Core Insights - The company reported a revenue of $7.1 million for Q1 2025, aligning with guidance, while net profit was $0.4 million and adjusted EBITDA reached $1.3 million, exceeding expectations [1][12] - The demand for scalable, high-quality data is accelerating, driven by the growth of AI technologies and eCommerce platforms [2][8] - The company is strategically investing in scalable infrastructure and next-gen technologies to meet rising demand for AI-ready data [1][3] Financial Performance - Q1 2025 revenue decreased by 15% year-over-year from $8.4 million in Q1 2024 [13] - Gross profit for Q1 2025 was $4.8 million, with a gross margin of 67.5%, down from 78.5% in Q1 2024 [9][13] - Total operating expenses increased to $4.5 million in Q1 2025 from $4.0 million in Q1 2024, primarily due to higher research and development costs [13] Market Position and Strategy - The company expanded strategic partnerships with major AI and eCommerce players, including a top Asian marketplace and a European AI firm, for large-scale data labeling and model fine-tuning [8] - Alarum is positioned to play a key role in the emerging market for high-quality, scalable data infrastructure, essential for AI model training [8][29] - The company aims to build a robust data access backbone for the AI era, focusing on long-term value delivery for stakeholders [4][8] Future Outlook - The company anticipates Q2 2025 revenues to be around $7.9 million, with adjusted EBITDA expected between $0.5 million and $0.8 million [12] - The net retention rate (NRR) reached 1.13 as of March 31, 2025, indicating strong customer revenue growth [8][25] - Early results from strategic investments and positive pipeline visibility support an optimistic outlook for the second quarter of 2025 [8][12]