Alarum Technologies Announces Second Quarter 2024 Results
Alarum Technologies (Nasdaq, TASE: ALAR) reported strong Q2 2024 results, with record revenues of $8.9 million, up 27% year-over-year. The company's NetNut data collection product drove growth, reaching $8.7 million in Q2 2024. For H1 2024, revenues hit a record $17.3 million, with NetNut contributing $16.7 million, a 99% year-over-year increase. The company's cash balance stood at $21.6 million, positioning it well for future investments. Alarum expanded its customer base, including a Fortune 100 client in Q3 2024, and maintained a strong Net Retention Rate of 1.59. For Q3 2024, the company expects continued year-over-year growth with estimated revenues of $7 million ±3% and Adjusted EBITDA between $0.8 to $1.0 million.
Alarum Technologies (Nasdaq, TASE: ALAR) ha riportato risultati solidi per il secondo trimestre del 2024, con entrate record di 8,9 milioni di dollari, in aumento del 27% rispetto all'anno precedente. Il prodotto di raccolta dati NetNut ha guidato la crescita, raggiungendo 8,7 milioni di dollari nel secondo trimestre del 2024. Per il primo semestre del 2024, le entrate hanno toccato un record di 17,3 milioni di dollari, con NetNut che ha contribuito con 16,7 milioni di dollari, un aumento del 99% rispetto all'anno precedente. Il saldo di cassa dell'azienda era di 21,6 milioni di dollari, posizionandola bene per futuri investimenti. Alarum ha ampliato la propria base clienti, compreso un cliente della Fortune 100 nel terzo trimestre del 2024, e ha mantenuto un forte Tasso di Retenzione Netto di 1,59. Per il terzo trimestre del 2024, l'azienda prevede una continua crescita anno su anno con entrate stimate di 7 milioni di dollari ±3% e un EBITDA Adjusted compreso tra 0,8 e 1,0 milioni di dollari.
Alarum Technologies (Nasdaq, TASE: ALAR) reportó sólidos resultados para el segundo trimestre de 2024, con ingresos récord de 8,9 millones de dólares, un incremento del 27% interanual. El producto de recolección de datos NetNut impulsó el crecimiento, alcanzando 8,7 millones de dólares en el segundo trimestre de 2024. Para el primer semestre de 2024, los ingresos alcanzaron un récord de 17,3 millones de dólares, con NetNut contribuyendo con 16,7 millones de dólares, un aumento del 99% en comparación con el año anterior. El saldo de caja de la compañía se situó en 21,6 millones de dólares, lo que la posiciona bien para futuras inversiones. Alarum amplió su base de clientes, incluyendo un cliente de Fortune 100 en el tercer trimestre de 2024, y mantuvo una sólida Tasa de Retención Neta de 1,59. Para el tercer trimestre de 2024, la empresa espera un crecimiento continuo año tras año con ingresos estimados de 7 millones de dólares ±3% y EBITDA ajustado entre 0,8 y 1,0 millones de dólares.
Alarum Technologies (Nasdaq, TASE: ALAR)가 2024년 2분기 강력한 실적을 발표했습니다. 8.9백만 달러의 기록적인 매출을 올리며 전년 동기 대비 27% 증가했습니다. 회사의 데이터 수집 제품인 NetNut이 성장을 이끌어 2024년 2분기 8.7백만 달러에 도달했습니다. 2024년 상반기 동안 매출은 17.3백만 달러로 기록을 세웠으며, NetNut이 16.7백만 달러를 기여하여 전년 대비 99% 증가했습니다. 회사의 현금 잔고는 2160만 달러로, 향후 투자에 유리한 위치를 차지하고 있습니다. Alarum은 2024년 3분기에 Fortune 100 고객을 포함해 고객 기반을 확장했으며, 1.59의 높은 순 유지 비율을 유지했습니다. 2024년 3분기에는 전년 대비 지속적인 성장을 기대하며, 예상 매출은 약 700만 달러 ±3% 및 조정된 EBITDA는 약 80만 달러에서 100만 달러 사이입니다.
