HUB Security Reports Fiscal 2023 Financial Results
HUB Security (NASDAQ: HUBC) reported its fiscal 2023 financial results, marking a new chapter with new leadership and strategic moves. Key highlights include:
- Revenue of $42.6 million
- Gross profit of $750K
- Operating loss of $(77.7) million
- Adjusted EBITDA loss of $(12.2) million
- Cash and equivalents of $5.2 million as of December 31, 2023
The company recorded a non-cash impairment charge of $15.3 million due to macroeconomic factors. CEO Noah Hershcoviz highlighted strategic collaborations, debt reduction, and positioning in the secured data fabric market as key developments. HUB Security aims to expedite reporting for H1 2024 and plans a conference call to discuss future plans.
HUB Security (NASDAQ: HUBC) ha riportato i risultati finanziari per l'anno fiscale 2023, segnando un nuovo capitolo con una nuova leadership e strategie innovative. I punti salienti includono:
- Ricavi di 42,6 milioni di dollari
- Utile lordo di 750K dollari
- Perdita operativa di (77,7) milioni di dollari
- Perdita EBITDA rettificata di (12,2) milioni di dollari
- Disponibilità liquide e equivalenti di 5,2 milioni di dollari al 31 dicembre 2023
L'azienda ha registrato un accantonamento per svalutazione non monetario di 15,3 milioni di dollari a causa di fattori macroeconomici. Il CEO Noah Hershcoviz ha evidenziato importanti collaborazioni strategiche, riduzione del debito e posizionamento nel mercato dei dati protetti come sviluppi chiave. HUB Security punta a velocizzare il reporting per il primo semestre del 2024 e prevede una call per discutere i piani futuri.
HUB Security (NASDAQ: HUBC) informó sobre sus resultados financieros del año fiscal 2023, marcando un nuevo capítulo con un nuevo liderazgo y movimientos estratégicos. Los aspectos destacados incluyen:
- Ingresos de 42,6 millones de dólares
- Beneficio bruto de 750K dólares
- Pérdida operativa de (77,7) millones de dólares
- Pérdida EBITDA ajustada de (12,2) millones de dólares
- Liquidez y equivalentes de 5,2 millones de dólares al 31 de diciembre de 2023
La compañía registró un cargo por deterioro no monetario de 15,3 millones de dólares debido a factores macroeconómicos. El CEO Noah Hershcoviz destacó las colaboraciones estratégicas, la reducción de deudas y el posicionamiento en el mercado de datos seguros como desarrollos clave. HUB Security tiene como objetivo acelerar la presentación de informes para la primera mitad de 2024 y planea una llamada para discutir sus futuros planes.
HUB Security (NASDAQ: HUBC)는 2023 회계연도의 재무 결과를 보고하며 새로운 리더십과 전략적 변화를 통해 새로운 장을 열었습니다. 주요 하이라이트는 다음과 같습니다:
- 매출 4260만 달러
- 총 이익 75만 달러
- 운영 손실 (7770만 달러)
- 조정된 EBITDA 손실 (1220만 달러)
- 현금 및 현금성 자산 520만 달러 (2023년 12월 31일 기준)
회사는 거시경제적 요인으로 인해 1530만 달러의 비현금 손상차손을 기록했습니다. CEO 노아 헤르쇼비츠는 전략적 협업, 부채 축소, 보안 데이터 패브릭 시장에서의 포지셔닝을 주요 발전으로 강조했습니다. HUB Security는 2024년 상반기 보고서를 가속화할 계획이며, 향후 계획을 논의하기 위해 컨퍼런스 콜을 계획하고 있습니다.
HUB Security (NASDAQ: HUBC) a annoncé ses résultats financiers pour l'exercice 2023, marquant un nouveau chapitre avec une nouvelle direction et des mouvements stratégiques. Les points clés incluent :
- Chiffre d'affaires de 42,6 millions de dollars
- Profit brut de 750K dollars
- Perte d'exploitation de (77,7) millions de dollars
- Perte EBITDA ajustée de (12,2) millions de dollars
- Trésorerie et équivalents de 5,2 millions de dollars au 31 décembre 2023
L'entreprise a enregistré une provision pour dépréciation non monétaire de 15,3 millions de dollars en raison de facteurs macroéconomiques. Le PDG Noah Hershcoviz a souligné les collaborations stratégiques, la réduction de la dette et le positionnement sur le marché des données sécurisées comme des développements clés. HUB Security vise à accélérer le reporting pour le premier semestre 2024 et prévoit une conférence téléphonique pour discuter des projets futurs.
