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Alarum Technologies Ltd Sponsored Adr (ALAR)
:ALAR
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Alarum Technologies
(NASDAQ:ALAR)
Rating:75Outperform
Price Target:
$13.00
▲(9.06%Upside)
Positive Factors
Guidance and Valuation
Upward guidance revision indicates building momentum.
Market Opportunities
Alarum's appeal to large global brands is increasing, suggesting it could become a key element of the data pipeline powering new AI-related projects.
Negative Factors
Demand and Revenue
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.
Growth Trajectory
The growth trajectory has deteriorated rapidly with a material ~40pts NRR compression over 12 months.
Alarum Technologies (ALAR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$86.04M
Dividend YieldN/A
Average Volume (3M)203.78K
Price to Earnings (P/E)17.3
Beta (1Y)1.83
Revenue Growth4.66%
EPS GrowthN/A
CountryUS
Employees68
SectorTechnology
Sector Strength94
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.01
Shares Outstanding7,033,106
10 Day Avg. Volume108,417
30 Day Avg. Volume203,784
Financial Highlights & Ratios
PEG Ratio-1.50
Price to Book (P/B)3.08
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue0.60
Enterprise Value/Gross Profit3.08
Enterprise Value/Ebitda2.53
Forecast
1Y Price Target
$15.00Price Target Upside25.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Alarum Technologies Business Overview & Revenue Model
Company DescriptionAlarum Technologies Ltd. provides cybersecurity and privacy solutions to consumers and enterprises in Israel, the United States, Hong Kong, the Asia Pacific, and internationally. Its cybersecurity solutions comprise iShield, a cybersecurity cloud software that protects users from online threats, including phishing, malware, ransomware and others; AdBlocker, an iOS application for an ad-free internet experience; ZoneZero SDP, a solution based on software defined perimeter and zero trust network access concepts that grant access to applications on a need-to-know basis only; ZoneZero MFA, a solution designed to add centralized multi-factor authentication capabilities for various types of internal applications; and SDE, which is designed to unify various data exchange scenarios of an organization. The company also provides Proxy solutions consisting of static and dynamic residential proxy network cloud services, data center proxy network cloud services, and data collection API cloud services; Proxy-in-a-Box, an on-premise solution of private proxy access network for customers who wish to deploy and maintain their own proxy network; and Premium dedicated static residential proxies, a solution that creates a dedicated static IP for each user. It offers its products through resellers, distributors, and internet service providers. The company serves finance, healthcare, and retail sectors; and government agencies, commercial and online companies, and educational institutions. The company was formerly known as Safe-T Group Ltd. and changed its name to Alarum Technologies Ltd. in January 2023. Alarum Technologies Ltd. was founded in 2013 and is headquartered in Tel Aviv-Yafo, Israel.
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: 47.71%|
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 shows strong financial recovery with revenue growth, improved profitability, and robust cash flow. Minimal leverage and strong equity position enhance financial stability, although scalability is limited by relatively low assets.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 31.82M | 26.52M | 18.78M | 10.28M | 4.89M |
| Gross Profit | 23.91M | 19.11M | 10.13M | 5.14M | 2.39M |
| EBITDA | 8.31M | -2.90M | -10.53M | -9.70M | -6.58M |
| Net Income | 5.78M | -5.53M | -13.15M | -13.13M | -7.84M |
Balance Sheet | |||||
| Total Assets | 34.81M | 20.07M | 22.37M | 30.65M | 22.97M |
| Cash, Cash Equivalents and Short-Term Investments | 15.08M | 10.87M | 3.29M | 9.71M | 11.02M |
| Total Debt | 1.59M | 1.99M | 3.05M | 562.00K | 663.00K |
| Total Liabilities | 8.46M | 6.88M | 9.06M | 6.47M | 6.76M |
| Stockholders Equity | 26.35M | 13.18M | 13.31M | 24.19M | 16.22M |
Cash Flow | |||||
| Free Cash Flow | 8.79M | 4.67M | -8.11M | -9.49M | -6.75M |
| Operating Cash Flow | 8.89M | 4.73M | -8.05M | -9.21M | -6.61M |
| Investing Cash Flow | -9.34M | 592.00K | 5.04M | -9.80M | -1.19M |
| Financing Cash Flow | 4.69M | 2.21M | 2.60M | 11.64M | 14.71M |
Alarum Technologies Technical Analysis
Neutral
11.92
Price Trends
10.29
Positive
8.59
Positive
10.23
Positive
Market Momentum
0.45
Positive
50.02
Neutral
16.97
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALAR, the sentiment is Neutral. The current price of 11.92 is below the 20-day moving average (MA) of 12.87, above the 50-day MA of 10.29, and above the 200-day MA of 10.23, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 50.02 is Neutral, neither overbought nor oversold. The STOCH value of 16.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $86.04M | 17.28 | 21.25% | ― | 4.66% | ― | |
63 Neutral | $34.60B | 5.43 | -11.64% | 2.14% | 5.30% | -18.55% | |
| ― | $86.21M | ― | -39.67% | ― | ― | ― | |
62 Neutral | $78.13M | ― | -10.57% | ― | 9.04% | 37.96% | |
62 Neutral | $70.06M | ― | -10.44% | ― | 16.93% | 85.85% | |
47 Neutral | $158.22M | ― | -121.54% | ― | 17.97% | 21.12% | |
42 Neutral | $53.64M | ― | -168.24% | ― | 230.96% | 91.63% |
* Technology Sector Average
Performance Comparison
ALAR
Alarum Technologies
11.92
-15.64
-56.75%
VHC
Virnetx Holding
20.34
15.17
293.42%
JG
Aurora Mobile
11.67
9.17
366.80%
REKR
Rekor Systems
1.34
-0.39
-22.54%
AUID
Ipsidy
3.99
-5.97
-59.94%
ZENV
Zenvia
1.49
-0.49
-24.75%
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.