Alarum Estimates Record Revenues of $17.2 Million and Record Operating Cashflow of $6.3 Million for the First Half of 2024

Rhea-AI Summary

Alarum Technologies announced its preliminary financial metrics for the first half of 2024, reporting estimated record revenues of $17.2 million and record operating cash flow of $6.3 million. The revenue growth represents an increase of over 35% compared to the same period in 2023.

NetNut, a subsidiary, saw revenues grow by more than 95% year-over-year, contributing $16.7 million. The company's cash and cash equivalents rose to an all-time high of approximately $21.7 million.

Chief Executive Officer Shachar Daniel emphasized the strong performance and their commitment to further innovation and strategic investments. Full financial statements are expected on or before August 31, 2024.

Positive

• Estimated record revenues of $17.2 million in the first half of 2024, a 35% increase YoY.
• Record operating cash flow of $6.3 million compared to a negative cash flow of $0.1 million in 2023.
• NetNut's revenues grew by over 95% YoY, reaching $16.7 million.
• Cash and cash equivalents hit an all-time high of approximately $21.7 million.

Negative

• None.

Insights

Financial Analyst

Alarum Technologies Ltd. has shown impressive financial performance in the first half of 2024. With estimated revenues reaching $17.2 million, there is a marked revenue growth of 35% compared to the same period in 2023. This indicates a strong upward trend in the company's financial health. Additionally, the company has turned around its cashflow from operations from a slight negative of -$0.1 million to a positive $6.3 million, which is a significant improvement.

A noteworthy aspect is the company’s cash and cash equivalents balance, which now stands at $21.7 million. This robust cash position provides Alarum the financial flexibility to invest in further growth opportunities and potentially withstand economic downturns. The operational growth of NetNut, a subsidiary, is particularly impressive with a 95% year-over-year revenue increase. Keeping a strong cash position is vital for long-term sustainability and for funding future innovations and market expansions.

For retail investors, this financial performance suggests a well-managed company with significant growth potential. However, it is essential to monitor whether this growth sustains in the coming quarters and if the company can continue to generate positive cashflow. The strong preliminary results could potentially boost investor confidence and positively impact Alarum’s stock price in the short term.

Market Research Analyst

Analyzing the market positioning, Alarum Technologies' latest figures reflect a competitive edge in the internet access and web data collection solutions market. NetNut's remarkable revenue growth of 95% year-over-year highlights its increasing market share and customer adoption. This suggests that NetNut's services are resonating well with its target market, possibly due to unique value propositions or competitive pricing strategies.

For investors, the exceptional growth in NetNut's revenues is an indicator of strong market demand and the company's ability to capitalize on it. The company's claim of the highest quarterly revenue achievement to date in Q2 2024 reinforces this perspective. Investors should, however, consider the competitive landscape and the sustainability of this growth. External factors such as market saturation, technological advancements, or competitive actions could impact future performance.

Overall, the preliminary results suggest a solid growth trajectory for Alarum and its subsidiary NetNut, making it a potentially attractive stock for those looking to invest in the tech sector. Continuous innovation and maintaining competitive advantages will be key for sustaining this momentum.

Cash and cash equivalents balance reaches all-time high of approximately $21.7 million

NetNut’s revenues estimated to grow more than 95% YoY in the first half of 2024

Tel Aviv, Israel, July 10, 2024 (GLOBE NEWSWIRE) -- Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) (“Alarum” or the “Company”), a global provider of internet access and web data collection solutions, today provided preliminary key financial metrics guidance for the six months ended on June 30, 2024.

Based on a preliminary, unaudited review, Alarum anticipates reporting Strong performance for the first half and second quarter of 2024, highlighting accelerated operating and business growth:

• Revenue for the first half of 2024 is estimated at $17.2 million, representing an estimated increase of more than 35% compared to the same period in 2023.  Revenue for the second quarter of 2024 is estimated at more than $8.8 million, representing the highest quarterly revenue achievement to date and an estimated increase of 25% compared to the same period in 2023.
• In the first half of 2024, the Company is estimated to have generated approximately $6.3 million in cashflow from operating activities, compared to a negative cashflow of approximately $0.1 million for the same period in 2023. In the second quarter of 2024, the Company is estimated to have generated approximately $3.1 million in cashflow from operating activities, including annual commission payments for the sales teams following meeting their targets for 2023 revenues, compared to a negative cashflow of approximately $0.3 million for the same period in 2023.
• Cash and cash equivalents balance as of June 30, 2024, amounted to approximately $21.7 million.
• NetNut Ltd.’s (“NetNut”) first half revenues are estimated at $16.7 million, a growth of more than 95% in the first half of 2024 compared to the equivalent period in 2023.
• NetNut’s revenues for the second quarter of 2024 are estimated at $8.6 million, a growth of approximately 70% compared to the equivalent period in 2023. 

“The preliminary results for the first half of 2024 highlight our ability to deliver strong performance and value to our shareholders," said Shachar Daniel, Chief Executive Officer of Alarum. "Our revenues and operating cashflow reflect the dedication of our team and the robustness of our business model. We remain committed to delivering innovative solutions and exceptional service to support the achievement of our future plans. Our strong cash position enables us to invest strategically in our future, to facilitate long-term success for Alarum and its stakeholders."

Alarum expects to release fully reviewed financial statements for the first half of 2024 on or before August 31, 2024.

About Alarum Technologies Ltd.

Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) is a global provider of internet access and web data collection solutions. The solutions by NetNut, Alarum’s Enterprise Internet Access arm, are based on its world’s fastest and most advanced and secured hybrid proxy network, enabling its customers to collect data anonymously at any scale from any public sources over the web. Alarum’s network comprises both exit points based on its proprietary reflection technology and hundreds of servers located at its ISP partners around the world. The infrastructure is optimally designed to guarantee the privacy, quality, stability, and the speed of the service.

For more information about Alarum, please visit www.alarum.io    

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws and the Israeli securities law. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, Alarum is using forward-looking statements in this press release when it discusses its and NetNut’s preliminary unaudited results for the first half of 2024, the expected positive cashflow from operating activities, its ability to consistently deliver strong performance, innovative solutions and exceptional service, and the timing of the release of the fully reviewed financial statements for the first half of 2024. Because such statements deal with future events and are based on Alarum’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Alarum could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in Alarum’s annual report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on March 14, 2024, and in any subsequent filings with the SEC. Except as otherwise required by law, Alarum undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

The Company is providing revenue, cashflow from operating activities and cash and cash equivalents balance estimates in this press release, rather than final amounts, primarily because the financial closing process and review are not yet complete and, as a result, the Company’s final results upon completion of its closing process and review may vary from these preliminary estimates.

INVESTOR RELATIONS CONTACTS:

Michal Efraty
IR Manager
investors@alarum.io        

FAQ

What is Alarum Technologies' estimated revenue for the first half of 2024?

Alarum Technologies estimates its revenue for the first half of 2024 to be $17.2 million.

How much is Alarum Technologies' estimated operating cash flow for the first half of 2024?

Alarum Technologies' estimated operating cash flow for the first half of 2024 is $6.3 million.

What is NetNut's estimated revenue growth for the first half of 2024?

NetNut's estimated revenue growth for the first half of 2024 is over 95% year-over-year.

What are Alarum Technologies' cash and cash equivalents as of June 30, 2024?

Alarum Technologies' cash and cash equivalents as of June 30, 2024, are approximately $21.7 million.

When will Alarum Technologies release its full financial statements for the first half of 2024?

Alarum Technologies expects to release its full financial statements for the first half of 2024 on or before August 31, 2024.