HUB Cyber Security Reports First Half 2024 Financial Results and Corporate Update
HUB Cyber Security (NASDAQ: HUBC) reported H1 2024 financial results showing revenues of $15.7 million, down from $25.0 million in H1 2023. The company achieved significant improvements in key metrics: gross margin increased to 9.5% from -7.6%, operating expenses decreased 71% to $16.5 million, and operating loss improved by 74%. The company is transitioning away from less profitable segments to focus on its core Secured Data Fabric platform and higher-margin offerings. Management expects H2 revenues to increase sequentially, driven by Cyber Security consulting and Secured Data Fabric clients.
HUB Cyber Security (NASDAQ: HUBC) ha riportato i risultati finanziari del primo semestre 2024, mostrando ricavi di 15,7 milioni di dollari, in calo rispetto ai 25,0 milioni di dollari del primo semestre 2023. L'azienda ha raggiunto significativi miglioramenti in metriche chiave: il margine lordo è aumentato al 9,5% rispetto al -7,6%, le spese operative sono diminuite del 71% a 16,5 milioni di dollari e la perdita operativa è migliorata del 74%. L'azienda sta effettuando una transizione lontano dai segmenti meno redditizi per concentrarsi sulla sua piattaforma core Secured Data Fabric e su offerte a margine più elevato. La direzione si aspetta che i ricavi del secondo semestre aumentino sequenzialmente, sostenuti dalla consulenza in Cyber Security e dai clienti della Secured Data Fabric.
HUB Cyber Security (NASDAQ: HUBC) informó los resultados financieros del primer semestre de 2024, mostrando ingresos de 15,7 millones de dólares, por debajo de los 25,0 millones de dólares en el primer semestre de 2023. La empresa logró mejoras significativas en métricas clave: el margen bruto aumentó al 9,5% desde -7,6%, los gastos operativos disminuyeron un 71% a 16,5 millones de dólares, y la pérdida operativa mejoró en un 74%. La empresa está cambiando de segmentos menos rentables para centrarse en su plataforma principal Secured Data Fabric y en ofertas de mayor margen. La dirección espera que los ingresos del segundo semestre aumenten secuencialmente, impulsados por la consultoría de Ciberseguridad y los clientes de Secured Data Fabric.
HUB Cyber Security (NASDAQ: HUBC)는 2024년 상반기 재무 결과를 보고 하였으며, 수익은 1570만 달러로 2023년 상반기의 2500만 달러에서 감소했습니다. 이 회사는 주요 지표에서 상당한 개선을 이루었으며, 총 마진은 -7.6%에서 9.5%로 증가했고, 운영 비용은 71% 감소하여 1650만 달러에 달했으며, 운영 손실은 74% 개선되었습니다. 이 회사는 수익성이 낮은 부문에서 벗어나 주요 플랫폼인 Secured Data Fabric와 더 높은 마진의 서비스에 집중하고 있습니다. 경영진은 사이버 보안 컨설팅 및 Secured Data Fabric 고객에 의해 하반기 수익이 순차적으로 증가할 것으로 기대하고 있습니다.
HUB Cyber Security (NASDAQ: HUBC) a publié les résultats financiers du premier semestre 2024, montrant des revenus de 15,7 millions de dollars, en baisse par rapport à 25,0 millions de dollars au premier semestre 2023. L'entreprise a réalisé des améliorations significatives dans des indicateurs clés : la marge brute a augmenté à 9,5% contre -7,6%, les charges d'exploitation ont diminué de 71% à 16,5 millions de dollars, et la perte d'exploitation s'est améliorée de 74%. L'entreprise se concentre sur des segments plus rentables, en se détournant des segments moins profitables pour se concentrer sur sa plateforme principale Secured Data Fabric et des offres à plus forte marge. La direction s'attend à une augmentation séquentielle des revenus du second semestre, soutenue par le conseil en cybersécurité et les clients de Secured Data Fabric.
HUB Cyber Security (NASDAQ: HUBC) hat die finanziellen Ergebnisse für das erste Halbjahr 2024 veröffentlicht und berichtet von Einnahmen in Höhe von 15,7 Millionen Dollar, was einem Rückgang von 25,0 Millionen Dollar im ersten Halbjahr 2023 entspricht. Das Unternehmen erzielte signifikante Verbesserungen in den wichtigsten Kennzahlen: Die Bruttomarge stieg auf 9,5% von -7,6%, die Betriebskosten sanken um 71% auf 16,5 Millionen Dollar und der operative Verlust verbesserte sich um 74%. Das Unternehmen wechselt von weniger profitablen Segmenten zu einem Fokus auf seine Kernplattform Secured Data Fabric und höher rentierliche Angebote. Das Management erwartet, dass die Einnahmen im zweiten Halbjahr sequenziell steigen werden, unterstützt durch Cyber Security Beratung und Secured Data Fabric Kunden.
