Loading...
01/11 10:32
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reflects strong financial performance with a 6% revenue increase, a significant rise in SECaaS revenue, and a transition to profitability. Operating cash flow is positive, and the cash position has improved. Despite no share repurchase, the company's strategic initiatives, including Verizon's contribution and new agreements, indicate growth potential. While competitive pressures and economic factors pose risks, the overall sentiment remains positive due to strong financial metrics and optimistic guidance, particularly in the SECaaS segment.
Revenue $23.2 million, up 6% year-over-year. The increase is attributed to the growth engine, SECaaS.
SECaaS Revenue $5.1 million, up 49% year-over-year, comprising 22% of total revenue. This growth is driven by the increasing adoption of SECaaS solutions.
SECaaS ARR $21.2 million, up 55% year-over-year. This reflects the strong demand for cybersecurity solutions.
Non-GAAP Gross Margin 70.4%, unchanged year-over-year. The margin is expected to increase as SECaaS revenue grows.
Non-GAAP Operating Expense $15.9 million, down 5% from $16.6 million year-over-year. This reduction is part of the company's efforts to control costs.
Non-GAAP Operating Income $0.4 million, compared to a loss of $1.2 million in the first quarter of last year. This improvement is due to revenue growth and cost management.
Non-GAAP Net Profit $0.8 million, or $0.02 per share, compared to a net loss of $0.9 million, or $0.03 per share, in the first quarter of last year. The profit is a result of increased revenues and reduced expenses.
Operating Cash Flow $1.7 million positive cash flow in the quarter, indicating improved cash generation.
Cash Position $60.7 million, up from $58.8 million at year-end 2024. This increase is due to positive cash flow and operational performance.
OffNetSecure Solution Launch: Launched at RSA in San Francisco, this new cybersecurity solution protects customers against cyber threats when off-network, providing a new revenue stream for telecom providers.
Tera III Multi-Service Platform: Launched for top-tier telecom operators, offering strong visibility into network traffic and generating significant interest.
SECaaS Revenue Growth: SECaaS contributed over 20% of revenues, with ARR at $21.2 million, up 55% year-over-year.
Partnership Expansion with Verizon: Expanded partnership with Verizon Business to include their full mobile customer base of over 30 million subscribers.
New Mobile Service Launch by Verizon: Verizon launched 'My Biz Plan', which includes mobile internet security as part of the base package, enhancing Allot's revenue potential.
Positive Operating Cash Flow: Reported positive operating cash flow of $1.7 million in Q1 2025.
Reduction in Operating Expenses: Non-GAAP operating expenses decreased to $15.9 million, down 5% from the previous year.
Security-First Strategy: Continued focus on a security-first strategy, with strong interest in cybersecurity solutions from customers.
Pipeline Growth: Significant growth in the pipeline for SECaaS and smart products, including multi-million dollar opportunities.
Market Trends: Changing market trends may impact future performance, as actual events or results may differ materially from projections.
Service Launch Delays: Delays in the launch of services by Allot customers could affect revenue and growth.
Competitive Pressures: The competitive nature of the securities services industry poses risks to maintaining market share and profitability.
Economic Factors: Economic factors may influence demand for Allot's services and overall business performance.
Regulatory Issues: Potential regulatory issues could arise, impacting operations and compliance costs.
Supply Chain Challenges: Supply chain challenges may affect the availability and delivery of products and services.
SECaaS Revenue Growth: SECaaS contributed over a fifth of revenues, with SECaaS ARR at $21.2 million, up 55% year-over-year.
Partnership Expansion: Significant expansion of partnership with Verizon Business, making Allot's solution available to over 30 million mobile subscribers.
New Product Launch: Launched OffNetSecure solution, allowing operators to protect customers against cyber threats when off-network.
Pipeline Growth: Solid progress in growing a deep and broad pipeline of potential opportunities for SECaaS and smart products.
New Service Gateway: Launched Tera III multi-service platform, attracting interest from tier-one networks.
2025 SECaaS Revenue Growth: Expect SECaaS revenues and ARR to achieve strong year-over-year increases at around 50% or more for the full year 2025.
Gross Margin Outlook: Expect gross margin in the coming year to remain in the range of 70%.
Employee Growth: Expect to gradually increase full-time employees from 483 to around 500 by year-end.
Operating Cash Flow: Reported positive operating cash flow of $1.7 million in Q1 2025.
Revenue Expectations: Reported revenue of $23.2 million in Q1 2025, up 6% year-over-year.
Share Repurchase Program: None
The earnings call indicates strong financial performance with 14% revenue growth, significant SECaaS revenue increase, and positive cash flow. New contracts and strategic partnerships, including a major telco deal, bolster future prospects. However, management's vague responses on certain topics in the Q&A could raise some concerns. Overall, the positive financial metrics and strategic developments suggest a likely positive stock price movement, despite some uncertainties.
The earnings call highlights strong financial performance, with a 9% revenue increase and a 73% SECaaS revenue growth. Improved margins and positive operating cash flow further support the positive sentiment. The Q&A section reveals high attach rates for Verizon's My Biz plan and a strong pipeline, despite some lack of clarity in management responses. The overall sentiment is positive, driven by strong financial metrics, optimistic guidance, and strategic partnerships.
The earnings call shows strong financial performance with a 6% revenue increase and significant growth in SECaaS revenue and ARR. The partnership expansion with Verizon and new product launches are positive indicators, along with a robust pipeline of agreements. Despite some uncertainties in guidance, the overall outlook is optimistic. The lack of a shareholder return plan is a minor negative, but the positive cash flow and improved margins are encouraging. The Q&A highlights potential future growth, especially with Verizon as a key partner. Overall, the sentiment is positive, expecting a 2-8% stock price increase.
The earnings call reflects strong financial performance with a 6% revenue increase, a significant rise in SECaaS revenue, and a transition to profitability. Operating cash flow is positive, and the cash position has improved. Despite no share repurchase, the company's strategic initiatives, including Verizon's contribution and new agreements, indicate growth potential. While competitive pressures and economic factors pose risks, the overall sentiment remains positive due to strong financial metrics and optimistic guidance, particularly in the SECaaS segment.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