Alarum Technologies (Nasdaq, TASE: ALAR) a annoncé des résultats solides pour le deuxième trimestre 2024, avec des revenus records de 8,9 millions de dollars, en hausse de 27 % par rapport à l'année précédente. Le produit de collecte de données NetNut a été le moteur de cette croissance, atteignant 8,7 millions de dollars au deuxième trimestre 2024. Pour le premier semestre 2024, les revenus ont atteint un record de 17,3 millions de dollars, avec NetNut contribuant à hauteur de 16,7 millions de dollars, soit une augmentation de 99 % par rapport à l'année précédente. Le solde de trésorerie de l'entreprise était de 21,6 millions de dollars, lui permettant de se positionner favorablement pour de futurs investissements. Alarum a élargi sa base de clients, notamment avec un client Fortune 100 au troisième trimestre 2024, et a maintenu un taux de fidélisation net solide de 1,59. Pour le troisième trimestre 2024, l'entreprise prévoit une poursuite de la croissance d'une année sur l'autre avec des revenus estimés à 7 millions de dollars ±3% et un EBITDA ajusté compris entre 0,8 et 1,0 millions de dollars.
Alarum Technologies (Nasdaq, TASE: ALAR) hat starke Ergebnisse für das zweite Quartal 2024 berichtet, mit Rekordumsätzen von 8,9 Millionen Dollar, was einem Anstieg von 27% im Vergleich zum Vorjahr entspricht. Das NetNut-Datensammlungsprodukt trieb das Wachstum voran und erreichte im zweiten Quartal 2024 8,7 Millionen Dollar. Für das erste Halbjahr 2024 beliefen sich die Umsätze auf einen Rekordwert von 17,3 Millionen Dollar, wobei NetNut 16,7 Millionen Dollar trugen, was einem Anstieg von 99% im Vergleich zum Vorjahr entspricht. Der Liquiditätsstand des Unternehmens lag bei 21,6 Millionen Dollar, was es gut für zukünftige Investitionen positioniert. Alarum hat seine Kundenbasis erweitert, einschließlich eines Fortune-100-Kunden im dritten Quartal 2024, und behielt eine starke Net Retention Rate von 1,59 bei. Für das dritte Quartal 2024 erwartet das Unternehmen ein weiterhin jährliches Wachstum mit geschätzten Einnahmen von 7 Millionen Dollar ±3% und einem bereinigten EBITDA zwischen 0,8 und 1,0 Millionen Dollar.
- Record Q2 2024 revenues of $8.9 million, up 27% year-over-year
- NetNut revenues reached $8.7 million in Q2 2024, up from $5.0 million in Q2 2023
- H1 2024 revenues increased to a record $17.3 million
- Net Retention Rate (NRR) reached 1.59 as of June 30, 2024
- Cash balance of $21.6 million as of June 30, 2024
- H1 2024 cash flow from operating activities reached $6.3 million
- Shareholders' equity increased to $20.4 million as of June 30, 2024
- Finance expenses in Q2 2024 were $2.5 million, compared to finance income of $0.3 million in Q2 2023
- Income tax expenses totaled $0.8 million in H1 2024, compared to a tax benefit of $0.2 million in H1 2023
- Q3 2024 revenues are expected to be impacted by market dynamics affecting some customers since June
Insights
Alarum Technologies' Q2 2024 results demonstrate strong growth and improved profitability. Key highlights include:
- Record revenues of
$8.9 million in Q2, up27% year-over-year - NetNut revenue growth of
74% to$8.7 million - Improved gross margin of
76.9% - Positive H1 2024 net profit of
$1.1 million - Strong cash position of
$21.6 million
The company's focus on enterprise internet access through NetNut is paying off, with impressive customer acquisition and retention metrics. However, Q3 guidance suggests potential short-term challenges, with revenue expected to dip slightly to
Alarum's performance in the data collection market is noteworthy. The company is expanding its customer base, including a Fortune 100 client and showing strong customer retention with a Net Retention Rate of 1.59. New customer onboarding is particularly impressive, with
The company's move into AI and data labeling markets with Web-Unblocker shows foresight, as these are high-growth areas. However, investors should watch for potential market saturation and increased competition in the IP Proxy Network segment. The projected Q3 slowdown may indicate market volatility or seasonal effects that require further analysis.
Alarum's technological advancements are important for its growth strategy. The company has significantly expanded its network infrastructure, enabling it to handle higher traffic and support larger customers. This scalability is essential for capturing market share in the competitive data collection industry.
The development of Web-Unblocker and AI data collection products shows Alarum's commitment to innovation. These offerings could provide a competitive edge and open new revenue streams. However, the tech landscape is rapidly evolving and Alarum must continue to invest in R&D to stay ahead. The company's ability to integrate AI capabilities into its data products will be a key factor in maintaining its technological advantage and driving future growth.