- Gross margin improved significantly to 9.5% from -7.6% in H1 2023
- Operating expenses reduced by 71% to $16.5M from $57.5M in H1 2023
- Operating loss improved by 74% compared to prior year
- Successfully eliminated majority of high-cost debt
- Expected sequential revenue increase in H2 2024
- Revenue declined to $15.7M from $25.0M in H1 2023
- Still operating at a loss despite improvements
Insights
The H1 2024 results reveal a complex transformation story. Revenue declined by
The company's pivot to higher-margin offerings, particularly the Secured Data Fabric platform with projected margins of
The Secured Data Fabric platform represents a significant technological advancement in data management. Unlike traditional data lakes, it offers real-time secure data retrieval with unified access across silos - a important differentiator in the financial sector where data fragmentation and security are major challenges.
The expansion into the "HUB 360" suite shows strategic product evolution, creating an end-to-end solution for banks' compliance and security needs. The growing RFP pipeline across diverse sectors like healthcare and travel tech validates the platform's versatility and market demand.
A Year of Transformation, Momentum, and Leadership in Secure Data Solutions and Modern Compliance
TEL AVIV, Israel, Dec. 02, 2024 (GLOBE NEWSWIRE) -- via IBN – HUB Cyber Security Ltd. (NASDAQ: HUBC) (“HUB”; or the “Company”), a leading provider of cybersecurity solutions and advanced data fabric, today announced its financial results for the first half of 2024.
Financial results for H1 2024:
- Revenues:
$15.7 million , compared to$25.0 million in H1 2023. The revenue shift highlights HUB's strategic effort to optimize its business sectors by transitioning away from less profitable segments, including certain parts of its IT Services and Cyber Consultancy operations. Instead, HUB has made great strides in refining its blend of solutions to focus on core, higher-margin offerings, while positioning itself for more sustainable and profitable growth in the future. - Gross margin improved significantly to
9.5% in H1 2024, compared to -7.6% in H1 2023. This improvement reflects the impact of the Company’s strategic shift toward higher-margin business areas, allowing HUB to optimize profitability despite a smaller revenue base. By refining its focus, management has built the foundation for a more sustainable financial performance moving forward. - Operating expenses for H1 2024 totaled
$16.5 million , a significant71% reduction compared to$57.5 million in H1 2023. This dramatic decline in expenses reflects management’s disciplined cost management and focus on streamlining operations as the Company transitions to a more focused, higher-margin business model. - Operating loss improved significantly by
74% , or$44.5 million , compared to the prior year, reflecting the positive impact of streamlined operations and a more efficient organizational structure. This improvement also highlights the normalization of expenses following the high legal costs and related expenses incurred in H1 2023 related to the SPAC merger.
Noah Hershcoviz, CEO of HUB Security, said, "We have made significant strides in our transformation journey. Over the past year, the Company has taken decisive actions to streamline operations, improve focus, and position itself for sustainable, high-margin growth. I am proud of our new leadership team for planning and executing a strategic turnaround plan, which has resulted in a stronger and more resilient business.
As we look ahead to 2025, we are not merely aiming for success, but we are shaping it. The solid foundation HUB established over the past year has positioned us to capitalize on emerging opportunities with confidence and precision. Building on the momentum of our successful Secured Data Fabric deployments, we are experiencing strong and growing demand for our solutions.
This momentum sets the stage for the anticipated launch of our groundbreaking "HUB 360" approach, a comprehensive suite encompassing assessment, deployment, and client management. We believe this new business line represents a transformative opportunity, offering projected margins of 50
H1 2024 marked the start of our turnaround, and H2 has continued this momentum. We expect revenues in H2 to increase sequentially, stemming from our Cyber Security consulting business and Secured Data Fabric clients, resulting from our successful Secured Data Fabric deployments. We are confident that our strategy, centered on our Secured Data Fabric platform, will continue to drive growth and deliver exceptional value for our clients and shareholders."
Secured Data Fabric: Innovation and Market Penetration
The Secured Data Fabric platform is the Company's primary growth engine. This cutting-edge technology consolidates data from multiple silos into a unified, secure system that enables clients to navigate vast data pools, ensure compliance, and protect sensitive information with advanced encryption.
HUB’s solution stands apart from traditional data lake systems by securely retrieving data in real-time, offering a transformative approach that reduces costs and mitigates security vulnerabilities. This unique value proposition has driven strong demand, reflected in a significant increase in our backlog and a surge in RFPs from both existing and new clients.
Leading financial institutions have already embraced the platform, and we are seeing growing interest across a range of sectors, including healthcare, payment companies, transportation, travel tech, and other regulated industries. This broadening demand highlights the versatility of our solution in addressing critical challenges in data security and operational efficiency across diverse verticals.
With an expanding pipeline of opportunities and a proven ability to deliver tailored solutions at scale, HUB is well-positioned for continued growth and to further establish itself as a trusted partner across industries.
Legacy IT Services: Stability and Cross-Selling Opportunities
HUB’s legacy IT services business provides a stable foundation with longstanding relationships across key sectors. The Company’s trusted advisor role to global enterprises enables HUB to cross-sell its innovative solutions into these well-established accounts. We anticipate keeping a steady growth in the turnover and keeping the momentum in optimizing our margins.
