Senstar Technologies (SNT) Q4 2024 Earnings Call April 23, 2025 05:00 PM ET Company Participants Kim Rogers - Managing DirectorFabien Haubert - Chief Executive OfficerAlicia Kelly - Chief Financial OfficerKen Liddy - Financial Advisor Operator Ladies and gentlemen, thank you for standing by. Welcome to Senstar Technologies Fourth Quarter and Full Year twenty twenty four Results Conference Call. All participants are at present in a listen only mode. Following management's formal presentation, we will have a ...

Financial Data and Key Metrics Changes - Revenue for Q4 2024 increased by 14.5% to $10,200,000 compared to $8,900,000 in Q4 2023 [19] - Gross margin improved to 64.5%, up from 56.6% in the same quarter last year, driven by product mix and price increases [21] - EBITDA for Q4 2024 reached $1,600,000 compared to $450,000 in Q4 2023 [22] - For the full year 2024, total revenue was $35,800,000, a 9% increase from $32,800,000 in 2023 [23] - Net income for 2024 was $2,600,000, compared to a net loss of $1,300,000 in 2023 [26] Business Line Data and Key Metrics Changes - Significant growth was reported in utility sales, particularly in data centers across all regions [20] - The corrections vertical saw important wins, driven by demand for advanced security technologies [11] - The transport sector experienced major wins in Q4 2024, particularly in airport infrastructure [13] - The energy vertical faced revenue decline in 2024, but remains competitive [14] Market Data and Key Metrics Changes - North America accounted for 40.2% of revenue in Q4 2024, up from 36% in the previous year [20] - EMEA's revenue share increased to 46% from 36% year-over-year [20] - APAC's revenue share decreased to 11% from 14% [20] - For the full year 2024, North America maintained a 40.5% revenue share, while EMEA's share decreased to 30.6% from 35% [24] Company Strategy and Development Direction - The company focuses on business development to expand global market share across key verticals [15] - Investments in key territories have resulted in double-digit growth in the USA and EMEA markets [17] - The strategy includes leveraging AI and advanced perimeter solutions to address modern security needs [11][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the structural growth in security needs for critical infrastructure [31] - The company aims to maintain growth across North America, EMEA, and APAC regions [32] - Management refrained from providing specific forward-looking statements but emphasized ongoing efforts to sustain growth [33] Other Important Information - Operating expenses for Q4 2024 were $5,100,000, up 7% from $4,800,000 in the prior year [21] - The company reported a cash balance of $20,600,000 with no debt as of December 31, 2024 [27] Q&A Session Summary Question: What growth drivers for 2024 look positive for 2025? - Management did not provide specific forward-looking statements but noted a positive trend in security needs [31] Question: Is there any region that you're more encouraged about? - Management expressed satisfaction with growth in North America, EMEA, and APAC [32] Question: Can you comment on future optimism? - Management reiterated that they are not providing forward-looking statements but will strive to maintain current growth trends [33] Question: Are there new opportunities in the United States? - Management acknowledged the high demand for security but did not link it to political issues [36]