Alarum Technologies Announces Fourth Quarter and Annual 2024 Results
Alarum Technologies (NASDAQ: ALAR) reported strong financial results for Q4 and full year 2024, marking a successful strategic shift to data collection solutions. The company achieved record revenue of $31.8 million in 2024, a 20% increase year-over-year, with Q4 revenue reaching $7.4 million.
Key financial highlights include:
- 2024 net profit of $5.8 million (vs loss of $5.6M in 2023)
- Adjusted EBITDA of $9.4 million (vs $5.2M in 2023)
- Cash and liquid investments of $25 million at year-end
- Operating cash flow up 93% to $8.9 million
The company's web data collection business, NetNut, grew 45% year-over-year to $30.9 million in 2024. For Q1 2025, Alarum projects revenue of $7.3 million (±3%) and Adjusted EBITDA between $0.8-1.2 million. The company is actively engaging in AI model training trial projects with major global companies, including one of the world's largest online marketplace corporates.
Alarum Technologies (NASDAQ: ALAR) ha riportato risultati finanziari solidi per il quarto trimestre e l'intero anno 2024, segnando un cambio strategico di successo verso soluzioni di raccolta dati. L'azienda ha raggiunto un fatturato record di 31,8 milioni di dollari nel 2024, con un incremento del 20% rispetto all'anno precedente, e il fatturato del quarto trimestre ha raggiunto i 7,4 milioni di dollari.
I principali punti salienti finanziari includono:
- utile netto 2024 di 5,8 milioni di dollari (rispetto a una perdita di 5,6 milioni di dollari nel 2023)
- EBITDA rettificato di 9,4 milioni di dollari (rispetto a 5,2 milioni di dollari nel 2023)
- liquidità e investimenti liquidi di 25 milioni di dollari a fine anno
- flusso di cassa operativo aumentato del 93% a 8,9 milioni di dollari
Il business di raccolta dati web dell'azienda, NetNut, è cresciuto del 45% anno su anno, raggiungendo i 30,9 milioni di dollari nel 2024. Per il primo trimestre del 2025, Alarum prevede un fatturato di 7,3 milioni di dollari (±3%) e un EBITDA rettificato compreso tra 0,8 e 1,2 milioni di dollari. L'azienda sta attivamente partecipando a progetti di prova per la formazione di modelli di intelligenza artificiale con grandi aziende globali, inclusa una delle più grandi corporazioni di marketplace online al mondo.
Alarum Technologies (NASDAQ: ALAR) informó sobre resultados financieros sólidos para el cuarto trimestre y el año completo 2024, marcando un exitoso cambio estratégico hacia soluciones de recolección de datos. La compañía logró un ingreso récord de 31,8 millones de dólares en 2024, un aumento del 20% interanual, con ingresos del cuarto trimestre alcanzando los 7,4 millones de dólares.
Los aspectos financieros clave incluyen:
- beneficio neto de 5,8 millones de dólares en 2024 (frente a una pérdida de 5,6 millones de dólares en 2023)
- EBITDA ajustado de 9,4 millones de dólares (frente a 5,2 millones de dólares en 2023)
- efectivo e inversiones líquidas de 25 millones de dólares al final del año
- flujo de caja operativo aumentado en un 93% a 8,9 millones de dólares
El negocio de recolección de datos web de la compañía, NetNut, creció un 45% interanual, alcanzando los 30,9 millones de dólares en 2024. Para el primer trimestre de 2025, Alarum proyecta ingresos de 7,3 millones de dólares (±3%) y un EBITDA ajustado entre 0,8 y 1,2 millones de dólares. La compañía está participando activamente en proyectos de prueba de entrenamiento de modelos de IA con importantes empresas globales, incluida una de las corporaciones de mercado en línea más grandes del mundo.
알라룸 테크놀로지스 (NASDAQ: ALAR)는 2024년 4분기 및 전체 연도에 대한 강력한 재무 결과를 보고하며 데이터 수집 솔루션으로의 성공적인 전략 전환을 나타냈습니다. 이 회사는 2024년에 3180만 달러의 기록적인 수익을 달성했으며, 이는 전년 대비 20% 증가한 수치로, 4분기 수익은 740만 달러에 달했습니다.
