Alarum Technologies Ltd Reports Record Second Quarter 2024 Financial Results
Intellectia.AI2024-08-27
Alarum Technologies Ltd. Reports Record Second Quarter 2024 Financial Results
Alarum Technologies Ltd. (Nasdaq, TASE: ALAR), a global provider of internet access and web data collection solutions, reported its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Q1 2024 | YoY Change | QoQ Change | Consensus Q2 2024 |
|---|---|---|---|---|---|---|
| Total Revenue | $17.3M | $7.4M | $8.9M | +133.8% | +94.4% | $8.92M |
| Earnings per Share (EPS) | $0.31 | $0.11 | $0.25 | +181.8% | +24.0% | $0.31 |
| Cash and Equivalents | $21.6M | $15.0M | $20.5M | +44.0% | +5.4% | - |
Alarum Technologies achieved record revenues for the quarter, driven by robust growth in its enterprise internet access services. The company's EPS showed a strong year-on-year and quarter-on-quarter increase, meeting Wall Street consensus estimates. The solid cash position of $21.6 million further underscores Alarum's financial stability and provides it the ability to invest in future growth.
Segment Performance
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | Q1 2024 Revenue | YoY Change | QoQ Change |
|---|---|---|---|---|---|
| IP Proxy Network (IPPN) | $9.6M | $4.3M | $4.8M | +123.3% | +100.0% |
| Data Collection & Labelling | $4.3M | $2.4M | $2.9M | +79.2% | +48.3% |
| AI & Analysis Capabilities | $3.4M | $0.7M | $1.2M | +385.7% | +183.3% |
The IPPN segment revenues more than doubled compared to the first quarter, reflecting strong demand and effective market penetration. The Data Collection & Labelling segment also saw significant growth, while the newly introduced AI & Analysis services exhibited exceptional performance, contributing substantially to overall revenue growth.
Key Developments and Operational Highlights
- Increased market share in the IP Proxy Network (IPPN) segment.
- Initial sales in the data collection and labelling market using the new Web-Unblocker tool.
- Progress towards providing customers with enhanced AI and analysis capabilities.
- Strong cash balance, enabling strategic investments for future growth.
Comments from Company Officers
Shachar Daniel, CEO: "Our results mark a record-breaking quarter, the first since our strategic shift to focus on Enterprise Internet Access through our NetNut product line. Our consistent growth in the IPPN segment and entry into the data collection market with the Web-Unblocker have positioned us strongly. We foresee NetNut revenues exceeding full-year 2023 figures within the first nine months of 2024, signaling our robust growth momentum and resilience."
Shai Avnit, CFO: "With solid revenue growth, enhanced profitability, and formidable cash generation, Alarum is well-prepared to invest in strategic areas that will drive future growth. For the first time, we are providing quarterly guidance, projecting Q3 2024 revenues to be around $7 million ±3% and Adjusted EBITDA between $0.8 to $1.0 million."
Dividends and Share Repurchase Program
The earnings release did not mention any announcements regarding dividends or share repurchase programs.
Forward Guidance
Alarum provided guidance for Q3 2024, expecting revenue to demonstrate year-over-year growth, with NetNut revenues to exceed full-year 2023 figures by the end of the third quarter. Adjusted EBITDA is anticipated to range from $0.8 to $1.0 million.
Stock Price Movement
Following the earnings release, Alarum's stock price dropped by 30.93%, indicating a negative market reaction despite the strong financial results.
Contact Information:
Investor Relations: Michal Efraty +972-(0)52-3044404 investors@alarum.io
For further details, please visit Alarum Technologies .
This professional summary articulates Alarum Technologies' Q2 2024 financial performance, emphasizing key metrics, segment performance, and future outlook. Accurate financial data and key operational highlights are presented to provide a comprehensive overview of the company's achievements and strategic direction.
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