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Alarum Technologies (ALAR)
NASDAQ:ALAR
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Alarum Technologies
(NASDAQ:ALAR)
Rating:78Outperform
Price Target:
$8.50
▲(4.81%Upside)
Positive Factors
Product Development
Key roadmap launches like Website Unblocker and AI data collector offer medium-term promise and are essential to Alarum's growth strategy.
Strategic Partnerships
Management is actively engaging in late-stage conversations with large global brands, presenting an opportunity for Alarum to become a key element in AI-related data pipelines.
Negative Factors
Demand Challenges
Alarum's recent challenges are perplexing with softer near-term demand and usage volatility due to websites actively restructuring access in response to AI-driven data scraping needs.
Revenue Growth
Sluggish revenue growth was chalked up to certain customers pausing or reducing usage to reassess strategies on the heels of increased website blocking that challenges data collection.
Alarum Technologies (ALAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.31M
Dividend YieldN/A
Average Volume (3M)114.05K
Price to Earnings (P/E)11.8
Beta (1Y)1.73
Revenue Growth4.66%
EPS GrowthN/A
CountryUS
Employees68
SectorTechnology
Sector Strength83
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.01
Shares Outstanding7,015,765
10 Day Avg. Volume137,525
30 Day Avg. Volume114,051
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.17
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.00Price Target Upside35.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Alarum Technologies Business Overview & Revenue Model
Company DescriptionAlarum Technologies (ALAR) is a cybersecurity company that specializes in providing advanced security solutions to protect digital assets and sensitive information. The company operates in the cybersecurity sector, offering products and services that include secure web access, data protection, and threat intelligence solutions. Alarum Technologies aims to deliver high-quality security measures that safeguard organizations against cyber threats and data breaches.
How the Company Makes MoneyAlarum Technologies makes money primarily through the sale of its cybersecurity products and services. The company's revenue streams include subscription fees for its cloud-based security solutions, licensing fees for its software products, and consulting fees for offering customized security solutions to businesses. Additionally, Alarum may engage in strategic partnerships with other technology firms to enhance its product offerings and expand its market reach. These diverse revenue channels enable the company to generate consistent income while addressing the growing demand for robust cybersecurity measures.
Alarum Technologies Earnings Call Summary
Earnings Call Date:May 29, 2025
(Q1-2025)
| % Change Since: 0.50%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Neutral
While Alarum Technologies is experiencing strong momentum in AI-related data collection and has a solid financial position, there are notable challenges including decreased year-over-year revenues and margins, increased operating expenses, and a lower net profit. The company is making strategic investments in infrastructure to capitalize on AI trends, which reflects a forward-looking strategy but impacts short-term profitability.Q1-2025 Updates
Positive Updates
Revenue and Profit Achievement
First quarter 2025 revenue reached $7.1 million, with a net profit of $0.4 million and adjusted EBITDA exceeding guidance at $1.3 million.
Strategic Investments in AI Data Collection
Alarum is increasing investments into its data collection infrastructure, targeting the AI market demand, and expanding its product suite for AI applications.
Major Collaborations and Customer Growth
Several large-scale platforms, including a major online marketplace in Asia and a global consumer electronics brand, have expanded their collaboration with Alarum.
Strong Financial Position
Shareholders' equity increased to $27.6 million, and cash balance rose nearly 60% to $24 million as of March 31, 2025.
Positive Market Outlook for Q2 2025
Guidance for Q2 2025 projects revenue of $7.9 million, reflecting a continued positive outlook despite market volatility.
Negative Updates
Decline in Year-Over-Year Revenues
Q1 2025 revenues decreased to $7.1 million from $8.4 million in Q1 2024, with a drop in data collection revenue from $8.1 million to $7 million.
Decreased Gross Margin
Non-IFRS gross margin dropped to 69.4% in Q1 2025 from 80.4% in Q1 2024, mainly due to increased investments in infrastructure.
Lower Net Profit and EBITDA
Non-IFRS net profit decreased to $1.1 million in Q1 2025 from $2.8 million in Q1 2024, with adjusted EBITDA dropping from $3.2 million to $1.3 million.
Increased Operating Expenses
Operating expenses rose to $4.5 million in Q1 2025 from $4 million in Q1 2024, driven by higher employee salary costs and team expansion.