A Year of Transformation: Restructuring and Strategic Focus
In 2024, HUB made significant strides in its strategic restructuring efforts, decisively closing underperforming businesses and optimizing its operations through targeted headcount reductions. We believe these bold actions have transformed HUB into a leaner, more agile organization, delivering tangible improvements in operational efficiency and setting a clear path toward sustained profitability.
Our products are already driving revenue growth, underscoring the market's confidence in our solutions. Additionally, our revitalized R&D team, led by the seasoned expertise of Mr. Nachman Geva, is accelerating innovation and ensuring that our offerings remain at the forefront of industry needs. HUB is not just evolving—we are making real, impactful progress and optimizing every aspect of our business for a stronger, more dynamic future.
We have successfully eliminated the majority of our high-cost debt, refinancing the business with long-term investors who share our vision for sustainable growth. These strategic actions are beginning to streamline our liabilities and strengthen our balance sheet, providing enhanced financial flexibility to invest in high-growth opportunities, including the continued expansion of our Secured Data Fabric platform.
Building for the Future: Talent and Leadership
In the past year HUB has focused on building a world-class team to execute the company’s growth strategy. We have appointed top-tier industry talent, ensuring the Company is well-positioned to expand its market presence and strengthen its competitive position.
Outlook: A Strong Foundation for Long-Term Growth
Looking ahead, we believe HUB is poised for continued growth driven by its Secured Data Fabric platform. With a solid foundation in place, we believe the Company is well-positioned to capitalize on the growing demand for secure, scalable data management solutions in the financial and enterprise sectors.
In today’s financial landscape, banks face a growing compliance burden with increasing demands for data protection, traceability, and transparency. Traditional data security solutions often fail to meet these heightened regulatory standards, and we see HUB leading the charge in delivering innovative, reliable solutions that empower banks to stay ahead of compliance challenges.
About HUB Security Ltd.
HUB Cyber Security Ltd (“HUB”) was established in 2017 by veterans of the elite intelligence units of the Israeli Defense Forces. The Company specializes in unique cyber security solutions protecting sensitive commercial and government information. The company debuted an advanced encrypted computing solution to prevent hostile intrusions at the hardware level while introducing a novel set of data theft prevention solutions. HUB provides innovative cybersecurity computing appliances and a wide range of cybersecurity services worldwide. Hub's Secured Data Fabric is a revolutionary product developed in partnership with BlackSwan Technologies that is emerging as a leader in highly secure data management and unification.
Forward-Looking Statements
This press release contains forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995, including statements about HUB’s financial condition, results of operations, earnings outlook and prospects of its debt refinancing, new business line and Secured Data Fabric solution. Forward-looking statements are typically identified by words such as “plan,” “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “future,” “forecast,” “project,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict,” “seem,” “should,” “will,” “would” and other similar words and expressions, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements are based on the current expectations of the management of HUB Security, as applicable, and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. These forward-looking statements involve a number of risks, uncertainties, or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those discussed and identified in public filings made with the SEC by the HUB Security and the following: (i) significant uncertainty regarding the adequacy of HUB Security’s liquidity and capital resources and its ability to repay its obligations as they become due; (ii) the war between Israel and Hamas commenced in October 2023, and the expansion of hostilities to other fronts, which may harm Israel’s economy and HUB Security’s business; (iii) expectations regarding HUB Security's strategies and future financial performance, including its future business plans or objectives, prospective performance and opportunities and competitors, revenues, products and services, pricing, operating expenses, market trends, liquidity, cash flows and uses of cash, capital expenditures, and HUB Security's ability to invest in growth initiatives and pursue acquisition opportunities; (iv) the outcome of any legal or regulatory proceedings against HUB Security in connection with our previously announced internal investigation or otherwise; (v) the ability to cure and meet stock exchange continued listing standards and remain listed on the Nasdaq; (vi) competition, the ability of HUB Security to grow and manage growth profitably, maintain relationships with customers and suppliers and retain its management and key employees; (vii) limited liquidity and trading of HUB Security’s securities; (viii) geopolitical risk, including military action and related sanctions, and changes in applicable laws or regulations; (ix) the possibility that HUB Security may be adversely affected by other economic, business, and/or competitive factors; (i) other risks and uncertainties set forth in the sections entitled "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements" in HUB Security’s Annual Report on Form 20-F/A filed on October 22, 2024.
Should one or more of these risks or uncertainties materialize, or should any of the assumptions made by the management of HUB Security prove incorrect, actual results may vary in material respects from those expressed or implied in these forward-looking statements.
All subsequent written and oral forward-looking statements concerning the business combination or other matters addressed in this press release and attributable to HUB Security or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in the press release. Except to the extent required by applicable law or regulation, HUB Security undertakes no obligation to update these forward-looking statements to reflect events or circumstances after the date of this press release to reflect the occurrence of unanticipated events.
Investor Relations
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