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01/11 10:32
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
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.
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.
SECaaS ARR $21.2 million, up 55% year-over-year.
Non-GAAP Gross Margin 70.4%, unchanged from the first quarter of last year.
Non-GAAP Operating Expense $15.9 million, down 5% from $16.6 million in the first quarter of last year.
Non-GAAP Operating Income $0.4 million, compared to a non-GAAP operating loss of $1.2 million in the first quarter of last year.
Non-GAAP Net Profit $0.8 million, or $0.02 per share, compared to a non-GAAP net loss of $0.9 million, or a loss of $0.03 per share in the first quarter of last year.
Operating Cash Flow $1.7 million, positive cash flow reported for the quarter.
Cash Position $60.7 million, up from $58.8 million at year-end 2024.
New Product Launch: Launched OffNetSecure solution at RSA in San Francisco, allowing operators to protect customers against cyber threats when off-network.
Smart Product Agreements: Signed several multi-million dollar agreements with new customers for smart products, contributing to future growth.
New Service Gateway: Launched Tera III multi-service platform for top-tier telecom operators, generating strong interest and contributing to a robust pipeline.
Market Expansion with Verizon: Expanded partnership with Verizon Business to provide cybersecurity protection to their full mobile customer base of over 30 million subscribers.
Partnership Growth: Growing partnerships with Vodafone, O2, and Neo, with expectations of strong year-over-year increases in SECaaS revenues.
Revenue Growth: Reported revenue of $23.2 million, up 6% year-over-year, with SECaaS revenue at $5.1 million, up 49% year-over-year.
Cost Management: Non-GAAP operating expenses decreased to $15.9 million, down 5% from the previous year.
Employee Growth: Employee count at 483, expected to increase towards 500 by year-end.
Strategic Focus: Continued focus on a security-first strategy, driving growth and profitability.
Market Positioning: Positioned to capitalize on accelerating demand for cybersecurity solutions in consumer and SMB segments.
Market Trends: Actual events or results may differ materially from those projected, including as a result of changing market trends.
Service Launch Delays: Delays in the launch of services by Allot customers could impact performance.
Competitive Pressures: The competitive nature of the securities services industry poses risks to Allot's market position.
Economic Factors: Economic factors may affect demand for Allot's services.
Cybersecurity Risks: The rise of AI introduces new dimensions of risk that require additional solutions and protections.
SECaaS Revenue Growth: SECaaS revenue for Q1 2025 was $5.1 million, up 49% year-over-year, comprising 22% of total revenue.
Partnership Expansion: Significant expansion of partnership with Verizon Business, making Allot's solution available to over 30 million mobile customers.
New Product Launch: Launched OffNetSecure solution, allowing operators to protect customers against cyber threats when off-network.
Smart Product Agreements: Signed several multi-million dollar agreements for smart products, indicating ongoing demand.
Tera III Multi-Service Platform: Launched new service gateway aimed at tier-one telecom operators, contributing to a strong pipeline of opportunities.
2025 SECaaS Revenue Growth: Expect SECaaS revenue 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 to remain around 70% as SECaaS revenue grows as a percentage of overall revenue.
Employee Growth: Expect to increase full-time employees from 483 to approximately 500 by year-end 2025.
Operating Cash Flow: Reported positive operating cash flow of $1.7 million in Q1 2025.
Shareholder Return Plan: 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.
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