of one-off costs recorded in the first half of 2023 [28] - Total operating expenses for the six months ended June 30, 2024, were $16.5 million, a decline of approximately 90% compared to $57.5 million reported for the same period in 2023 [29] Business Line Data and Key Metrics Changes - The Secure Data Fabric platform is positioned as the primary growth engine, while the legacy professional services and cyber consultancy business provides a stable revenue stream [10][11] - The professional services business has historically delivered margins in the 50% to 20% range, while the Secure Data Fabric is expected to achieve margins in the 80% to 90% range [44] Market Data and Key Metrics Changes - Demand for the Secure Data Fabric product is driven by the explosion of AI-driven data, rising regulatory pressures, and the high cost of maintaining legacy systems [47] - The company is currently working with leading European banks on KYC processes and exploring expansion into other products like transaction monitoring [50] Company Strategy and Development Direction - The company has undergone a strategic evolution, transitioning to focus on high-margin software-driven solutions that align with long-term growth objectives [40] - The management has taken decisive steps to streamline operations, close underperforming businesses, and reduce headcount to focus on core strengths [18][19] Management Comments on Operating Environment and Future Outlook - Management believes that the trusted relationships built over decades with blue-chip clients will be key to driving the Secure Data Fabric business [20] - The company aims to position itself as a fully channel-ready leader poised for scalable growth and market expansion by the close of 2025 [52] Other Important Information - The company has significantly reduced liabilities and improved its balance sheet, creating greater flexibility for strategic investments [19] - Cash flow showed a decrease of $2 million, attributed to a mix of reasons including cash outlay for operating expenses [32] Q&A Session Summary Question: Can you talk about your competitors and the advantages that you have over them? - HUB's Secure Data Fabric can be implemented in just a few months with relatively low deployment and maintenance costs, powered by military-grade cybersecurity [35][36] Question: Can you explain the software versus hardware segment of the business? - HUB has transitioned to focus on high-margin software-driven solutions, moving away from hardware and services [40][41] Question: How do you see the long-term margin profile of the company? - The Secure Data Fabric segment is poised to be the primary growth driver for HUB, with expected margins in the 80% to 90% range [44][45] Question: What are the main drivers behind the demand for HUB's product? - Demand is fueled by the explosion of AI-driven data, rising regulatory pressures, and the high cost of maintaining legacy systems [47] Question: Can you elaborate on HUB's secure data customer base? - HUB is currently working with leading European banks on KYC processes and has a pipeline that includes various industries grappling with large-scale data and regulatory pressures [50][52]

Financial Performance - Revenues for H1 2024 were $15.7 million, down from $25.0 million in H1 2023, reflecting a strategic shift away from less profitable segments [2] - Gross margin improved to 9.5% in H1 2024 from -7.6% in H1 2023, indicating a successful transition to higher-margin business areas [2] - Operating expenses decreased by 71% to $16.5 million in H1 2024 from $57.5 million in H1 2023, showcasing effective cost management [2] - Operating loss improved by 74%, or $44.5 million, compared to the previous year, highlighting the benefits of streamlined operations [2] Strategic Initiatives - The company is focusing on a transformation journey to streamline operations and enhance profitability, with a new leadership team executing a strategic turnaround plan [3] - The anticipated launch of the "HUB 360" approach aims to provide a comprehensive suite of services with projected margins of 50-60% [5] - The Secured Data Fabric platform is identified as the primary growth engine, consolidating data securely and enabling compliance [6][7] Market Position and Demand - There is strong and growing demand for HUB's solutions, particularly in sectors such as healthcare, payment companies, and transportation [8] - The company is well-positioned to capitalize on emerging opportunities, with a significant increase in backlog and RFPs from clients [7][9] Operational Efficiency - HUB has made significant strides in restructuring, closing underperforming businesses, and optimizing operations through targeted headcount reductions [11] - The company has successfully eliminated high-cost debt, enhancing financial flexibility for growth investments [13] Future Outlook - Looking ahead, HUB is poised for continued growth driven by its Secured Data Fabric platform, with a solid foundation established for capitalizing on market demand [15] - The company aims to address the growing compliance burden faced by banks with innovative solutions that meet regulatory standards [16]

TEL AVIV, Israel, Nov. 29, 2024 (GLOBE NEWSWIRE) -- via IBN -- HUB Cyber Security Ltd. (NASDAQ: HUBC) (“HUB Security” or the “Company”), a leading provider of cybersecurity solutions and advanced data fabric, announces an agreement with AGP to reduce by 70% its $5.7 million convertible note obligations by way of amicably negotiated settlement, as part of the Company’s strategic efforts to strengthen its balance sheet and reduce overall debt. The Company has also obtained an additional $1 million investment ...