주요 재무 하이라이트는 다음과 같습니다:
- 2024년 순이익 580만 달러 (2023년 560만 달러 손실 대비)
- 조정된 EBITDA 940만 달러 (2023년 520만 달러 대비)
- 연말 현금 및 유동 투자 2500만 달러
- 운영 현금 흐름 93% 증가하여 890만 달러
회사의 웹 데이터 수집 비즈니스인 NetNut은 2024년에 전년 대비 45% 성장하여 3090만 달러에 달했습니다. 2025년 1분기에는 알라룸이 730만 달러(±3%)의 수익과 80만 - 120만 달러의 조정된 EBITDA를 예상하고 있습니다. 이 회사는 세계 최대 온라인 마켓플레이스 기업 중 하나를 포함하여 주요 글로벌 기업들과 AI 모델 교육 시험 프로젝트에 적극 참여하고 있습니다.
Alarum Technologies (NASDAQ: ALAR) a annoncé des résultats financiers solides pour le quatrième trimestre et l'année complète 2024, marquant un changement stratégique réussi vers des solutions de collecte de données. L'entreprise a atteint un chiffre d'affaires record de 31,8 millions de dollars en 2024, soit une augmentation de 20 % par rapport à l'année précédente, avec un chiffre d'affaires du quatrième trimestre atteignant 7,4 millions de dollars.
Les points financiers clés comprennent:
- bénéfice net de 5,8 millions de dollars en 2024 (contre une perte de 5,6 millions de dollars en 2023)
- EBITDA ajusté de 9,4 millions de dollars (contre 5,2 millions de dollars en 2023)
- liquidités et investissements liquides de 25 millions de dollars à la fin de l'année
- flux de trésorerie opérationnel en hausse de 93 % à 8,9 millions de dollars
L'activité de collecte de données web de l'entreprise, NetNut, a connu une croissance de 45 % d'une année sur l'autre, atteignant 30,9 millions de dollars en 2024. Pour le premier trimestre 2025, Alarum prévoit un chiffre d'affaires de 7,3 millions de dollars (±3 %) et un EBITDA ajusté compris entre 0,8 et 1,2 million de dollars. L'entreprise participe activement à des projets d'essai de formation de modèles d'IA avec de grandes entreprises mondiales, y compris l'une des plus grandes entreprises de marché en ligne au monde.
Alarum Technologies (NASDAQ: ALAR) hat starke finanzielle Ergebnisse für das vierte Quartal und das gesamte Jahr 2024 gemeldet und damit einen erfolgreichen strategischen Wechsel zu Datensammlungs-Lösungen vollzogen. Das Unternehmen erzielte einen Rekordumsatz von 31,8 Millionen Dollar im Jahr 2024, was einem Anstieg von 20 % im Vergleich zum Vorjahr entspricht, wobei der Umsatz im vierten Quartal 7,4 Millionen Dollar erreichte.
Wichtige finanzielle Höhepunkte sind:
- Nettoergebnis 2024 von 5,8 Millionen Dollar (im Vergleich zu einem Verlust von 5,6 Millionen Dollar im Jahr 2023)
- Bereinigtes EBITDA von 9,4 Millionen Dollar (im Vergleich zu 5,2 Millionen Dollar im Jahr 2023)
- Bargeld und liquide Investitionen von 25 Millionen Dollar zum Jahresende
- Betrieblicher Cashflow um 93 % auf 8,9 Millionen Dollar gestiegen
Das Web-Daten-Sammelgeschäft des Unternehmens, NetNut, wuchs 2024 um 45 % im Vergleich zum Vorjahr und erreichte 30,9 Millionen Dollar. Für das erste Quartal 2025 prognostiziert Alarum einen Umsatz von 7,3 Millionen Dollar (±3 %) und ein bereinigtes EBITDA zwischen 0,8 und 1,2 Millionen Dollar. Das Unternehmen engagiert sich aktiv in Testprojekten zur Schulung von KI-Modellen mit großen globalen Unternehmen, darunter eines der größten Online-Marktplatzunternehmen der Welt.