Concludes strong first half of 2024 with record revenues of
solid cash generation and
TEL AVIV, Israel, Aug. 26, 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 announced financial results for the second quarter ended June 30, 2024.
“Today we announced the results of yet another strong record-breaking quarter, marking the first year since we announced our shift to focusing on Enterprise Internet Access through our NetNut data collection product line,” said Mr. Shachar Daniel, Chief Executive Officer of Alarum. “As we intend to establish the broadest data collection and insights offering in the market, we continued to increase our market share in the IP Proxy Network (IPPN) segment, won initial sales in the data collection and labelling market with our new Web-Unblocker and continued to make progress towards providing our customers with artificial intelligence (AI) and analysis capabilities. Our cash balance positions us well to invest in prospects that will provide the foundation for sustained growth.”
Mr. Daniel concluded: “Looking into the third quarter of 2024, I am extremely proud that NetNut revenues are expected to surpass the full year 2023 revenue-bar within the first three quarters of 2024. The market we operate in is an ever evolving and nascent market and as we continue to expand our customer base, enhance our offerings and grow the business we may experience some short-term variances. In the third quarter of 2024, we estimate continued year-over-year growth. While third quarter revenues are assumed to be impacted by market dynamics that some of our customers have been experiencing since June, our main growth KPIs are positive: consistent growth in the monthly revenue rates from June to July and into August. We evaluate the value created by new customers over their lifecycle. Our new customer-indicator shows enhanced growth in the second quarter compared to the first quarter, and to the last four quarters’ average. Furthermore, we will maintain strong net customer retention rates in the third quarter, in line with our growth strategy and strong balance sheet. These are all clear indicators of the strength and resilience of our business, as Alarum is in it for the long run.”
Recent Business Highlights
As the Company focuses on expanding its presence in the Data Collection Market, it:
| - | Added major and highly regarded brand names to the NetNut customer base, including a Fortune 100 customer in Q3 2024 |
| - | Onboarded in Q2 2024 dozens of new customers who generated approximately |
| - | To date, NetNut customers have been generating revenues at an average rate of about 15-18 times higher than their initial month’s activity over a period of approximately three years |
| - | Net Retention Rate (“NRR”)1 reached 1.59 as of June 30, 2024 |
| - | Continued to expand and further the Company’s network ; its infrastructure is now capable of handling significantly higher traffic, supporting larger and a growing number of customers that can drive scalable and profitable growth |
| - | Continued to invest in and make substantial progress into the Data Collection and Labelling Market with the new Web-Unblocker and the AI Data Collection products |
| - | Generated initial revenues from new customers who placed orders for the Web-Unblocker in Q2 2024 |
| - | Continued to advance towards adding AI and analysis capabilities to the Company’s Data Products |
| 1 | NRR represents the average growth rate for the preceding four quarters compared to the equivalent period in the prior year, of current customers only, while excluding revenues generated from new customers but including up-sales and cross-sales as well as churn. |
| Summary of Financial Results2 | ||||||||||||||||
| (in millions of U.S. dollars, rounded, except per share amounts and margins) | ||||||||||||||||
| For the Six Months Ended June 30, | For the Three Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Total Revenue | 17.3 | 12.7 | 8.9 | 7.0 | ||||||||||||
| of which, NetNut Revenue was | 16.7 | 8.4 | 8.7 | 5.0 | ||||||||||||
| Gross profit | 13.4 | 8.3 | 6.8 | 4.5 | ||||||||||||
| Gross margin (in percentage) | 77.7 | % | 65.3 | % | 76.9 | % | 64.7 | % | ||||||||
| Non-IFRS gross margin (in percentage) | 79.9 | % | 69.9 | % | 78.5 | % | 71.0 | % | ||||||||
