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Allot Communications Ltd (ALLT)
NASDAQ:ALLT
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Allot
(NASDAQ:ALLT)
55Neutral
Allot (ALLT) vs. S&P 500 (SPY)
Market Cap
$224.88M
Dividend YieldN/A
Average Volume (3M)703.63K
Price to Earnings (P/E)―
Beta (1Y)0.91
Revenue Growth-1.03%
EPS Growth90.81%
CountryUS
Employees523
SectorTechnology
Sector Strength44
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.15
Shares Outstanding38,441,772
10 Day Avg. Volume604,750
30 Day Avg. Volume703,631
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.60
Price to Cash Flow (P/CF)N/A
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
$13.00Price Target Upside127.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Allot Business Overview & Revenue Model
Company DescriptionAllot Ltd. provides network intelligence and security solutions to protect and personalize the digital experience in Europe, Asia, Oceania, the Middle East, Africa, and the Americas. The company offers Allot Secure Management platform that includes Allot NetworkSecure, Allot HomeSecure, Allot DNSecure, EndPoint Secure, Allot BusinessSecure, Allot IoTSecure, and Allot Secure Cloud. It also provides Allot DDoS Secure/5G Protect, a solution that offers attack detection and mitigation services; integrated network intelligence solutions; and centralized management solutions, such as Allot NetXplorer for providing a central access point for network-wide monitoring, reporting, analytics, troubleshooting, accounting, and quality of service policy provisioning. The company markets its products through direct sales, distributors, resellers, original equipment manufacturers, and system integrators to carriers, mobile and fixed service providers, cable operators, satellite service providers, private networks, data centers, financial and educational institutions, and governments. Allot Ltd. was formerly known as Allot Communications Ltd. and changed its name to Allot Ltd. in October 2018. The company was incorporated in 1996 and is based in Hod Hasharon, Israel.
How the Company Makes MoneyAllot makes money primarily through the sale of its network intelligence and security solutions to telecommunications service providers and enterprises. The company's revenue model includes the sale of hardware, software licenses, and recurring revenue from maintenance and support contracts. Allot also generates revenue through its security-as-a-service offerings, which provide ongoing network protection and management. Key revenue streams include direct sales to telecom operators, ISPs, and large enterprises, as well as strategic partnerships and collaborations with technology vendors and service providers to integrate Allot's solutions into broader service offerings.
Allot Financial Statement Overview
Summary
Allot is facing challenges with declining revenues and persistent losses. Despite some improvements in cash flow and gross profit margins, the company struggles with operational efficiency and leverage. Continued focus on cost management and revenue growth is essential for financial stability.Income Statement
Allot's revenue decreased by 1.03% from 2023 to 2024, and the company has been facing a declining trend since 2021. Gross Profit Margin improved to 69.1% in 2024 from 56.56% in 2023, yet the company remains unprofitable with a negative Net Profit Margin of -6.37% in 2024. The EBIT and EBITDA margins improved but are still negative, indicating operational challenges.45
Neutral
Balance Sheet
The debt-to-equity ratio increased slightly to 0.93 in 2024 from 0.84 in 2023, showing a manageable but rising leverage level. The equity ratio decreased to 35.66% in 2024, indicating lower asset financing through equity. Return on Equity remained negative due to consistent net losses, which is concerning for shareholder returns.55
Neutral
Cash Flow
Allot's cash flow improved in 2024, with a positive Operating Cash Flow of $4.83M compared to negative in 2023. Free Cash Flow also turned positive at $2.71M in 2024, reflecting better cash management. However, the Free Cash Flow to Net Income ratio remains weak due to continuing net losses.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 92.19M | 93.15M | 122.74M | 145.60M | 135.92M | Gross Profit |
| 63.69M | 52.69M | 82.91M | 101.05M | 95.84M | EBIT |
| -6.01M | -64.94M | -32.27M | -13.53M | -9.03M | EBITDA |
| 209.00K | -55.13M | -22.75M | -7.95M | -2.86M | Net Income Common Stockholders |
| -5.87M | -62.80M | -32.03M | -15.04M | -9.35M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 57.86M | 53.05M | 85.35M | 83.97M | 98.00M | Total Assets |
| 139.64M | 138.16M | 212.95M | 203.41M | 201.60M | Total Debt |
| 46.34M | 41.93M | 44.70M | 8.25M | 4.65M | Net Debt |
| 30.20M | 27.74M | 32.40M | -3.46M | -18.95M | Total Liabilities |
| 89.84M | 88.40M | 110.98M | 77.41M | 71.45M | Stockholders Equity |
| 49.80M | 49.76M | 101.97M | 126.01M | 130.15M |
| Cash Flow | Free Cash Flow | |||
| 2.71M | -32.23M | -38.21M | -16.01M | -19.81M | Operating Cash Flow |
| 4.83M | -29.74M | -32.56M | -8.37M | -12.22M | Investing Cash Flow |
| -2.88M | 31.63M | -6.51M | -6.32M | 17.06M | Financing Cash Flow |
| 0.00 | 0.00 | 39.66M | 2.81M | 1.83M |
Allot Technical Analysis
Negative
5.71
Price Trends
6.99
Negative
6.02
Negative
4.48
Positive
Market Momentum
-0.15
Negative
42.36
Neutral
28.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLT, the sentiment is Negative. The current price of 5.71 is below the 20-day moving average (MA) of 5.82, below the 50-day MA of 6.99, and above the 200-day MA of 4.48, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 42.36 is Neutral, neither overbought nor oversold. The STOCH value of 28.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALLT.