- Record revenue of $31.8M in 2024, up 20% YoY
- Turned $5.6M loss into $5.8M profit in 2024
- Strong cash position of $25M at year-end
- 93% increase in operating cash flow to $8.9M
- NetNut data collection business grew 45% YoY
- Net Retention Rate of 1.27, indicating strong customer growth
- Net Retention Rate declined from 1.53 in 2023 to 1.27 in 2024
- Q4 2024 revenue growth slowed to 4% YoY
- Operating expenses increased in Q4 2024 to $5.0M from $3.6M in Q4 2023
- Projected lower short-term revenue growth for upcoming quarters
Insights
Alarum Technologies has delivered a transformative 2024, successfully executing their strategic pivot to web data collection while achieving significant financial milestones. The company reported $31.8 million in revenue (+20% YoY), with their core Web Data Collection segment growing 45% to $30.9 million.
Most notably, Alarum reversed its financial trajectory, posting a $5.8 million net profit compared to a $5.6 million loss in 2023. This turnaround is further evidenced by $9.4 million in Adjusted EBITDA and a 93% increase in operating cash flow to $8.9 million.
Their balance sheet has strengthened substantially, with shareholders' equity doubling to $26.4 million and cash/liquid investments reaching $25 million. The Net Retention Rate of 1.27 indicates healthy customer expansion, though slightly down from 1.53 last year.
Alarum's strategic positioning in AI data collection appears timely, with the company noting engagements with major corporations, including "one of the world's largest online marketplace corporates" for AI model training. However, Q1 2025 guidance suggests flattening growth with revenue projected at $7.3 million (±3%) compared to Q4's $7.4 million, and Adjusted EBITDA expected to decline to $0.8-1.2 million from Q4's $1.5 million.
While the company has successfully executed its strategic shift and achieved profitability, the modest forward guidance indicates potential growth challenges as the data collection market evolves.
Alarum's strategic realignment toward web data collection positions them directly in the critical supply chain for AI development. Their focus on scaling their IP network infrastructure (IPPN) addresses the growing challenge of data acquisition amidst increasingly sophisticated website barriers - a bottleneck many AI developers face.
The company's introduction of Website Unblocker and SERP API products, along with the development of an AI Data Collector, demonstrates their evolution from basic data scraping to more sophisticated data acquisition solutions. Their recognition in the 2024 PROXYWAY Market Research validates their emerging market position.
The engagement in "mega-scale trial projects" for AI model training with major corporations signals potential for enterprise-level contracts, though the cautious Q1 guidance suggests these relationships remain exploratory rather than translating into immediate large-scale revenue.
Industry dynamics are creating a complex competitive landscape: while demand for training data is accelerating, websites are implementing stronger countermeasures, creating technical challenges that benefit established players with robust infrastructure. Alarum's $25 million cash position provides competitive resilience in this environment.
The strategic pivot appears well-timed as generative AI development drives unprecedented demand for web data. However, the company's acknowledgment of "revenue fluctuation across the industry" and tempered short-term guidance suggests they're navigating market volatility typical of emerging technology sectors. Their decision to prioritize long-term positioning over immediate growth acceleration appears prudent given the rapid evolution of AI data requirements.
A Pivotal Year, Marking Accomplishment of Strategic Shift to Data Collection,
Hits Milestones Toward Becoming a Driving Force in the AI Revolution
2024 revenue increased to
2024 net profit rose to
Cash and liquid investments balance at year-end amounted to
TEL AVIV, Israel, March 20, 2025 (GLOBE NEWSWIRE) -- Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) (“Alarum” or the “Company”), a global provider of web data collection solutions, today announced financial results for the fourth quarter and full year ended December 31, 2024.
Shachar Daniel, Chief Executive Officer of Alarum, said: “2024 was a landmark year for Alarum, as we successfully executed our strategic vision, to focus on data collection. This transformation comes at a time when AI is reshaping the world at an unprecedented pace. As data fuels intelligence, the companies that will lead this revolution are those that anticipate change, build a strong foundation, and position themselves for long-term success. This is exactly what we are striving for - taking it step by step.”
Market Trends Shaping Business Short-and Long-Term
- Alarum Engaged in AI Model Training Trial Projects: as AI trends accelerated toward the end of 2024, collecting accurate data at massive scales has become increasingly critical. In the fourth quarter of 2024 and the first quarter of 2025, leading global companies, including one of the world’s largest online marketplace corporates, have selected Alarum’s Data Collection solutions for initial AI model training of mega-scale trial projects.
