#Israel #financial results #Hod Hasharon #Allot Ltd #Security as a Service

Allot Ltd Reports Financial Results for Q4 2024

Allot Ltd. (NASDAQ: ALLT) has unveiled its unaudited financial outcomes for the fourth quarter and the entire year of 2024, marking a notable shift towards robust revenue growth and an improvement in profitability. Based in Hod Hasharon, Israel, Allot is recognized as a leading provider of network intelligence and security solutions globally.

Financial Highlights

In the fourth quarter, the company achieved revenues of $24.9 million, indicating a 2% year-over-year increase and a 7% increase from the previous quarter. This return to revenue growth coincides with a notable performance in their Security as a Service (SECaaS) division, which saw revenues surge by 49% to reach $4.8 million. The annual recurring revenue (ARR) from SECaaS grew to $18.2 million as of December 2024, a 43% increase year-over-year.

The gross margin showed remarkable improvement as well, with a non-GAAP margin of 69.7%, up from 51.7% in the same quarter last year. Furthermore, for the first time in several periods, Allot reported a non-GAAP operating profit of $1.8 million, transitioning from last year's operating losses.

CEO's Insights

Eyal Harari, the CEO of Allot, expressed satisfaction with the financial results stating, "We are very pleased to report solid fourth-quarter and full year 2024 results, demonstrating that Allot is at a key inflection point in its turnaround process." Harari emphasized the company's renewed focus on profitability and positive cash flow generation, directly attributing the growth to the security-first strategy.

An important recent milestone includes securing a major agreement with Verizon Business, allowing their extensive mobile customer base access to Allot's cybersecurity solutions. This partnership, along with collaborations with other significant players like Vodafone, O2, and MEO, underscores the positive momentum Allot is experiencing.

Yearly Overview

For the full year of 2024, Allot reported total revenues of $92.2 million, which is a slight decrease from $93.2 million in 2023. Nonetheless, the gross profit on a GAAP basis increased by 20.9% to $63.7 million, showcasing a successful operational scale despite the minor decline in overall yearly revenue. Notably, the net loss for the year was reduced to $5.9 million, a substantial improvement from $62.8 million in 2023, marking progress in the company’s financial health.

Looking Ahead

Allot's management aims to continue this upward trajectory into 2025, focusing on achieving double-digit SECaaS revenue growth and further profitability. The company remains committed to expanding its market presence and enhancing its financial performance through its innovative solutions.

As the landscape for cybersecurity and network management evolves, Allot's strategic initiatives and partnerships position the company well for continued success in an increasingly competitive market. The upcoming conference call on February 25, 2025, will further discuss these outcomes and projected strategies for the future.

Conclusion

Allot's fourth quarter 2024 financial results reflect not just a return to growth but also a clear evolution of the company’s operational strategy towards more sustainable profitability through its SECaaS offerings. As they continue to adapt and thrive, stakeholders and investors will be keen to watch Allot's next steps in this dynamic subject of cybersecurity.