Financial Data and Key Metrics Changes - The company reported revenue of $24.1 million for Q2 2025, representing a 9% year-over-year increase [22] - The CCaaS (Cybersecurity as a Service) ARR (Annual Recurring Revenue) was $6.4 million, up 73% year-over-year, comprising 27% of total revenue [22] - Non-GAAP gross margin improved to 73.4% from 70.6% in the same quarter last year [23] - Non-GAAP operating income was $1.2 million compared to a loss of $1 million in Q2 2024 [24] - Positive operating cash flow of $4.4 million was reported, with cash and equivalents totaling $72 million as of June 30, 2025 [25] Business Line Data and Key Metrics Changes - The CCaaS segment is highlighted as the primary growth engine, with significant contributions from new customer acquisitions and upselling existing services [5][7] - The successful launch of Verizon's MyDisPlan contributed positively to the CCaaS growth, indicating strong market traction [6][8] Market Data and Key Metrics Changes - The company is seeing strong momentum in the cybersecurity services market, particularly among major telecom operators [7] - New contracts with telecom operators in Poland and Panama indicate expanding market presence and service adoption [9][10] Company Strategy and Development Direction - The company is focused on sustainable, profitable growth through its cybersecurity as a service strategy, aiming to increase the number of telecom partners and expand service offerings [10][12] - The launch of the SG Terra 3 platform is expected to enhance service delivery and customer engagement [16][17] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential, citing improved visibility and a strong backlog of opportunities [20] - The company anticipates a strong year-end CCaaS ARR growth of 55% to 60% for 2025 [19] Other Important Information - A follow-on equity offering raised $46 million, which was used to repay convertible notes and strengthen the balance sheet, leaving the company with no debt [24][25] - The company expects overall revenues for 2025 to be between $98 million and $102 million, positioning itself for profitable growth [19] Q&A Session Summary Question: What has been driving the strong ARR growth metrics? - The strong ARR growth is attributed to new customer acquisitions, increased adoption of existing services, and upselling new applications [29] Question: What has been driving the improved gross margin performance? - Improved gross margin is due to a favorable revenue mix, particularly from software expansion deals [31] Question: Can you provide more color on the MyBiz opportunity? - The MyBiz plan is expected to ramp up over the next two to three years, with high attach rates due to its default inclusion in the service [33][35] Question: Can you discuss the large European telecom deal? - The deal involves network intelligence and cybersecurity solutions, expected to generate revenue primarily in 2026 and 2027 [37][39] Question: Are there any macro impacts on sales cycles? - There are no significant macro impacts observed, and the demand is driven by the new Terra 3 platform [63]

Financial Data and Key Metrics Changes - The company reported revenues of $23.2 million for the quarter, representing a 6% year-over-year increase [19] - Non-GAAP net income was $800,000, compared to a net loss of $900,000 in the same quarter last year [21] - Positive operating cash flow of $1.7 million was achieved, with cash and short-term investments totaling $60.7 million at the end of the quarter [21] 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 [19] - CCaaS's annual recurring revenue (ARR) reached $21.2 million, reflecting a 55% increase year-over-year [6][19] - Non-GAAP gross margin remained stable at 70.4%, with expectations for continued growth as CCaaS revenue increases [20] Market Data and Key Metrics Changes - Verizon became the largest contributor to CCaaS revenues in Q1, with significant growth expected from their new mobile service [30] - The company is experiencing strong traction in partnerships with major telecom operators like Vodafone and Verizon, which are expected to drive future growth [11][52] Company Strategy and Development Direction - The company is focused on a "Security First" strategy, aiming to enhance cybersecurity offerings and expand partnerships with telecom providers [5][8] - 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 [9][15] - The launch of new products, such as the OfNet Secure solution, is part of the strategy to provide comprehensive cybersecurity services [12][13] 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 increase by around 50% or more year-over-year [18] - The rise of AI and increasing demand for cybersecurity solutions are seen as key drivers for future growth [17] - Management acknowledged the competitive nature of the market but remains confident in the company's ability to capitalize on emerging opportunities [41] Other Important Information - The company has made significant progress in expanding its partnership with Verizon Business, which now includes a broader customer base [9][10] - The Terra III multi-service platform has generated interest among Tier 1 telecom operators, contributing to a robust pipeline of opportunities [14][15] 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, so minimal contribution was expected in Q1, with significant growth anticipated in Q2 [25][26] Question: What was the big driver for CCaaS ARR growth? - The growth was attributed to new agreements and service launches, particularly with Vodafone and other carriers [27][28] Question: Is there a probability that CCaaS ARR grows less than 50%? - Management stated that while they are comfortable with the 50% estimate, various factors could influence the final outcome [29] 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 top contributor [30] Question: Are there opportunities to cross-sell CCaaS solutions to smart business customers? - Management confirmed that synergies exist between the two business units, allowing for potential cross-selling opportunities [34] Question: Are there large deals in the pipeline? - Management noted several 8-figure deals in the pipeline, driven by both existing and new projects [45][48] Question: How is the partnership with Vodafone progressing? - Some revenues have already been recognized, with expectations for continued growth from the partnership [52][53]