- Industry Trends and Market Dynamics: With the growing demand for data, AI companies and data providers are forced to adapt to a rapidly evolving landscape, with websites implementing new technological barriers to data collection. This dynamic environment has led to revenue fluctuation across the industry. Alarum’s financial strength and operational efficiency allow it to capitalize on long-term market growth, leveraging its robust technological foundation, established customer base, and strategic engagements with industry leaders.
- Financial Resilience: Alarum’s solid balance sheet and efficient operations enable it to stay ahead of the competition, seize opportunities promptly and adapt its long-term plans as required.
- Long-term Product Strategy and Vision: Evolving market needs validate Alarum’s focus on in-depth research and aligned roadmaps. Recognizing the current era as a paramount opportunity, the Company continues to prioritize and allocate resources to seize and focus mainly on long-term growth opportunities, aiming to elevate its position to the next level.
Recent Developments and Business Highlights
- Network Expansion: Alarum significantly scaled its IP network (IPPN) infrastructure in 2024, reinforcing its position as a key player in large-scale data collection. Its leadership was also acknowledged in the comprehensive public report on the IPPN industry, the 2024 PROXYWAY Market Research1, which named Alarum’s NetNut Ltd. (“NetNut”) as a top performer.
- Introducing Innovative Data Collection & Labeling Solutions: Alarum has introduced cutting-edge solutions, designed to provide seamless and scalable access to high-quality data. In the second half of 2024, the Company recorded initial sales from the Website Unblocker and SERP API (Search Engine Results Page Application Programming Interface) products, and it also made progress with the development of an AI Data Collector.
- NetNut’s Net Retention Rate (“NRR”)2 reached 1.27 as of December 31, 2024, compared to 1.53 as of December 31, 2023, yet another consecutive quarter of achieving an NRR well-above 1.
Chen Katz, Chairman of The Board of Alarum, commented: “Our 2024 results showcase the success of our strategic shift, which is well supported by our financial resilience. With a sharp focus on data collection, we have built a solid foundation for long term sustainability in the AI data-driven era. I am excited to see how our continued innovation and execution will shape the future of our company.”
| Summary of Financial Results3 | |||||||||||||||
| (in millions of U.S. dollars, rounded, except per share amounts and margins) | |||||||||||||||
| For the Year Ended December 31, | For the Three Months Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| (Audited) | (Audited) | (Unaudited) | (Unaudited) | ||||||||||||
| Total Revenue | 31.8 | 26.5 | 7.4 | 7.1 | |||||||||||
| of which, Web Data Collection Revenue was | 30.9 | 21.3 | 7.2 | 6.7 | |||||||||||
| Gross profit | 23.9 | 18.8 | 5.3 | 5.3 | |||||||||||
| Gross margin (in percentage) | 75.1 | % | 70.9 | % | 72.4 | % | 75.0 | % | |||||||
| Non-IFRS gross margin (in percentage) | 77.0 | % | 74.3 | % | 74.3 | % | 77.2 | % | |||||||
| Total operating expenses | 17.2 | 24.3 | 5.0 | 3.6 | |||||||||||
| Financial income (expense), net | 0.3 | (0.6 | ) | 0.2 | (0.1 | ) | |||||||||
| Tax benefit (expense) | (1.2 | ) | 0.5 | (0.1 | ) | (* | ) | ||||||||
| Net profit (loss) from continuing operations | 5.8 | (5.6 | ) | 0.4 | 1.7 | ||||||||||
| Adjusted EBITDA from continuing operations | 9.4 | 5.2 | 1.5 | 2.2 | |||||||||||
| Basic earnings (loss) per ADS from continuing operations (in U.S. dollars) | $ | 0.87 | $ | (1.35 | ) | $ | 0.06 | $ | 0.28 | ||||||
| Non-IFRS basic earnings (loss) per American Depository Share (“ADS”) from continuing operations (in U.S. dollars) | $ | 1.26 | $ | (1.14 | ) | $ | 0.20 | $ | 0.38 | ||||||
| Cash, cash equivalents and debt investments (including accrued interest)4 | 25.0 | 10.9 | 25.0 | 10.9 | |||||||||||
| Shareholders’ equity3 | 26.4 | 13.2 | 26.4 | 13.2 | |||||||||||
| * Less than | |||||||||||||||
Fourth Quarter and Full Year 2024 Financial Analysis
- Revenue in Q4 2024 grew