TEL AVIV, Israel, Nov. 27, 2024 (GLOBE NEWSWIRE) -- via IBN –  HUB Cyber Security Ltd. (NASDAQ: HUBC) (“HUB Security”; or the “Company”), a leading provider of cybersecurity solutions and advanced data fabric, has scheduled a conference call with management on Monday, December 2, 2024, at 9:00 a.m. ET, to review the first half 2024 results. Conference Call Details Date and Time: Monday, December 2, 2024, at 9:00 a.m. ET Call-in Information: Interested parties can access the conference call by dialing (844) ...

TEL AVIV, Israel, Nov. 05, 2024 (GLOBE NEWSWIRE) -- via IBN – HUB Cyber Security Ltd. (NASDAQ: HUBC) (“HUB Security”; or the “Company”), a leading provider of cybersecurity solutions and advanced data fabric, is pleased to provide an update on several initiatives and developments as it continues to enhance its market position and deliver value to its stakeholders. The Company anticipates releasing its financial results for the six months ended June 30, 2024, by the end of November. In addition, HUB Securit ...

HUB Security to Present at the 2024 ThinkEquity Conference Tel Aviv, Israel, October 30, 2024 – PRISM MediaWire – HUB Cyber Security Ltd. (NASDAQ: HUBC) ("HUB Security" or the "Company"), a leading provider of cybersecurity solutions and advanced data fabric, today announced that it will be participating in The ThinkEquity Conference on October 30, 2024, at the Mandarin Oriental Hotel in New York. Mandarin Oriental · New York The ThinkEquity Conference gathers institutional investors, corporate clients, and ...

TEL AVIV, Israel, Aug. 19, 2024 (GLOBE NEWSWIRE) -- via IBN – HUB Cyber Security Ltd. (NASDAQ: HUBC), a developer of confidential computing cybersecurity solutions and advanced data fabric ("HUB Security" or the "Company"), is pleased to announce the successful completion of a $3.3 million private placement from non-U.S. investors. This investment is in the form of convertible notes with a conversion price of $0.70 per share. As part of the transaction, the Company has also issued warrants with an exercise ...

TEL AVIV, Israel, Aug. 16, 2024 (GLOBE NEWSWIRE) -- HUB Cyber Security Ltd. (NASDAQ: HUBC), a leading provider of cybersecurity solutions ("HUB Security" or the "Company"), today released its financial results for the fiscal year ended December 31, 2023. HUB has successfully retained a robust client base and has implemented a clear and ambitious growth strategy to establish itself as a leader in the Secured Data Fabric (SDF) sector. With top-tier talent onboard, the Company believes it is now poised for a d ...

Core Points - HUB Security Ltd has received a notification from Nasdaq regarding non-compliance with the Minimum Bid Price Requirement due to its ordinary shares closing below $1.00 for 30 consecutive business days [2][4] - The company's business operations remain unaffected by this notification, and it plans to monitor its share price to regain compliance [3][4] - The company has an initial compliance period of 180 calendar days, ending on January 13, 2025, to meet the Minimum Bid Price Requirement [4] - If compliance is not regained within the initial period, the company may be eligible for an additional 180-day compliance period under certain conditions [5] - Failure to regain compliance within the granted periods may lead to delisting of the ordinary shares, pending an appeal [5]

Company Overview - HUB Cyber Security Ltd. specializes in confidential computing cybersecurity solutions and advanced data services, established in 2017 by veterans of the Israeli Defense Forces [3] - The company operates in over 30 countries, providing innovative cybersecurity computing appliances and a wide range of cybersecurity services [3] Recent Developments - The company is on track to release its annual financial reports within the next few weeks [1] - HUB Cyber Security has secured two deals with governmental entities, indicating a commitment to strategic expansion and enhancement of its offerings [2] - Significant progress is anticipated in its secure data fabric vertical by the end of the next quarter [2]