Summary of Allot's Growth Conference Call Company Overview - **Company**: Allot - **Industry**: Cybersecurity and Networking Solutions - **Focus**: Cybersecurity services for consumers and small businesses, leveraging partnerships with communication service providers (CSPs) to enhance customer protection and network security [3][4] Core Business Segments - **Networking Solutions**: Represents approximately 70% of Allot's business, expected to show stable growth with slight increases [4][5] - **Cybersecurity as a Service (SECaaS)**: Accounts for about 30% of the business, projected to grow over 60% year-over-year, with a previous growth rate of over 50% [4][5] Growth Strategy - **Investment in Cybersecurity**: Significant growth driven by investments in cybersecurity, which is becoming a critical need for consumers and small businesses [6][7] - **Partnerships with CSPs**: Expansion of sales teams to establish new partnerships with CSPs, allowing access to millions of subscribers [8][12] - **Service Expansion**: Initial projects with CSPs often lead to further expansion into other network segments, enhancing revenue potential [9][10] - **Innovation in Cybersecurity**: Continuous R&D investment to enhance cybersecurity offerings, including new products like OffNet and firewall solutions [11][26] Recent Developments - **New Partnerships**: Notable partnership with Comcast Ventures, focusing on a telco-as-a-service model that emphasizes security as a key differentiator [16][17] - **Market Dynamics**: Increased awareness of cybersecurity needs among consumers and small businesses, driven by rising threats such as AI-based fraud [32][34] Financial Performance - **Revenue Growth**: Q3 reported a 14% growth rate in top-line revenue, with a strong contribution from cybersecurity services [5][29] - **Recurring Revenue**: Approximately 70% of Allot's revenue is recurring, providing good visibility for future growth [29] Competitive Landscape - **Sales Cycle**: The sales cycle for CSPs is typically long (12-24 months), with a focus on larger carriers that can monetize cybersecurity services effectively [12][13] - **Market Positioning**: Allot's established relationships and reputation in the networking space facilitate entry into cybersecurity offerings [13][44] Challenges and Barriers - **Implementation Barriers**: Initial setup and integration of Allot's technology into CSP networks can be resource-intensive, posing a barrier to quick adoption [38][39] - **Competitive Pressures**: CSPs face competition from lower-tier cybersecurity solutions, necessitating differentiation through comprehensive offerings [40][41] Future Outlook - **Long-term Goals**: Allot aims to grow its ARR to $100 million and beyond, focusing on enhancing cybersecurity offerings and expanding market reach through additional channels [48][49] - **AI and Cybersecurity**: Emphasis on leveraging AI for real-time threat detection and response, addressing the evolving landscape of cyber threats [51][53] Key Performance Indicators - **ARR Growth**: Security ARR is the main KPI for measuring progress, with consistent growth expected as new services and partnerships develop [14][31] This summary encapsulates the key points discussed during the conference call, highlighting Allot's strategic focus on cybersecurity, growth initiatives, and market dynamics.

Core Viewpoint - Hagens Berman has filed a second securities class action against Coupang, Inc. (NYSE: CPNG), expanding the Class Period to include investors who purchased securities between May 7, 2025, and December 16, 2025, due to concerns over the company's disclosure controls and a significant data breach [1][2]. Group 1: Allegations and Investigations - The firm is investigating Coupang's statements regarding its disclosure controls, cybersecurity protocols, and transparency related to a breach that allegedly allowed a former employee to access sensitive customer data [2][3]. - The complaint highlights that Coupang provided assurances about its security measures and risk factors from May 6, 2025, until November 4, 2025, despite the occurrence of a significant data breach [4][5]. Group 2: Data Breach Details - On November 29, 2025, Coupang disclosed unauthorized access to personal data involving approximately 4,500 customer accounts, later revealing that about 33.7 million accounts were affected [5]. - Following the breach, Coupang announced a compensation plan of 1.685 trillion won (over $1 billion) on December 29, 2025, aimed at restoring customer trust [6]. Group 3: Financial Impact - The market capitalization of Coupang decreased by over $8 billion between the publication of a Reuters article on November 30, 2025, and the filing of the lawsuit [6]. - The company warned of potential material financial losses due to the breach, including revenue loss and regulatory penalties [5].