4% year-over-year to$7.4 million (Q4 2023:$7.1 million ). The increase is attributed to our NetNut web data collection business, which grew7% to$7.2 million in Q4 2024, up from$6.7 million in Q4 2023. Revenue for the whole year 2024 grew20% , rising to a record of$31.8 million (2023:$26.5 million ). The Web Data Collection revenue reached a Company record$30.9 million in 2024, achieving45% year-over-year growth (2023:$21.3 million ). - Cost of revenue in Q4 2024 was
$2.0 million (Q4 2023:$1.8 million ). Full year 2024, cost of revenue was$7.9 million , (2023:$7.7 million ). During these periods, costs have shifted towards investment in the Company’s IP network, as per its strategic decision announced in July 2023 to focus solely on its web data collection business. - Operating expenses in Q4 2024 totalled
$5.0 million (Q4 2023:$3.6 million ). The quarterly change was driven mainly by the increase in the NetNut Data Collection operations, primarily research and development salary costs. For the full year 2024, operating expenses were down to$17.2 million (2023:$24.3 million ), mainly due to 2023-related impairment costs of goodwill and intangible assets and the strategic decision to scale down the Company’s consumer internet access business operations, partially offset by the increase in Data Collection operating expenses. - Financial income, net, in Q4 2024 was
$0.2 million (Q4 2023: financial expense, net, of$0.1 million ). Financial income, net, for 2024, increased to$0.3 million (2023: financial expense, net, of$0.6 million ). This shift to financial income, net, from an expense, net, was mainly due to the increase in interest income from cash deposits as well as lower financial expenses related to short- and long-term loans. - 2024 cash flow from operating activities rose
93% , to$8.9 million , compared to last year (2023:$4.6 million ). - Bottom line, 2024 net profit from continuing operations rose to a record
$5.8 million (2023: loss of$5.6 million ), and the corresponding 2024 Adjusted EBITDA was up at a Company record$9.4 million (2023:$5.2 million ). - As of December 31, 2024, shareholders’ equity doubled, totalling
$26.4 million , up from$13.2 million as of December 31, 2023. The increase was driven by the switch to net profit from net loss as well as warrants and options exercises. - Outstanding ordinary share count as of December 31, 2024, was approximately 69.1 million shares, or 6.9 million in ADSs.
Financial Outlook
“In line with our guidance, total fourth quarter 2024 revenues increased to
“As we look ahead, our revenue guidance reflects the ongoing shifts in the global data collection. First quarter 2025 revenues are estimated at
We are unable to present a reconciliation of our estimated Adjusted EBITDA to net profit from continuing operations as we are unable to predict with reasonable certainty, and without unreasonable effort, the impact and timing of certain expenses on our net profit from continuing operations. The financial impact of these expenses is uncertain and is dependent on various factors, including timing, and could be material to our consolidated statements of profit or loss and other comprehensive income (loss).
Fourth Quarter 2024 Financial Results Conference Call
Mr. Shachar Daniel, Chief Executive Officer of Alarum, and Mr. Shai Avnit, Chief Financial Officer of Alarum, will host a conference call today, March 20, 2025, at 8:30 a.m. ET, 5:30 a.m. Pacific time, 2:30 p.m. Israel, to discuss the fourth quarter and full year 2024 results and the first quarter 2025 outlook, followed by a Q&A session. To attend, please dial one of the following numbers, at least five minutes before the call starts: 1-877-407-0789 or 1-201-689-8562. If you are unable to connect using the toll-free number, please try the international dial-in number. An Israeli toll-free number is: 1 809 406 247. Participants will be required to state their name and company upon dialling in.
Replay: The conference call will be broadcast live and available for replay here, after 11:30 a.m. ET on March 20, 2025, through April 20, 2025. Toll-free replay numbers: 1-844-512-2921 or 1-412-317-6671, ID: 13751807.