Allot Risk Analysis
Allot disclosed 44 risk factors in its most recent earnings report. Allot reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allot Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $15.21B | 26.25 | 19.51% | ― | 3.02% | 31.36% | |
74 Outperform | $242.12B | 26.67 | 20.02% | 2.63% | -5.34% | -30.57% | |
60 Neutral | $12.03B | 41.98 | 6.21% | 2.44% | -8.82% | -10.01% | |
57 Neutral | $20.97B | 10.32 | -14.01% | 2.49% | 4.46% | -23.38% | |
57 Neutral | $1.52B | ― | -24.41% | ― | -1.55% | -250.10% | |
55 Neutral | $224.88M | ― | -11.79% | ― | -1.03% | 90.81% | |
44 Neutral | $1.85B | ― | -152.77% | ― | -24.49% | -250.61% |
* Technology Sector Average
Performance Comparison
ALLT
Allot
5.71
3.51
159.55%
CSCO
Cisco Systems
61.71
13.86
28.97%
EXTR
Extreme Networks
13.23
2.04
18.23%
FFIV
F5 Networks
266.27
76.74
40.49%
JNPR
Juniper Networks
36.19
0.16
0.44%
NTCT
Netscout Systems
21.01
0.04
0.19%
Allot Earnings Call Summary
Earnings Call Date: Feb 25, 2025 | % Change Since: -13.62% | Next Earnings Date: May 20, 2025
Earnings Call Sentiment Positive
Allot Ltd. has demonstrated a strong turnaround with notable revenue growth in its CCaaS segment, improved gross margins, and a return to profitability. Significant contracts with major telecom operators, such as Verizon, highlight strategic advancements. Despite a decline in product revenue and slightly lower overall revenue compared to the previous year, the company's positive trends in cash flow and profitability indicate a favorable outlook.Highlights
Return to Revenue Growth
Allot Ltd. reported an increase in fourth quarter and full year 2024 revenues year over year, indicating a return to revenue growth.
Significant Growth in CCaaS
The CCaaS (Cybersecurity as a Service) revenues reached $16.5 million for the full year, up 56% over the previous year, with ARR at $18.2 million, up 43% year over year.
Improved Gross Margins
Gross margins increased significantly to around 70%, recovering from 57% in 2023.
Return to Profitability
Reported a non-GAAP net income of $5.6 million for the year versus a loss of $53 million last year.
Positive Cash Flow
Generated a positive cash flow of $4.8 million in 2024, marking the first time in several years.
Notable Contracts and Partnerships
Secured significant contracts with major telecom operators, including Verizon and Vodafone UK.
Lowlights
Decline in Product Revenue
Product revenue was down 55% year over year, reflecting fluctuations due to specific deal timing and seasonality.
Revenue Slightly Below Previous Year
Full year 2024 revenue was $92.2 million, just 1% below those of 2023.
Company Guidance
During the call, Allot Ltd. showcased significant financial improvements and growth metrics, marking a pivotal inflection point in its turnaround strategy. The company reported fourth quarter revenues of $24.9 million, a 2% year-over-year increase, while full-year 2024 revenues were $92.2 million, just 1% below the previous year. The company's CCaaS (Cybersecurity as a Service) revenue notably grew by 49% year-over-year, contributing $4.8 million in the quarter and comprising 19% of total revenue. The CCaaS annual recurring revenue (ARR) increased by 43% year-over-year to $18.2 million. Allot's gross margins rebounded to 69.7% in the quarter, a significant recovery from 51.7% the previous year, and achieved a full-year non-GAAP net income of $5.6 million, reversing a $53 million loss in 2023. Additionally, Allot reported a positive operating cash flow of $4.8 million for 2024, enhancing its year-end cash position to $59 million. The company's strategic focus on its security-first approach, underscored by new partnerships with major telecom operators like Verizon, positions it for continued growth and profitability in 2025 and beyond.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.