Group 1 - SailPoint, Inc. (NASDAQ:SAIL) provides security software for managing and protecting digital identities of employees, contractors, and automated systems [1] - A zero-click vulnerability named "EchoLeak" was discovered in Microsoft 365 Copilot, marking the first known zero-click attack on an AI agent, which highlights the cybersecurity risks associated with AI technologies [1] - NZS Capital, LLC mentioned SailPoint in its third quarter 2025 investor letter, indicating ongoing concerns about cybersecurity in the AI era [1] Group 2 - There is a belief that while SailPoint has investment potential, other AI stocks may offer greater upside potential and less downside risk [2] - The report suggests looking for undervalued AI stocks that could benefit from Trump-era tariffs and the trend of onshoring [2]

Core Viewpoint - A class action lawsuit has been filed against Coupang, Inc. for allegedly making false statements regarding its cybersecurity and regulatory compliance during the specified Class Period [1][3]. Group 1: Lawsuit Details - The lawsuit is on behalf of investors who acquired Coupang securities from May 7, 2025, to December 16, 2025 [1][2]. - Investors have until February 17, 2026, to seek appointment as lead plaintiff representatives [2]. Group 2: Allegations - The complaint claims that Coupang had inadequate cybersecurity measures, which increased the risk of a data breach and potential regulatory scrutiny [3]. - Revelations starting in November 2025 indicated that a former employee accessed sensitive customer information for nearly six months undetected, leading to significant declines in Coupang's stock price [4].

Core Insights - Oakmark Fund's fourth-quarter 2025 investor letter indicates a focus on capital appreciation through investments in large-cap US companies, with the fund outperforming the S&P 500 Index by returning 4.78% compared to the index's 2.66% [1] Company Overview - CDW Corporation (NASDAQ:CDW) is identified as a leading information technology solutions provider, with a market capitalization of $17.641 billion [2] - The stock closed at $134.60 per share on January 13, 2026, with a one-month return of -6.33% and a 52-week gain of 28.20% [2] Performance and Strategy - CDW Corporation's consolidated net sales for Q3 2025 were reported at $5.7 billion, reflecting a 4% increase from Q3 2024 [4] - The company has transitioned from a technology hardware reseller to a comprehensive IT solutions provider, focusing on software and services, which has positively impacted its margins [3] - The strong corporate culture at CDW, exemplified by its skilled account managers and technology consultants, has been crucial in attracting and retaining customers [3] Market Position - Despite CDW's significant role in the IT ecosystem, the challenging environment for IT service and hardware resellers has negatively affected its share price, presenting a buying opportunity at a compelling valuation [3] - CDW Corporation is not among the 30 most popular stocks among hedge funds, although the number of hedge fund portfolios holding the stock increased from 44 to 48 in the last quarter [4]

Core Viewpoint - China has mandated that domestic companies refrain from using software developed by several U.S. cybersecurity firms [1] Group 1 - The directive affects a range of U.S. cybersecurity companies, indicating a significant shift in China's approach to cybersecurity and foreign technology [1] - This move may impact the operations and market presence of the affected U.S. companies within China [1] - The decision reflects ongoing tensions between the U.S. and China regarding technology and cybersecurity issues [1]

Core Insights - CrowdStrike is acquiring Seraphic Security, a California-based firm specializing in browser runtime security, for an undisclosed price [1] - The acquisition aims to enhance CrowdStrike's Falcon platform by integrating Seraphic's browser-native protection, addressing a significant gap in cybersecurity [4] Company Overview - Seraphic Security, founded in 2020, operates in the enterprise browser security market and has developed patented technology to secure browsers [1][3] - The company's solution allows secure access to SaaS and private web applications from both managed and personal devices, eliminating the complexity and cost of VDI and VPN [2] Technology and Integration - Seraphic's technology is designed to be invisible to end-users and supports all browsers and SaaS desktop applications like Teams, Discord, Slack, and WhatsApp [3] - The integration will enable advanced security measures directly within popular browsers such as Chrome, Edge, Safari, and Firefox [4] Strategic Benefits - The acquisition will empower CrowdStrike's security operations center (SOC) by analyzing extensive endpoint data alongside real-time browser telemetry [5] - Key benefits of the integration include securing AI applications within the browser, implementing zero trust policies, and preventing data leaks with AI-driven content filtering [6] Financial Aspects - The financial terms of the acquisition include a combination of cash and stocks subject to vesting conditions, expected to finalize in CrowdStrike's first fiscal quarter of 2027 [7]