Forward-Looking Statements
- This press release contains forward-looking statements within the meaning of the “safe harbor” 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 strategic vision, benefits, advantages and capabilities of Alarum’s solutions, the growing demand for data, that Alarum’s financial strength and operational efficiency allow it to capitalize on long-term market growth, that Alarum’s solid balance sheet and efficient operations enable it to stay ahead of the competition, seize opportunities promptly and adapt its long-term plans as required, that the Company continues to prioritize and allocate resources to seize and focus mainly on long-term growth opportunities and its aim to elevate its position to the next level, the estimates of the revenues for the first quarter 2025 revenues and Adjusted EBITDA, that short-term revenue growth may be lower than in previous quarters, and the Company’s focus on the bigger picture, and on generating long-term and sustainable value for the Company’s stakeholders. 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 20, 2025, 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. References and links to websites have been provided as a convenience, and the information contained on such websites is not incorporated by reference into this press release. Alarum is not responsible for the contents of third-party websites.
| Condensed Consolidated Statements of Financial Position | |||||
| (in thousands of U.S. dollars) | |||||
| December 31, | |||||
| 2024 | 2023 | ||||
| (Audited) | |||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | 15,081 | 10,872 | |||
| Trade receivables, net | 3,231 | 1,994 | |||
| Other receivables | 503 | 399 | |||
| 18,815 | 13,265 | ||||
| Non-current assets: | |||||
| Long-term deposits | 121 | 104 | |||
| Other non-current assets | 85 | 145 | |||
| Property and equipment, net | 130 | 88 | |||
| Right-of-use assets | 498 | 779 | |||
| Deferred tax assets | 422 | 181 | |||
| Debt investments at fair value through other comprehensive income | 9,256 | - | |||
| Debt investments at fair value through profit or loss | 555 | - | |||
| Intangible assets, net | 811 | 1,386 | |||
| Goodwill | 4,118 | 4,118 | |||
| Total non-current assets | 15,996 | 6,801 | |||
| Total assets | 34,811 | 20,066 | |||
| Liabilities and equity | |||||
| Current liabilities: | |||||
| Trade payables | 251 | 369 | |||
| Other payables | 4,484 | 2,439 | |||
| Current maturities of long-term loan | 938 | 290 | |||
| Contract liabilities | 1,987 | 1,983 | |||
| Derivative financial instruments | 148 | 109 | |||
| Short-term lease liabilities | 359 | 370 | |||
| Total current liabilities | 8,167 | 5,560 | |||
| Non-current liabilities: | |||||
| Long-term lease liabilities | 261 | 523 | |||
| Long-term loans, net of current maturities | 32 | 802 | |||
| Total non-current liabilities | 293 | 1,325 | |||
| Total liabilities | 8,460 | 6,885 | |||
| Equity: | |||||
| Ordinary shares | - | - | |||
| Share premium | 111,892 | 100,576 | |||
| Other equity reserves | 11,012 | 14,938 | |||
| Accumulated deficit | (96,553 | ) | (102,333 | ) | |
| Total equity | 26,351 | 13,181 | |||
| Total liabilities and equity | 34,811 | 20,066 | |||
| Condensed Consolidated Statements of Profit or Loss | |||||||||||||
| (in thousands of U.S. dollars, except per share amounts) | |||||||||||||
| For the Year Ended December 31, | For the Three Months Ended December 31, | ||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||
| (Audited) | (Audited) | (Unaudited) | (Unaudited) | ||||||||||
| Continuing operations | |||||||||||||
| Revenue | 31,824 | 26,521 | 7,370 | 7,107 | |||||||||
| Cost of revenue | 7,915 | 7,711 | 2,032 | 1,778 | |||||||||
| Gross profit | 23,909 | 18,810 | 5,338 | 5,329 | |||||||||
| Operating expenses: | |||||||||||||
| Research and development | 4,495 | 3,557 | 1,210 | 795 | |||||||||
| Sales and marketing | 7,033 | 10,035 | 1,988 | 1,579 | |||||||||
| General and administrative | 5,661 | 4,406 | 1,749 | 1,207 | |||||||||
| Impairment of goodwill | - | 6,311 | - | - | |||||||||
