Alarum Technologies Ltd Sponsored Adr ((ALAR)) has held its Q4 earnings call. Read on for the main highlights of the call.
Alarum Technologies Ltd. recently held its earnings call, revealing a strong financial performance and strategic execution that led to record revenues. The company has shown significant growth by focusing on data collection, which has bolstered its financial position. However, challenges such as increased operating costs, a decline in gross margin, and anticipated slower revenue growth in the near term present potential hurdles. The company’s engagement in AI projects indicates promising opportunities, though the evolving market landscape introduces both opportunities and uncertainties.
Record Annual Revenue and Growth
Alarum Technologies reported a record annual revenue of $31.8 million for 2024, marking a 20% increase from the previous year. The data collection segment was a major contributor, generating $30.9 million, which represents a 45.2% increase from 2023 and accounts for 97% of the total revenues.
Shift to Data Collection
The company has fully executed its strategic vision to concentrate on data collection, with this segment contributing 97% of the annual revenue. This strategic shift underscores Alarum’s commitment to capitalizing on data-driven opportunities.
Strong Financial Position
Alarum’s financial health has improved significantly, with adjusted EBITDA rising to $9.4 million in 2024 from $5.2 million in 2023. Shareholders’ equity doubled to $26.4 million, and the cash position increased to $25 million, reflecting a robust financial foundation.
Initial AI Model Training Projects
In the last quarter of 2024 and the first quarter of 2025, Alarum initiated AI model training projects with new clients, including one of the world’s largest corporations. This move highlights the company’s expansion into AI-driven solutions.
Decline in Non-IFRS Gross Margin
The non-IFRS gross margin for Q4 2024 was 74.3%, a decline from 77.2% in Q4 2023. This decrease is attributed to strategic enhancements in the IT network, which are expected to support future growth.
Increase in Operating Expenses
Operating expenses rose to $5 million in Q4 2024 from $3.6 million in the same quarter of the previous year. This increase was primarily due to higher employee salary costs, reflecting investment in talent to support strategic initiatives.
Lower Net Profit in Q4 2024
The IFRS net profit for Q4 2024 was $400,000, down from $1.7 million in Q4 2023. The decline was mainly due to increased operating expenses, which impacted the bottom line.
Revenue Growth Challenges
Alarum anticipates slower revenue growth in Q1 2025, with expected revenues of $7.3 million, plus or minus 3%. This forecast reflects market adjustments and evolving industry conditions that may impact short-term performance.
Forward-Looking Guidance
Looking ahead, Alarum Technologies remains optimistic about long-term growth prospects, driven by increased demand from AI-driven companies for large-scale data extraction solutions. The company expects first-quarter 2025 revenue to be around $7.3 million, with adjusted EBITDA projected between $0.8 million and $1.2 million. Despite short-term volatility, Alarum’s strong cash position supports ongoing strategic investments.
In summary, Alarum Technologies’ earnings call highlighted a period of strong financial growth and strategic execution, with record revenues and a solid financial position. While challenges such as increased operating costs and slower anticipated revenue growth present hurdles, the company’s focus on data collection and AI projects offers promising opportunities. Alarum’s robust cash position and strategic investments position it well for future growth.