Allot Ltd. Reports Positive Q3 2024 Financials

Allot Communications ( (ALLT) ) has released its Q3 earnings. Here is a breakdown of the information Allot Communications presented to its investors.

Allot Ltd. is a global leader in network intelligence and security solutions, offering services that enhance the value for service providers and enterprises worldwide. The company specializes in network analytics, traffic control, and network-based security services, with a significant presence across over 500 service providers and 1,000 enterprises globally.

Allot’s third-quarter 2024 financial results mark a noteworthy recovery, as the company reported a non-GAAP operating profit for the first time in three years. The quarter saw a revenue increase to $23.2 million, a sequential growth of 5% and a year-over-year rise of 3%. This growth reflects the company’s strategic focus on its Security as a Service (SECaaS) offerings, which posted a vigorous 69% year-over-year increase.

Key financial highlights include a non-GAAP gross margin of 71.7% and a non-GAAP operating profit of $1.1 million, compared to a substantial loss in the same period last year. The company also achieved a positive operating cash flow of $1.9 million, with net cash increasing by $2 million since June 2024. Allot’s SECaaS revenues continue to be a significant growth driver, aligning with expectations and supporting the company’s revenue recovery.

Looking ahead, Allot’s management remains optimistic about maintaining a breakeven position in non-GAAP operating profit for the fourth quarter and anticipates further positive cash flows. The company expects to achieve double-digit growth in SECaaS revenue for the full year, reinforcing its strategy to position itself as a security-first company through integrated network intelligence and security offerings.