| Total operating expenses | 17,189 | 24,309 | 4,947 | 3,581 | |||||||||
| Operating profit (loss) | 6,720 | (5,499 | ) | 391 | 1,748 | ||||||||
| Financial income (expense), net | 281 | (590 | ) | 163 | (54 | ) | |||||||
| Profit (loss) from continuing operations before income tax | 7,001 | (6,089 | ) | 554 | 1,694 | ||||||||
| Tax benefit (expense) | (1,221 | ) | 482 | (112 | ) | (22 | ) | ||||||
| Profit (loss) from continuing operations, net of income tax | 5,780 | (5,607 | ) | 442 | 1,672 | ||||||||
| Profit from discontinued operations, net of income tax | - | 82 | - | - | |||||||||
| Net profit (loss) for the period | 5,780 | (5,525 | ) | 442 | 1,672 | ||||||||
| Other comprehensive income (loss) for the period Change in fair value of debt investments | (80 | ) | - | (80 | ) | - | |||||||
| Total comprehensive income (loss) for the period | 5,700 | (5,525 | ) | 362 | 1,672 | ||||||||
| Basic profit (loss) per share: | |||||||||||||
| Continuing operations | $ | 0.09 | (0.14 | ) | 0.01 | 0.03 | |||||||
| Discontinued operations | - | * | - | - | |||||||||
| $ | 0.09 | (0.14 | ) | 0.01 | 0.03 | ||||||||
| Diluted profit (loss) per share: | |||||||||||||
| Continuing operations | $ | 0.08 | (0.14 | ) | 0.01 | 0.03 | |||||||
| Discontinued operations | - | * | - | - | |||||||||
| $ | 0.08 | (0.14 | ) | 0.01 | 0.03 | ||||||||
| Basic profit (loss) per ADS: | |||||||||||||
| Continuing operations | $ | 0.87 | (1.35 | ) | 0.06 | 0.28 | |||||||
| Discontinued operations | - | * | - | - | |||||||||
| $ | 0.87 | (1.35 | ) | 0.06 | 0.28 | ||||||||
| * Less than | |||||||||||||
Use of Non-IFRS Financial Results
In addition to disclosing financial results calculated in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board, this press release contains non-IFRS financial measures of EBITDA (EBITDA loss), Adjusted EBITDA (Adjusted EBITDA loss), non-IFRS net profit (loss), non-IFRS gross profit, non-IFRS gross margin and non-IFRS basic earnings (loss) per share or ADS for the periods presented. The Company defines EBITDA (EBITDA loss) as net profit (loss) from continuing operations before depreciation, amortization and impairment of intangible assets, financial income (expense) and income tax; defines Adjusted EBITDA (Adjusted EBITDA loss) as EBITDA (EBITDA loss) as further adjusted to remove the impact of (i) impairment of goodwill (if any); and (ii) share-based compensation; defines non-IFRS net profit (loss) as net profit (loss) from continuing operations before depreciation, amortization and impairment of intangible assets, impairment of goodwill, financial income (expense) effects primarily related to derivative financial instruments as well as long-term loans, deferred tax effects and share-based compensation; defines non-IFRS gross profit as gross profit from continuing operations adjusted to remove the impact of depreciation, amortization and impairment of intangible assets and share-based compensation recorded under cost of revenues; defines non-IFRS gross margin as the percentage of the non-IFRS gross profit out of revenues; and defines non-IFRS basic earnings (loss) per share or ADS as non-IFRS net profit (loss) divided by the weighted average number of ordinary shares or ADSs. The Company’s management believes the non-IFRS financial information provided in this press release is useful to investors’ understanding and assessment of the Company’s ongoing operations. Management also uses both IFRS and non-IFRS information in evaluating and operating its business internally, and as such deemed it important to provide this information to investors. The non-IFRS financial measures disclosed by the Company should not be considered in isolation, or as a substitute for, or superior to, financial measures calculated in accordance with IFRS, and the financial results calculated in accordance with IFRS and reconciliations to those financial statements should be carefully evaluated. Investors are encouraged to review the reconciliations of these non-IFRS measures to their most directly comparable IFRS financial measures provided in the financial statement tables herein.