Financial Data and Key Metrics Changes - The company reported revenues of $23.2 million for the quarter, representing a 6% year-over-year increase [21] - Non-GAAP net income was $800,000, compared to a loss of $900,000 in the first quarter of the previous year [23] - Positive operating cash flow of $1.7 million was reported, with cash and short-term investments totaling $60.7 million at the end of the quarter [23] 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 [21] - CCaaS's annual recurring revenue (ARR) reached $21.2 million, reflecting a 55% increase year-over-year [7][21] - Non-GAAP gross margin remained stable at 70.4%, with expectations for continued growth as CCaaS revenue increases [22] Market Data and Key Metrics Changes - Verizon became the largest contributor to CCaaS revenues in the first quarter, driven by the launch of their mobile service and existing fixed wireless access customers [11][32] - The company is experiencing strong traction in partnerships with major telecom operators, including Vodafone and Verizon, which are expected to drive future growth [11][19] Company Strategy and Development Direction - The company is focused on a "security first" strategy, aiming to enhance growth and profitability through its Security as a Service solutions [6][18] - There is a strong emphasis on expanding partnerships and converting a robust pipeline of opportunities into new agreements [9][19] - The launch of new products, such as the OfNet Secure solution, is part of the strategy to provide comprehensive cybersecurity offerings [12][18] 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 increase by around 50% or more year-over-year [19] - The company is confident in its ability to capitalize on the growing demand for cybersecurity solutions, particularly in the consumer and SMB segments [18] - Management acknowledged the competitive nature of the market but highlighted the company's strong position and innovative offerings [41] Other Important Information - The company has made significant progress in expanding its pipeline for both CCaaS and smart products, with several multimillion-dollar agreements signed [14][52] - The Terra III multi-service platform has generated interest among Tier 1 telecom operators, contributing to a strong pipeline of opportunities [14][52] 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 related to Vodafone and other previous announcements [29] Question: Is there a probability that CCaaS ARR grows less than 50%? - Management stated that while they are comfortable with the 50% estimate, there are uncertainties due to reliance on service providers' marketing efforts [30][31] Question: Is there potential for cross-selling CCaaS solutions to smart business customers? - Management confirmed that there are synergies and potential for cross-selling between smart products and CCaaS solutions [37] Question: Are there large deals in the pipeline for the smart product line? - Management confirmed the presence of several 8-figure deals in the pipeline, driven by both existing and new projects [50][52] Question: How is the partnership with Vodafone progressing? - Management noted that some revenues have already been recognized from the Vodafone agreements, with expectations for continued growth [56][57]

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]

Financial Data and Key Metrics Changes - The company reported fourth quarter revenues of $24.9 million, up 2% year over year, and full year revenues of $92.2 million, just 1% below those of 2023 [34][10] - Non-GAAP net income for the year was $5.6 million, a significant recovery from a loss of $53 million last year, with positive cash flow generation of $4.8 million for 2024 [12][37] - Gross margins improved to approximately 70%, recovering from around 57% in 2023 [11][35] Business Line Data and Key Metrics Changes - The CCaaS (Cybersecurity as a Service) segment contributed revenues of $16.5 million for the full year, up 56% year over year, with annual recurring revenues (ARR) of $18.2 million, up 43% year over year [11][34] - Product revenue was reported at $4.8 million for the December quarter, down 55% year over year, attributed to fluctuations in specific deals [34][52] Market Data and Key Metrics Changes - The company secured significant contracts with major telecom operators, including Verizon and Vodafone, enhancing its market presence [14][22] - Verizon Business reported over 30 million subscribers, representing a substantial addressable market for the company's cybersecurity solutions [21] Company Strategy and Development Direction - The company is focused on a security-first strategy, integrating cybersecurity and network intelligence to create a differentiated offering [25][31] - The organizational structure has been revamped to better support customer demands, with a regional focus on sales and customer success [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position for long-term growth and profitability, citing a strong pipeline of opportunities and ongoing traction in the CCaaS segment [15][31] - The company anticipates another year of strong double-digit growth in CCaaS revenue and ARR for 2025 [18][31] Other Important Information - The company reduced operating expenses significantly, with non-GAAP operating expenses at $15.6 million, down 47% year over year [36] - The company had 504 full-time employees as of December 2024 [37] Q&A Session Summary Question: What is the driver of strong free cash flow generation for the quarter? - Management attributed the growth to continuous CCaaS growth and new service launches with existing customers [41] Question: What was the driver of the increase in support and maintenance revenue? - The increase was mainly due to the smart product line and catch-up on support agreements at year-end [45] Question: Why was product revenue down 55% year over year? - Product revenue fluctuates based on specific deals and seasonality, with CCaaS revenue increasing as a percentage of total revenue [52][53] Question: What are the expected growth rates for CCaaS? - Management aims to maintain high double-digit growth rates, similar to the previous year's performance [58] Question: How is the company planning to broaden its security offering? - The company is investing in R&D to extend security protection to customers even when they are off the network [90] Question: What is the expected performance of the DPI legacy business in 2025? - Management expects similar levels of performance but sees potential for upside based on new project wins [102] Question: Can you elaborate on the strong pipeline for CCaaS customers? - The pipeline includes both new services for existing customers and potential new customers, positioning the company well for growth [106]