| Total operating expenses | 8.1 | 17.0 | 4.2 | 12.8 | ||||||||||||
| Finance income (expense), net | (3.3 | ) | 0.1 | (2.5 | ) | 0.3 | ||||||||||
| Tax benefit (expense) | (0.8 | ) | 0.2 | (0.5 | ) | 0.2 | ||||||||||
| Net profit (loss) for the period | 1.1 | (8.4 | ) | (0.4 | ) | (7.7 | ) | |||||||||
| Adjusted EBITDA | 6.6 | 1.2 | 3.4 | 1.1 | ||||||||||||
| Basic earnings (loss) per ADS (in U.S. Dollars) | $ | 0.16 | $ | (2.51 | ) | $ | (0.05 | ) | $ | (2.26 | ) | |||||
| Non-IFRS basic earnings per ADS (in U.S. Dollars) | $ | 0.86 | $ | 0.42 | $ | 0.41 | $ | 0.45 | ||||||||
| Cash, cash equivalents3 | 21.6 | 3.8 | 21.6 | 3.8 | ||||||||||||
| Shareholders’ equity4 | 20.4 | 6.1 | 20.4 | 6.1 | ||||||||||||
Second Quarter and First Half 2024 Financial Analysis
| ● | Revenues grew |
| ● | Operating expenses totaled |
| ● | Finance expenses in Q2 2024 were |
| 2 | 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. |
| 3 | As of the last day of the period. |
| 4 | As of the last day of the quarter. |
| ● | Income tax expenses totaled |
| ● | H1 2024 cash flow from operating activities reached |
| ● | As of June 30, 2024, shareholders’ equity totaled |
| ● | Outstanding ordinary share count as of June 30, 2024, was approximately 68.4 million, or 6.8 million in ADSs. |
Financial Outlook
“Alarum ended Q2 2024 with growing revenues, enhanced profitability, strong cash generation and a solid balance sheet, which provides the flexibility and resources to invest in the areas that will drive future growth,” said Mr. Shai Avnit, Chief Financial Officer of Alarum. “Today, for the first time, we are providing quarterly guidance, as we aim to enhance transparency. We anticipate Q3 2024 revenue to demonstrate year-over-year growth, and in fact, NetNut revenues are expected to cross the full-year 2023 revenue-bar of
Second 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, August 26, 2024, at 8:30 a.m. ET, 5:30 a.m. Pacific time to discuss the second quarter 2024 results and the third quarter 2024 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 dialing in. If you have any difficulty connecting, please contact Michal Efraty on behalf of Alarum at +972-(0)-52-3044404. Replay: The conference call will be broadcast live and available for replay here, after 11:30 a.m. ET on August 26, 2024, through September 24, 2024. Toll-free replay numbers: 1-844-512-2921 or 1-412-317-6671, ID: 13748415.
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 its guidance regarding revenue and Adjusted EBITDA, potential due to its cash position and resources, growth, profitability, AI and analysis capabilities, customer retention, prospect, flexibility, market expansion and 2024 NetNut revenues, as well as the expected benefits and impacts of its existing and future products and services. 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. 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) | ||||||||||||
| June 30, | December 31, | |||||||||||
| 2024 | 2023 | 2023 | ||||||||||
| (Unaudited) | (Audited) | |||||||||||
| Assets | ||||||||||||
| Current assets: | ||||||||||||
| Cash and cash equivalents | 21,626 | 3,813 | 10,872 | |||||||||
| Short-term restricted deposits | - | 500 | - | |||||||||
| Trade receivables, net | 2,471 | 2,279 | 1,994 | |||||||||
| Other receivables | 961 | 481 | 399 | |||||||||
| 25,058 | 7,073 | 13,265 | ||||||||||
| Non-current assets: | ||||||||||||
| Long-term restricted deposits | - | 111 | - | |||||||||
| Long-term deposit | 102 | 119 | 104 | |||||||||
| Other non-current assets | 94 | 111 | 145 | |||||||||
| Property and equipment, net | 119 | 92 | 88 | |||||||||
| Right-of-use assets | 638 | 605 | 779 | |||||||||
| Deferred tax assets | 298 | - | 181 | |||||||||
| Goodwill | 4,118 | 4,118 | 4,118 | |||||||||
| Intangible assets, net | 1,082 | 1,901 | 1,386 | |||||||||
| Total non-current assets | 6,451 | 7,057 | 6,801 | |||||||||
| Total assets | 31,509 | 14,130 | 20,066 | |||||||||
| Liabilities and equity | ||||||||||||
| Current liabilities: | ||||||||||||
| Trade payables | 570 | 963 | 369 | |||||||||
| Other payables | 3,058 | 2,312 | 2,439 | |||||||||
| Current maturities of long-term loan | 564 | 497 | 290 | |||||||||
| Short-term bank loans | - | 1,601 | - | |||||||||
| Contract liabilities | 2,285 | 1,289 | 1,983 | |||||||||
