Alarum Technologies .(US:ALAR)2025-11-26 14:32Financial Data and Key Metrics Changes - Revenues for Q3 2025 reached $13 million, an increase of 81% year-over-year and 48% sequentially, marking one of the strongest quarters in the company's history [7][15] - Non-IFRS gross margins for Q3 2025 were 56%, down from 74% in Q3 2024, reflecting increased investments and a higher share of large-scale projects with AI customers [16][17] - Operating expenses in Q3 2025 were $7.4 million, compared to $4.1 million in Q3 2024, driven by planned investments in R&D and sales [17] - Net profit for Q3 2025 was $0.1 million, down from $4.2 million in Q3 2024, with the previous year's profit influenced by one-time financial income [18][19] - Adjusted EBITDA for Q3 2025 was $1.2 million, compared to $1.4 million in Q3 2024 [19] Business Line Data and Key Metrics Changes - The company saw a 26% increase in paying customers and a 17% increase in average revenue per customer during the quarter [7] - The product suite is evolving from a single product proxy business into a diversified multi-product data infrastructure platform, with significant contributions from datasets and website unblockers [12] Market Data and Key Metrics Changes - The company is experiencing strong traction with major global e-commerce platforms in Asia, which are placing repeat and expanding orders [8] - Demand from leading AI labs is expected to grow sharply, indicating a broadening market for the company's services [8][12] Company Strategy and Development Direction - The company prioritizes long-term relationships and market share capture over short-term margins, with a focus on AI-driven growth [3] - Strategic investments are being made to expand capacity and enhance infrastructure, which is expected to improve margins in the long term [9][10] - The company aims to shift towards higher value products, which will improve unit economics and margins over time [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position within the AI market, anticipating smoother revenue patterns as models transition from research to production [11] - For Q4 2025, the company expects revenues of approximately $12 million, representing a 62% year-over-year growth [13][20] - The company aims to end 2025 with around $41 million in revenues, up almost 30% year-over-year [13] Other Important Information - The company's shareholders' equity increased to $31.1 million as of September 30, 2025, up from $26.4 million at the end of 2024 [19] - Cash and cash equivalents as of September 30, 2025, were approximately $24.6 million, supporting ongoing strategic investments [19] Q&A Session Summary Question: Can you talk about the large project for Dataset delivery? - Management clarified that it is not a project but a demand for a product combining a scraper and dataset, with significant revenue contribution [22][23] Question: Do you see once R&D customers have developed their models that usage is higher or lower? - Management indicated that during the education stage, customers need a large amount of data quickly, while in production, usage may be more predictable but spread over time [26][27] Question: What is the pipeline to sell this new Dataset delivery solution to other customers? - Management confirmed that there are already other customers leveraging this product, and there are additional prospects in the pipeline [30] Question: How should we think about the gross margin recovering as revenue scales? - Management noted that if all solutions were in-house, gross margins could be around 70%, and they are working to reduce reliance on third-party vendors [31][32] Question: When will and how do you think about the unit economics improving? - Management expects improvements in unit pricing as demand stabilizes and infrastructure becomes more efficient [36][37]