HUB Security (NASDAQ: HUBC) hat seine finanziellen Ergebnisse für das Geschäftsjahr 2023 veröffentlicht und damit ein neues Kapitel mit neuer Leitung und strategischen Maßnahmen eingeleitet. Die wichtigsten Highlights sind:
- Umsatz von 42,6 Millionen Dollar
- Bruttogewinn von 750.000 Dollar
- Betriebsverlust von (77,7) Millionen Dollar
- Bereinigter EBITDA-Verlust von (12,2) Millionen Dollar
- Bargeld und Äquivalente von 5,2 Millionen Dollar zum 31. Dezember 2023
Das Unternehmen verzeichnete einen nicht zahlungswirksamen Wertberichtigungsaufwand von 15,3 Millionen Dollar aufgrund makroökonomischer Faktoren. CEO Noah Hershcoviz hob strategische Kooperationen, die Schuldenreduzierung und die Positionierung im Markt für gesicherte Daten als entscheidende Entwicklungen hervor. HUB Security plant, die Berichterstattung für das erste Halbjahr 2024 zu beschleunigen und ein Konferenzgespräch über zukünftige Pläne abzuhalten.
- Strategic acquisition of QPoint Technologies balance
- Collaboration with BlackSwan Technologies
- Addition of key executives to the team
- Significant reduction in debt
- Expanded reach to large enterprises and European banks
- Positioning as a dominant force in the secured data fabric market
- Operating loss of $(77.7) million for fiscal 2023
- Adjusted EBITDA loss of $(12.2) million
- Non-cash impairment charge of $15.3 million
- Low cash and cash equivalents of $5.2 million as of December 31, 2023
- Negative operating cash flow of $(16.2) million
HUB Security's fiscal 2023 results paint a concerning picture. Despite
HUB Security's pivot towards the Secured Data Fabric (SDF) sector shows strategic foresight, aligning with growing enterprise data security needs. The acquisition of QPoint Technologies and partnership with BlackSwan Technologies could potentially enhance their product offerings and market reach. However, the company's financial performance raises red flags about execution. The high operating expenses, including significant impairments and transaction costs, suggest operational inefficiencies. To succeed in the competitive cybersecurity market, HUB needs to drastically improve its gross margins and demonstrate clear differentiation in its SDF solutions. The coming months will be important in proving the viability of their new strategy and product focus.
HUB Security's transition phase presents a mixed outlook. The company's retention of a "robust client base" is positive, but the financial results don't reflect strong customer traction yet. The strategic moves in leadership and partnerships indicate a potential for future growth, particularly in the enterprise and European banking sectors. However, the market will likely remain skeptical until HUB can demonstrate significant improvement in financial metrics, especially gross margins and cash flow. The upcoming report for the first half of 2024 will be critical in assessing whether the new strategy is gaining traction. Investors should watch for concrete evidence of revenue growth, margin improvement and reduced cash burn in the coming quarters.
"HUB Security Embarks on New Chapter; with New Leadership Onboard,
TEL AVIV, Israel, Aug. 16, 2024 (GLOBE NEWSWIRE) -- HUB Cyber Security Ltd. (NASDAQ: HUBC), a leading provider of cybersecurity solutions ("HUB Security" or the "Company"), today released its financial results for the fiscal year ended December 31, 2023.
HUB has successfully retained a robust client base and has implemented a clear and ambitious growth strategy to establish itself as a leader in the Secured Data Fabric (SDF) sector. With top-tier talent onboard, the Company believes it is now poised for a dynamic new chapter of growth and innovation.
The Company is committed to expedite the reporting of its results for the first half of the fiscal year ended June 30, 2024. Following this, the Company plans to host a conference call to review present activities and outline its future plans.