| Derivative financial instruments | 3,409 | 2 | 109 | |||||||||
| Short-term lease liabilities | 362 | 227 | 370 | |||||||||
| Total current liabilities | 10,248 | 6,891 | 5,560 | |||||||||
| Non-current liabilities: | ||||||||||||
| Long-term loans | 398 | 647 | 802 | |||||||||
| Long-term lease liabilities | 439 | 405 | 523 | |||||||||
| Deferred tax liabilities | - | 63 | - | |||||||||
| Total non-current liabilities | 837 | 1,115 | 1,325 | |||||||||
| Total liabilities | 11,085 | 8,006 | 6,885 | |||||||||
| Equity: | ||||||||||||
| Ordinary shares | - | - | - | |||||||||
| Share premium | 108,963 | 95,754 | 100,576 | |||||||||
| Other equity reserves | 12,705 | 15,567 | 14,938 | |||||||||
| Accumulated deficit | (101,244 | ) | (105,197 | ) | (102,333 | ) | ||||||
| Total equity | 20,424 | 6,124 | 13,181 | |||||||||
| Total liabilities and equity | 31,509 | 14,130 | 20,066 | |||||||||
| Condensed Consolidated Statements of Profit or Loss | ||||||||||||||||||||
| (in thousands of U.S. dollars, except per share amounts) | ||||||||||||||||||||
| | For the Six Months Ended June 30, | For the Three Months Ended June 30, | For the Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2023 | ||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||||||||||||||||
| Continuing operations | ||||||||||||||||||||
| Revenue | 17,260 | 12,664 | 8,884 | 6,985 | 26,521 | |||||||||||||||
| Cost of revenue | 3,854 | 4,390 | 2,051 | 2,463 | 7,711 | |||||||||||||||
| Gross profit | 13,406 | 8,274 | 6,833 | 4,522 | 18,810 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Research and development | 2,143 | 1,948 | 1,121 | 886 | 3,557 | |||||||||||||||
| Sales and marketing | 3,372 | 6,472 | 1,647 | 4,289 | 10,035 | |||||||||||||||
| General and administrative | 2,626 | 2,286 | 1,386 | 1,291 | 4,406 | |||||||||||||||
| Impairment of goodwill | - | 6,311 | - | 6,311 | 6,311 | |||||||||||||||
| Total operating expenses | 8,141 | 17,017 | 4,154 | 12,777 | 24,309 | |||||||||||||||
| Operating profit (loss) | 5,265 | (8,743 | ) | 2,679 | (8,255 | ) | (5,499 | ) | ||||||||||||
| Finance income (expense), net | (3,345 | ) | 116 | (2,497 | ) | 313 | (590 | ) | ||||||||||||
| Profit (loss) from continuing operations before income tax | 1,920 | (8,627 | ) | 182 | (7,942 | ) | (6,089 | ) | ||||||||||||
| Tax benefit (expense) | (831 | ) | 238 | (533 | ) | 242 | 482 | |||||||||||||
| Profit (loss) from continuing operations, net of income tax | 1,089 | (8,389 | ) | (351 | ) | (7,700 | ) | (5,607 | ) | |||||||||||
| Profit from discontinued operations, net of income tax | - | - | - | - | 82 | |||||||||||||||
| Net profit (loss) for the period | 1,089 | (8,389 | ) | (351 | ) | (7,700 | ) | (5,525 | ) | |||||||||||
| Basic and diluted profit (loss) per share: | ||||||||||||||||||||
| Continuing operations | $ | 0.02 | $ | (0.25 | ) | $ | (0.01 | ) | $ | (0.23 | ) | $ | (0.14 | ) | ||||||
| Discontinued operations | - | - | - | - | * | |||||||||||||||
| $ | 0.02 | $ | (0.25 | ) | $ | (0.01 | ) | $ | (0.23 | ) | $ | (0.14 | ) | |||||||
| Basic profit (loss) per ADS: | ||||||||||||||||||||
| Continuing operations | $ | 0.16 | $ | (2.51 | ) | $ | (0.05 | ) | $ | (2.26 | ) | $ | (1.35 | ) | ||||||
| Discontinued operations | - | - | - | - | * | |||||||||||||||
| $ | 0.16 | $ | (2.51 | ) | $ | (0.05 | ) | $ | (2.26 | ) | $ | (1.35 | ) | |||||||
| * | 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, finance 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, finance income (expense) effects primarily related to derivative financial instruments as well as long-term loan, 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) represents the average growth rates for the preceding four quarters compared to the equivalent period a year earlier, of current customers only, without the revenues generated from new customers, but including up-sales and cross-sales on one hand and churn on the other hand. NRR greater than 1.00 indicates that the Company experiences revenue growth from its existing customer base in the specific period even after accounting for lost revenue due to customers’ churn. Conversely, an NRR lower than 1.00 suggests that the Company loses revenue from existing customers in the specific period due to churn which is higher than revenue gain through up-sells or cross-sells.
