Alarum Technologies Announces Second Quarter 2024 Results

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]