Other Metrics
Net retention rate (NRR) is a key indicator of customer base health and revenue expansion. It is based on NRR point in time, which measures the revenue growth of customers over the past four quarters, compared to the revenue generated from these customers during the same period a year earlier.
NRR is calculated as an average of the NRR points in time for the end of the current period and the three preceding quarters.
NRR > 1 (or
NRR < 1 (or
Non-IFRS Financial Measures
(in millions of U.S. dollars, rounded)
The following tables present the reconciled effect of the above on the Company’s Adjusted EBITDA (EBITDA loss); non-IFRS net profit (loss); and non-IFRS gross profit for the year and three months ended December 31, 2024 and 2023:
| For the Year Ended December 31, | For the Three Months Ended December 31, | |||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||
| Net profit (loss) from continuing operations | 5.8 | (5.6 | ) | 0.4 | 1.7 | |||||
| Adjustments: | ||||||||||
| Depreciation, amortization and impairment of intangible assets | 0.6 | 3.5 | 0.2 | 0.1 | ||||||
| Financial expense (income), net | (0.4 | ) | 0.6 | (0.1 | ) | 0.1 | ||||
| Tax expense (benefit) | 1.4 | (0.5 | ) | 0.1 | * | |||||
| EBITDA (EBITDA loss) | 7.4 | (2.0 | ) | 0.6 | 1.9 | |||||
| Adjustments: | ||||||||||
| Impairment of goodwill | - | 6.3 | - | - | ||||||
| Share-based compensation | 2.0 | 0.9 | 0.9 | 0.3 | ||||||
| Adjusted EBITDA for the period | 9.4 | 5.2 | 1.5 | 2.2 | ||||||
| * Less than | ||||||||||
| For the Year Ended December 31, | For the Three Months Ended December 31, | |||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||
| Net profit (loss) from continuing operations | 5.8 | (5.6 | ) | 0.4 | 1.7 | |||||
| Adjustments: | ||||||||||
| Depreciation, amortization and impairment of intangible assets | 0.6 | 3.5 | 0.2 | 0.1 | ||||||
| Financial expense (income), net effects | 0.1 | 0.1 | (* | ) | 0.2 | |||||
| Deferred tax effects | (0.1 | ) | (0.5 | ) | (0.1 | ) | * | |||
| Impairment of goodwill | - | 6.3 | - | - | ||||||
| Share-based compensation | 2.0 | 0.9 | 0.9 | 0.3 | ||||||
| Non-IFRS net profit for the period | 8.4 | 4.7 | 1.4 | 2.3 | ||||||
| * Less than | ||||||||||
| For the Year Ended December 31, | For the Three Months Ended December 31, | ||||||
| 2024 | 2023 | 2024 | 2023 | ||||
| Gross profit from continuing operations | 23.9 | 18.8 | 5.3 | 5.3 | |||
| Adjustments: | |||||||
| Depreciation, amortization and impairment of intangible assets | 0.6 | 0.9 | 0.2 | 0.2 | |||
| Share-based compensation | * | * | * | * | |||
| Non-IFRS gross profit for the period | 24.5 | 19.7 | 5.5 | 5.5 | |||
| * Less than | |||||||
About Alarum Technologies Ltd.
Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) is a global provider of web data collection solutions, empowering organizations to gain a competitive edge by streamlining the collection, extraction, and analysis of large-scale structured data from public online sources. Our data collection solutions by NetNut, are based on our world’s fastest and most advanced and secured hybrid proxy network, which comprises both exit points based on our proprietary reflection technology and hundreds of servers located at our ISP partners around the world. Pushing the boundaries of innovation in data collection, we are building a robust platform, complemented by the Website Unblocker, Data Collector, Data Sets and AI data collector. As the impact of the AI revolution unfolds, Alarum, with its robust market-leading data collection offerings is preparing itself to play a meaningful role as the world reshapes in a new form.
For more information about Alarum and its web data collection solutions, please visit www.alarum.io.
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Investor Relations Contact:
investors@alarum.io
________________________
1 https://proxyway.com/research/proxy-market-research-2024
2 See definition under “Other Metrics”
3 The table below contains certain non-IFRS financial measures. See “Use of Non-IFRS Financial Results” for additional information regarding these measures and reconciliations to the most comparable IFRS measures.
4 As of the last day of the period.
FAQ
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