Alarum Technologies (ALAR) AI Stock Analysis

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Alarum Technologies

(NASDAQ:ALAR)

Rating:74Outperform

Price Target:

$14.50

▲(12.84%Upside)

Alarum Technologies has shown robust financial performance and a strong market position, driven by strategic investments in AI. However, challenges such as decreased revenues and increased expenses, alongside technical indicators suggesting overbought conditions, temper the overall outlook.

Positive Factors

Engagement with Global Brands

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.

Guidance Revision

Upward guidance revision indicates building momentum.

Large Scale Data Collection

There is healthy opportunity in large scale data collection with growing AI-driven demand and solid unit economics in the NetNut business.

Negative Factors

Growth Trajectory

The growth trajectory has deteriorated rapidly with a material ~40pts NRR compression over 12 months.

Near-Term 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

$97.87M

Dividend YieldN/A

Average Volume (3M)219.50K

Price to Earnings (P/E)18.6

Beta (1Y)1.78

Revenue Growth4.66%

EPS GrowthN/A

CountryUS

Employees68

SectorTechnology

Sector Strength86

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.01

Shares Outstanding7,018,690

10 Day Avg. Volume197,682

30 Day Avg. Volume219,499

Financial Highlights & Ratios

PEG Ratio0.41

Price to Book (P/B)5.70

Price to Sales (P/S)0.00

P/FCF Ratio-9.35

Enterprise Value/Market Cap0.77

Enterprise Value/Revenue0.64

Enterprise Value/Gross Profit3.16

Enterprise Value/Ebitda3.55

Forecast

1Y Price Target

$15.00

Price Target Upside16.73% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Alarum Technologies Business Overview & Revenue Model

Company DescriptionAlarum Technologies (ALAR) is a technology-driven company specializing in cybersecurity solutions. It operates within the cybersecurity sector, offering a range of advanced security products and services designed to protect digital assets from various online threats. The company's offerings include comprehensive cybersecurity platforms, network security solutions, and threat intelligence services aimed at safeguarding businesses and individuals against cyberattacks.

How the Company Makes MoneyAlarum Technologies makes money primarily through the sale of its cybersecurity products and services. The company generates revenue by offering subscription-based access to its cybersecurity platforms and solutions, which provide ongoing protection and updates. Additionally, Alarum Technologies may have partnerships with other technology providers to integrate its security solutions into broader IT environments, further enhancing its revenue streams. The company's revenue model is also supported by offering consulting and managed security services, helping clients to implement and maintain robust cybersecurity measures.

Alarum Technologies Earnings Call Summary

Earnings Call Date:May 29, 2025

(Q1-2025)

% Change Since: 59.23%|

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 demonstrated strong financial performance with notable revenue growth and a turnaround to profitability. The company's strong gross and net profit margins, along with improved operational efficiency, support a positive outlook. The balance sheet reflects a healthy capital structure with minimal leverage, and cash flow metrics indicate robust cash conversion capabilities.

Income Statement

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Very Positive

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.

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
EBITDA	8.09M	8.29M	-1.64M	-10.53M	-9.70M	-6.42M
Net Income	7.01M	5.78M	-5.53M	-13.15M	-13.13M	-7.84M
Balance Sheet
Total Assets	33.27M	34.81M	20.07M	22.37M	30.65M	22.97M
Cash, Cash Equivalents and Short-Term Investments	24.01M	15.08M	10.87M	3.29M	9.71M	11.02M
Total Debt	1.63M	1.59M	1.99M	3.05M	562.00K	663.00K
Total Liabilities	8.30M	8.46M	6.88M	9.06M	6.47M	6.76M
Stockholders Equity	24.97M	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

Technical Analysis Sentiment

Positive

Last Price12.85

Price Trends

50DMA

8.67

Positive

100DMA

8.08

Positive

200DMA

10.13

Positive

Market Momentum

MACD

1.41

Negative

RSI

67.54

Neutral

STOCH

72.43

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 12.85 is above the 20-day moving average (MA) of 10.58, above the 50-day MA of 8.67, and above the 200-day MA of 10.13, indicating a bullish trend. The MACD of 1.41 indicates Negative momentum. The RSI at 67.54 is Neutral, neither overbought nor oversold. The STOCH value of 72.43 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 0 New Risks

Alarum Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ALAR	74 Outperform	$97.87M	18.63	21.25%	―	4.66%	―
JG	65 Neutral	$69.04M	―	-10.44%	―	16.93%	85.85%
Sector *	63 Neutral	$33.22B	5.99	-11.76%	1.91%	5.54%	-19.87%
ZENV	60 Neutral	$78.66M	―	-18.19%	―	10.01%	-85.74%
REKR	55 Neutral	$134.61M	―	-121.54%	―	17.97%	21.12%
AUID	42 Neutral	$76.09M	―	-168.24%	―	230.96%	91.63%

* Technology Sector Average

Performance Comparison

ALAR

Alarum Technologies

12.85

-27.14

-67.87%

Aurora Mobile

11.50

8.83

330.71%

REKR

Rekor Systems

1.14

-0.45

-28.30%

AUID

Ipsidy

5.66

-4.34

-43.40%

ZENV

Zenvia

1.50

-1.07

-41.63%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 24, 2025