Noah Hershcoviz, CEO of HUB, commented, “The conclusion of the 2023 audit signifies a new chapter for HUB. Over the past eight months, we've significantly strengthened our market position through the acquisition of the balance of QPoint Technologies, a strategic collaboration with BlackSwan Technologies, and the addition of key executives to our team. These moves, with a pronounced reduction in debt, have expanded our reach to large enterprises and European banks, stabilized our core operations, and, based on our product and complementary partnerships, positioned HUB as a dominant force in the secured data fabric market. We believe we are now well-equipped to seize emerging opportunities and drive value for our stakeholders."
Fiscal 2023 Key Financial Insights:
- Revenue:
$42.6 million . - Gross Profit: Gross profit for the full year of 2023 was
$750 K. - Operating Expenses: Operating expenses for the full year of 2023 was
$78.5 million , including$15.3 million of impairments,$12.3 million of SPAC transaction costs,$7 million of share-based compensation expenses, and$7.6 million of depreciation and amortization. - Operating Loss: Operating loss for the full year of 2023 was
$(77.7) million . - Non-GAAP Adjusted EBITDA: Adjusted EBITDA loss for the full year of 2023 was
$(12.2) million . - Operating Cash Flow: Operating Cash Flow for the full year of 2023 was
$(16.2) million . - Cash and Cash Equivalents: As of December 31, 2023, the Company had cash and cash equivalents, restricted cash, and deposits in the amount of
$5.2 million .
Impairment
In the year ended December 31, 2023, the Company recorded non-cash charge for the impairment of goodwill and intangible assets in the amount of
A copy of the Company’s annual report on Form 20-F for the year ended December 31, 2023 has been filed with the U.S. Securities and Exchange Commission at https://www.sec.gov/ and posted on the Company’s investor relations website at https://investors.hubsecurity.com/. The Company will deliver a hard copy of its annual report, including its complete audited consolidated financial statements, free of charge, to its shareholders upon request at info@hubsecurity.com.
Non-IFRS Financial Measures
This press release and the accompanying tables contain non-IFRS financial measures. HUB Security believes that these non-IFRS financial measures provide useful information to management and investors regarding certain financial and business trends relating to HUB Security’s financial condition and results of operations. HUB Security’s management uses non-IFRS measures to compare HUB Security’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. Non-IFRS financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with IFRS. It may be different from similarly titled non-IFRS measures used by other companies.
HUB Security defines Adjusted EBITDA as net loss adjusted for income taxes, finance income, finance expenses, depreciation and amortization, impairments, share-based compensation expense, SPAC transaction cost, and other one-time costs. Adjusted EBITDA is a key metric management and HUB Security’s board of directors use to assess its financial performance. Adjusted EBITDA is frequently used by analysts, investors, and other interested parties to evaluate companies in the HUB Security industry. Management believes that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of expenses that do not relate directly to the performance of the underlying business.
Adjusted EBITDA is not an IFRS measure of HUB Security’s financial performance or liquidity. It should not be considered as an alternative to net income or loss as a measure of financial performance, as an alternative to cash flows from operations as a measure of liquidity, or as an alternative to any other performance measure derived in accordance with IFRS. Adjusted EBITDA should not be construed as an inference that HUB Security’s future results will be unaffected by unusual or other items.
Non-IFRS financial measures may differ materially from the non-IFRS financial measures used by other companies. Reconciliation between results on an IFRS and non-IFRS basis is provided in a table at the end of this release. [A reconciliation of the Adjusted EBITDA to the corresponding IFRS measure (net loss) is not available on a forward-looking basis due to the uncertainty regarding the potential variability and significance of the amounts of share-based compensation expense, among others. Accordingly, a reconciliation of Adjusted EBITDA to the corresponding IFRS measure for future periods is not available without unreasonable effort.
For further information or inquiries, please contact:
info@hubsecurity.com
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 Security operates in over 30 countries and provides innovative cybersecurity computing appliances and a wide range of cybersecurity services worldwide.
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 the anticipated benefits of the transaction and the financial condition, results of operations, earnings outlook, and prospects of the combined company. 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 potential 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; (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 Note Regarding Forward-Looking Statements" in HUB Security’s Annual Report on Form 20-F filed on August 16, 2023.
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.
Wire Service Contact:
IBN
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com
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