Company Guidance
During the first quarter of 2025, Alarum Technologies reported a revenue of $7.1 million, aligning with guidance, with $7 million attributed to data collection. The company achieved a net profit of $0.4 million and an adjusted EBITDA of $1.3 million, surpassing the high end of guidance. The non-IFRS gross margin was 69.4%, a decrease from 80.4% in the same period last year, primarily due to strategic reinvestments in scaling operations. Operating expenses rose to $4.5 million, influenced by higher employee salary costs. The financial income was $200,000, compared to an $800,000 expense the previous year, due to a decrease in the fair value of warrants. The non-IFRS net profit was $1.1 million, down from $2.8 million the prior year, with adjusted EBITDA at $1.3 million, compared to $3.2 million in Q1 2024. The company maintained a strong financial position with shareholders' equity at $27.6 million and cash balances at $24 million as of March 31, 2025. For the second quarter, Alarum anticipates revenue between $7.9 million (±3%) with adjusted EBITDA projected from $0.5 million to $0.8 million.Alarum Technologies Financial Statement Overview
Summary
Alarum Technologies has shown strong financial performance with significant improvements in profitability, revenue growth, and cash flow. The turnaround in net income, robust gross profit margin, and solid balance sheet with low leverage highlight the company's financial health.Income Statement
Alarum Technologies has demonstrated strong growth in revenue, increasing by 20% from the previous year. The company turned around its net income from a loss to a profit of $5.78 million, resulting in a net profit margin of 18.2%. The gross profit margin is robust at 75.1%, and both EBIT and EBITDA margins have significantly improved, indicating enhanced operational efficiency.85
Very Positive
Balance Sheet
The company's balance sheet shows a solid equity position with a high equity ratio of 75.7%. The debt-to-equity ratio is low at 0.06, reflecting minimal leverage. Return on equity stands at 21.9%, highlighting effective utilization of equity to generate profits. However, the relatively low total assets compared to industry peers might limit scalability.78
Positive
Cash Flow
Alarum Technologies has shown remarkable improvement in cash flow, with free cash flow increasing significantly. The operating cash flow to net income ratio of 1.54 indicates strong cash generation relative to earnings. The free cash flow to net income ratio is robust at 1.52, showcasing excellent cash conversion capabilities. Despite past negative cash flows, the company has managed a positive trajectory in recent periods.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 31.56M | 31.82M | 26.52M | 18.78M | 10.28M | 4.89M | Gross Profit |
| 23.90M | 23.91M | 18.81M | 10.13M | 5.14M | 2.39M | EBIT |
| 8.08M | 6.72M | -5.50M | -13.42M | -15.01M | -11.33M | EBITDA |
| 8.09M | 8.31M | -1.64M | -10.53M | -9.70M | -6.42M | Net Income Common Stockholders |
| 7.01M | 5.78M | -5.53M | -13.15M | -13.13M | -7.84M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 21.00K | 15.08M | 10.87M | 3.29M | 9.71M | 11.02M | Total Assets |
| 0.00 | 34.81M | 20.07M | 22.37M | 30.65M | 22.97M | Total Debt |
| 0.00 | 1.59M | 1.99M | 3.05M | 562.00K | 663.00K | Net Debt |
| 21.00K | -13.49M | -8.89M | -244.00K | -3.27M | -10.35M | Total Liabilities |
| 0.00 | 8.46M | 6.88M | 9.06M | 6.47M | 6.76M | Stockholders Equity |
| 1.84M | 26.35M | 13.18M | 13.31M | 24.19M | 16.22M |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | 8.79M | 4.67M | -8.11M | -9.49M | -6.75M | Operating Cash Flow |
| 0.00 | 8.89M | 4.73M | -8.05M | -9.21M | -6.61M | Investing Cash Flow |
| 0.00 | -9.34M | 695.00K | 5.04M | -9.80M | -1.19M | Financing Cash Flow |
| 0.00 | 4.69M | 2.21M | 2.60M | 11.74M | 14.71M |
Alarum Technologies Technical Analysis
Positive
8.11
Price Trends
7.14
Positive
7.82
Positive
10.34
Negative
Market Momentum
0.13
Negative
57.72
Neutral
67.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALAR, the sentiment is Positive. The current price of 8.11 is above the 20-day moving average (MA) of 7.67, above the 50-day MA of 7.14, and below the 200-day MA of 10.34, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 57.72 is Neutral, neither overbought nor oversold. The STOCH value of 67.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALAR.
Alarum Technologies Risk Analysis
Alarum Technologies disclosed 57 risk factors in its most recent earnings report. Alarum Technologies reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
Our securities are traded on more than one market or exchange, and this may result in price variations. Q4, 2023
2.
The increasing use of social media platforms and new technologies present risks and challenges for our business and reputation. Q4, 2023
3.
Unsuccessful management of environmental, social and governance matters could adversely affect our reputation and we may experience difficulties meeting the expectations of our stakeholders. Q4, 2023
Alarum Technologies Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $56.31M | 11.76 | 21.25% | ― | 4.66% | ― | |
64 Neutral | $70.01M | ― | -18.19% | ― | 20.38% | 71.64% | |
63 Neutral | $59.01M | ― | -10.44% | ― | 16.93% | 85.85% | |
62 Neutral | $11.80B | 10.37 | -7.29% | 2.91% | 7.39% | -7.96% | |
51 Neutral | $167.08M | ― | -121.54% | ― | 17.97% | 21.12% | |
42 Neutral | $67.35M | ― | -168.24% | ― | 230.96% | 91.63% |
* Technology Sector Average
Performance Comparison
ALAR
Alarum Technologies
8.11
-27.98
-77.53%
JG
Aurora Mobile
9.83
6.87
232.09%
REKR
Rekor Systems
1.42
-0.16
-10.13%
AUID
Ipsidy
5.23
-2.56
-32.86%
ZENV
Zenvia
1.34
-1.59
-54.27%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.