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 six and three months ended June 30, 2024 and 2023, and for the year ended December 31, 2023:
| For the Six Months Ended June 30, | For the Three Months Ended June 30, | For the Year Ended December 31, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2023 | ||||||||||||||||
| Net profit (loss) from continuing operations | 1.1 | (8.4 | ) | (0.3 | ) | (7.7 | ) | (5.6 | ) | |||||||||||
| Adjustments: | ||||||||||||||||||||
| Depreciation, amortization and impairment of intangible assets | 0.3 | 3.0 | 0.1 | 2.7 | 3.5 | |||||||||||||||
| Finance expense (income), net | 3.4 | (0.1 | ) | 2.5 | (0.3 | ) | 0.6 | |||||||||||||
| Tax expense (tax benefit) | 0.8 | (0.2 | ) | 0.5 | (0.2 | ) | (0.5 | ) | ||||||||||||
| EBITDA (EBITDA loss) | 5.6 | (5.7 | ) | 2.8 | (5.5 | ) | (2.0 | ) | ||||||||||||
| Adjustments: | ||||||||||||||||||||
| Impairment of goodwill | - | 6.3 | - | 6.3 | 6.3 | |||||||||||||||
| Share-based compensation | 1.0 | 0.6 | 0.6 | 0.3 | 0.9 | |||||||||||||||
| Adjusted EBITDA for the period | 6.6 | 1.2 | 3.4 | 1.1 | 5.2 | |||||||||||||||
| For the Six Months Ended June 30, | For the Three Months Ended June 30, | For the Year Ended December 31, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2023 | ||||||||||||||||
| Net profit (loss) from continuing operations | 1.1 | (8.4 | ) | (0.3 | ) | (7.7 | ) | (5.6 | ) | |||||||||||
| Adjustments: | ||||||||||||||||||||
| Depreciation, amortization and impairment of intangible assets | 0.3 | 3.0 | * | 2.7 | 3.5 | |||||||||||||||
| Finance expense, net effects | 3.3 | 0.1 | 2.5 | 0.1 | 0.1 | |||||||||||||||
| Deferred tax effects | (0.1 | ) | (0.2 | ) | * | (0.2 | ) | (0.5 | ) | |||||||||||
| Impairment of goodwill | - | 6.3 | - | 6.3 | 6.3 | |||||||||||||||
| Share-based compensation | 1.0 | 0.6 | 0.6 | 0.3 | 0.9 | |||||||||||||||
| Non-IFRS net profit for the period | 5.6 | 1.4 | 2.8 | 1.5 | 4.7 | |||||||||||||||
| * | Less than |
| For the Six Months Ended June 30, | For the Three Months Ended June 30, | For the Year Ended December 31, | ||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | 2023 | ||||||||||||||||
| Gross profit from continuing operations | 13.4 | 8.3 | 6.8 | 4.5 | 18.8 | |||||||||||||||
| Adjustments: | ||||||||||||||||||||
| Depreciation, amortization and impairment of intangible assets | 0.3 | 0.6 | 0.1 | 0.4 | 0.9 | |||||||||||||||
| Share-based compensation | * | * | * | * | * | |||||||||||||||
| Non-IFRS gross profit for the period | 13.7 | 8.9 | 6.9 | 4.9 | 19.7 | |||||||||||||||
| * | Less than |
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, our enterprise internet access and web data collection arm, are based on our world’s fastest and most advanced and secured hybrid proxy network, enabling our customers to collect data anonymously at any scale from any public sources over the web. Our network comprises both exit points based on our proprietary reflection technology and hundreds of servers located at our ISP partners around the world. The infrastructure is optimally designed to guarantee privacy, quality, stability, and the speed of the service.
For more information about Alarum and its internet access and web data collection solutions, please visit www.alarum.io.
Subscribe to our YouTube channel
Investor Relations Contacts:
Michal Efraty
+972-(0)52-3044404
investors@alarum.io
FAQ
What were Alarum Technologies' (ALAR) Q2 2024 revenue results?
How much did Alarum's (ALAR) NetNut product line contribute to Q2 2024 revenues?
What is Alarum Technologies' (ALAR) financial outlook for Q3 2024?
What was Alarum Technologies' (ALAR) cash position as of June 30, 2024?
How did Alarum Technologies' (ALAR) Net Retention Rate (NRR) perform in Q2 2024?
