I wrote about NICE Ltd. (NASDAQ: NICE ) ( OTCPK:NCSYF ), with their CCaaS (Contact Center as a Service) and FCC (Financial Crime and Compliance) software, at the beginning of February. I found it a compelling case, with the stock Analyst's Disclosure: I/we have a beneficial long position in the shares of NICE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I h ...

Industry Overview - The Internet-Software & Services industry is closely tied to the economy, with estimates declining due to tariffs, inflation, and interest rate uncertainties [1][7] - Companies are focusing on cost-saving measures, reducing operating expenses to maintain profitability despite revenue challenges [1][7] - Capital investments are being limited, with only a few companies making significant investments [1] Key Industry Themes - Companies like Criteo (CRTO) and RingCentral (RNG) are performing well by leveraging AI for revenue growth and client retention through subscription models [2][18] - The industry is characterized by a diverse range of players, leading to varied performance outcomes [2] - The Zacks Industry Rank for the Internet-Software & Services sector is 203, placing it in the bottom 17% of nearly 250 classified industries, indicating limited growth prospects [6][8] Economic Impact - The level of technology adoption by businesses is crucial for growth, with some companies advancing in AI while others lag behind [7] - Economic slowdowns lead to reduced expenditures on software and services, impacting industry performance [7] - Geopolitical tensions and tariff changes contribute to market volatility and uncertainty, complicating the operating environment [7] Financial Performance - The industry has shown strong stock market performance, returning 20.5% over the past year, outperforming the broader sector and S&P 500 [11] - The industry is currently trading at a forward 12-month P/E ratio of 24.96X, which is a 15.2% premium to the S&P 500 [14] Company Highlights Criteo S.A. (CRTO) - Criteo's AI-driven platform connects advertisers with retailers, helping to drive commerce despite macroeconomic challenges [18][20] - The company has maintained a client retention rate close to 90% and reported an 18% growth in Retail Media contributions [21][22] - Despite a projected decline in earnings due to the loss of a major customer, Criteo's existing customer spending has increased significantly [21][23] RingCentral Inc. (RNG) - RingCentral's AI-powered solutions have led to an average recurring revenue (ARR) exceeding $2.5 billion [26] - The company has successfully integrated its services into the Salesforce CRM ecosystem and secured significant customer wins [26] - RingCentral's shares have decreased by 26.5% over the past year, with analysts projecting revenue growth of 4.6% in 2025 [27]

Allot (ALLT) Q1 2025 Earnings Call May 12, 2025 09:00 AM ET Company Participants Kenny Green - Co-Founder & DirectorEyal Harari - Chief Executive OfficerLiat Nahum - Chief Financial OfficerNehal Chokshi - Managing DirectorRory Wallace - Founder & CIO Operator Ladies and gentlemen, thank you for standing by. Welcome to Allot's First Quarter twenty twenty five Results Conference Call. As a reminder, this conference is being recorded. You should have all received by now the company's press release. If you have ...

Allot (ALLT) Q1 2025 Earnings Call May 12, 2025 09:00 AM ET Company Participants Kenny Green - Co-Founder & DirectorEyal Harari - Chief Executive OfficerLiat Nahum - Chief Financial OfficerNehal Chokshi - Managing DirectorRory Wallace - Founder & CIO Operator Ladies and gentlemen, thank you for standing by. Welcome to Allot's First Quarter twenty twenty five Results Conference Call. As a reminder, this conference is being recorded. You should have all received by now the company's press release. If you have ...

Financial Data and Key Metrics Changes - The company reported a revenue of $23.2 million for Q1 2025, representing a 6% year-over-year increase [22] - Non-GAAP net income was $800,000, compared to a net loss of $900,000 in Q1 2024 [24] - Positive operating cash flow of $1.7 million was reported for the quarter, with cash and short-term deposits totaling $60.7 million at the end of Q1 2025 [24] Business Line Data and Key Metrics Changes - Revenue from the CCaaS segment was $5.1 million, up 49% year-over-year, comprising 22% of total revenue [22] - CCaaS annual recurring revenue (ARR) reached $21.2 million, reflecting a 55% increase year-over-year [7][22] - Non-GAAP gross margin remained stable at 70.4%, with expectations for continued growth as CCaaS revenue increases [23] Market Data and Key Metrics Changes - Verizon became the largest contributor to CCaaS revenues in Q1 2025, driven by the launch of their mobile service and existing fixed wireless access customers [12][32] - The company is experiencing strong traction in partnerships with major telecom operators, including Vodafone and Verizon, which are expected to drive future growth [10][12] Company Strategy and Development Direction - The company is focused on a "Security First" strategy, aiming to enhance cybersecurity offerings and expand partnerships with telecom operators [6][19] - There is a strong emphasis on converting a growing pipeline of opportunities into new partnerships and agreements, particularly in the CCaaS and smart product segments [10][16] - The launch of new products, such as the OfNet Secure solution, is part of the strategy to provide comprehensive cybersecurity services [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving profitable growth in 2025, with expectations for CCaaS revenue and ARR to grow by around 50% or more year-over-year [20] - The company is confident in its ability to capitalize on the increasing demand for cybersecurity solutions, particularly in the consumer and SMB segments [19] - Management highlighted the importance of execution in translating the growing pipeline into actual business [50] Other Important Information - The company has made significant progress in expanding its partnership with Verizon Business, which now includes a broader customer base for its cybersecurity solutions [10][12] - The Terra III multi-service platform has generated interest among Tier 1 telecom operators, contributing to a robust pipeline of opportunities [15][16] Q&A Session Summary Question: Did Verizon Business Mobile Internet Security contribute to Q1 CCaaS ARR results? - Management indicated that the official launch occurred in mid-April, resulting in minimal contribution for Q1, with expectations for significant growth in Q2 [27][28] Question: What was the driver for the significant CCaaS ARR growth? - The growth was attributed to new agreements and service launches, particularly with Vodafone and other carriers, which are starting to contribute to revenue [29] Question: Is there a possibility that CCaaS ARR growth could be less than 50%? - Management acknowledged potential variability due to reliance on service providers' marketing efforts but expressed confidence in achieving around 50% growth [30][31] Question: Did Verizon become the largest contributor to CCaaS revenue? - Yes, Verizon's initial launch of mobile services and traction from fixed wireless access made it the number one account for CCaaS revenue [32] Question: Are there opportunities to cross-sell CCaaS solutions to smart business customers? - Management confirmed that there are synergies and potential for cross-selling between smart products and CCaaS solutions [36] Question: Will Verizon's bundling of security services influence other operators? - Management believes that Verizon's success will likely prompt competitors to consider similar bundling strategies [43][44] Question: Can you provide updates on the partnership with Vodafone? - Management confirmed that revenues from Vodafone agreements are already contributing, with expectations for further growth as the agreements are fully realized [54][55]

Allot Ltd. (NASDAQ:ALLT) Q4 2024 Earnings Conference Call February 25, 2025 9:00 AM ET Company Participants Kenny Green - EK Investor Relations Eyal Harari - Chief Executive Officer Liat Nahum - Chief Financial Officer Conference Call Participants Nehal Chokshi - Northland Capital Markets David Kaynan - Kaynan Wealth Management Operator Ladies and gentlemen, thank you for standing by. Welcome to Allot Ltd. Fourth Quarter 2024 Results Conference Call. All participants are present in listen-only mode. Followi ...

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 ...