Core Viewpoint - Frequency Holdings Inc. has filed a Form 15 to remove its voluntary SEC reporting, transitioning to direct reporting to OTC Markets, which aims to streamline operations and focus on growth [1][4][5]. Group 1: Company Transition - The company remains publicly traded under the symbol FRQN and continues to disclose information, as it was always a voluntary SEC reporter [3]. - This decision allows Frequency to provide regular financial and corporate disclosures directly through OTC Markets, ensuring continued access for investors [4]. Group 2: Strategic Intent - CEO Rick Jordan emphasized that this move is intended to reduce administrative burdens and redirect efforts towards business development [5][7]. - Frequency has already posted two years of financial statements to comply with OTCID and plans to publish its 2025 year-end reports as scheduled [5]. Group 3: Future Plans - The company is exploring options for full electronic quoting through a registered market maker to enhance market access for retail investors, aligning with its long-term goal of qualifying for higher-tier markets [6]. - Jordan expressed aspirations for NASDAQ listing, indicating that SEC reporting would resume if the company reaches that milestone [7]. Group 4: Company Overview - Frequency Holdings is a holding company focused on high-growth sectors such as cybersecurity, AI, digital identity, and IT infrastructure, with its lead brand, ReachOut, aiming to establish a recognized name in cybersecurity services for small and medium-sized businesses [8]. Group 5: Leadership Profile - Rick Jordan, the founder and CEO, is noted for his expertise in cybersecurity and has a background in leading companies through growth transformations, contributing to national cyber policy discussions [9].

Enrollment and Growth - Employer-affiliated enrollment is a key driver, now representing about 34% of total enrollment, up from roughly 31% in Q1 of fiscal 2025 [1] - Average total degree enrollment increased by 4.1% to 85,600 students, contributing to a net revenue rise of 2.9% year over year to $262 million [3][7] Financial Performance - Adjusted EBITDA increased by 7.2% to $75.2 million, with the adjusted EBITDA margin expanding to 28.7% from 27.5% a year earlier [2] - Net income attributable to the company was $15.5 million, or $0.40 per diluted share, compared to $46.4 million, or $1.23 per diluted share, in the previous year [8] Capital Position and Dividend - The company ended the quarter with no outstanding debt and $218.1 million in cash and marketable securities, announcing an inaugural quarterly cash dividend of about $0.21 per share [6][10] - Capital allocation priorities focus on reinvesting in the business to support student outcomes and operational efficiency while maintaining liquidity [11] Cybersecurity and Regulatory Environment - A cybersecurity incident related to Oracle E-Business Suite led to $4.5 million in Q1 incident-related costs, with further expenses possible but covered by insurance [5][16] - Management discussed recent developments in the regulatory environment, stating that no new material areas of risk were introduced and that all University of Phoenix programs for which metrics were provided were "passing" [12] AI Initiatives - The company is pursuing AI initiatives to prepare students to be AI-fluent and to drive operational excellence, including AI-assisted appointment setting and 24/7 AI chat assistance for students [15] Fiscal 2026 Outlook - Management reiterated guidance for fiscal 2026, expecting net revenue of $1.025 billion to $1.035 billion and adjusted EBITDA of $244 million to $249 million [5][17]

Core Insights - DSG Global has appointed Lavonne Moon as Managing Director and Practice Leader for Technology, AI, and Cybersecurity to enhance its capabilities in digital transformation and cyber leadership [1][4] - Lavonne Moon brings over 20 years of experience in leadership advisory and recruiting, having successfully guided over 3,000 executive searches [3][4] - The firm emphasizes the importance of technology, AI, and cybersecurity leadership as critical to shaping enterprise strategies in a rapidly evolving technological landscape [5] Company Overview - DSG Global is an award-winning executive search and consulting firm focused on helping organizations cultivate the talent and leadership necessary for navigating current and future challenges [5] - The firm aims to assist clients in reaching their full human potential and maintaining a competitive edge in a fast-changing environment [5] Leadership Experience - Lavonne Moon has held senior leadership roles at notable firms including Robert Half, CTPartners, Booz Allen Hamilton, Avanade, and Eaton, a $25 billion Fortune 500 company [4] - At Eaton, she led a global executive recruiting team and was involved in significant executive hiring during a CEO transition, overseeing numerous senior leadership engagements annually [4] Strategic Importance - The appointment of Lavonne Moon is seen as a strategic move to strengthen DSG Global's advisory capabilities in navigating complexities related to AI advancements and cyber risks [4] - Moon's understanding of emerging technologies is expected to provide clients with a competitive advantage in business outcomes [2][4]