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Alarum Technologies (ALAR)
NASDAQ:ALAR
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Alarum Technologies
(NASDAQ:ALAR)
76Outperform
Positive Factors
Customer Expansion
Alarum secured a key win with an existing global Fortune 200 customer expanded to adopt Website Unblocker.
Growth Strategy
Key roadmap launches like Website Unblocker and AI data collector offer medium-term promise and are essential to Alarum's growth strategy.
Market Opportunities
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.
Industry Challenges
Declining revenue growth was chalked up to 'industry challenges' that resulted in lower consumption and more churn this quarter.
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. S&P 500 (SPY)
Market Cap
$58.00M
Dividend YieldN/A
Average Volume (3M)111.14K
Price to Earnings (P/E)9.6
Beta (1Y)1.91
Revenue Growth20.00%
EPS GrowthN/A
CountryUS
Employees68
SectorTechnology
Sector Strength44
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.85
Shares Outstanding6,952,588
10 Day Avg. Volume127,162
30 Day Avg. Volume111,138
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)6.71
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
$12.00Price Target Upside65.06% 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'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 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
Negative
7.27
Price Trends
7.33
Negative
9.28
Negative
13.70
Negative
Market Momentum
<0.01
Negative
52.35
Neutral
84.23
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALAR, the sentiment is Negative. The current price of 7.27 is above the 20-day moving average (MA) of 6.69, below the 50-day MA of 7.33, and below the 200-day MA of 13.70, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.35 is Neutral, neither overbought nor oversold. The STOCH value of 84.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $58.00M | 9.62 | 29.24% | ― | 20.00% | ― | |
64 Neutral | $65.70M | ― | -6.45% | ― | 20.38% | 71.64% | |
58 Neutral | $46.82M | ― | -9.96% | ― | 7.31% | 88.98% | |
58 Neutral | $9.82B | 10.00 | -6.63% | 3.09% | 7.49% | -11.58% | |
51 Neutral | $93.22M | ― | -115.55% | ― | 365.86% | 92.57% | |
47 Neutral | $86.62M | ― | -181.93% | ― | 31.76% | 2.90% |
* Technology Sector Average
Performance Comparison
ALAR
Alarum Technologies
7.27
-19.05
-72.38%
VHC
Virnetx Holding
8.46
2.90
52.16%
JG
Aurora Mobile
7.80
4.66
148.41%
REKR
Rekor Systems
0.82
-1.02
-55.43%
AUID
Ipsidy
8.13
0.97
13.55%
ZENV
Zenvia
1.28
-0.94
-42.34%
Alarum Technologies Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -9.58% | Next Earnings Date: Jun 3, 2025
Earnings Call Sentiment Neutral
Alarum Technologies demonstrated strong financial growth and strategic execution by focusing on data collection, resulting in record revenues and a solid financial position. However, challenges such as increased operating costs, a decline in gross margin, and anticipated slower revenue growth in the near term present potential hurdles. The company's engagement in AI projects shows promising opportunities, yet the market's evolving nature poses both opportunities and uncertainties.Highlights
Record Annual Revenue and Growth
2024 annual revenue reached a record high of $31.8 million, a 20% increase from 2023. The data collection portion reached $30.9 million, up 45.2% from $21.3 million in 2023, representing 97% of total revenues.
Shift to Data Collection
Alarum fully executed its strategic vision to focus solely on data collection, with 97% of annual revenue attributed to this segment.
Strong Financial Position
Adjusted EBITDA reached $9.4 million in 2024, up from $5.2 million in 2023. Shareholders' equity doubled to $26.4 million from $13.2 million in 2023, and the cash position increased to $25 million from $10.9 million in 2023.
Initial AI Model Training Projects
In Q4 2024 and Q1 2025, Alarum started initial AI model training projects with new customers, including one of the world's largest corporations.
Lowlights
Decline in Non-IFRS Gross Margin
Non-IFRS gross margin for Q4 2024 was 74.3%, down from 77.2% in Q4 2023, due to strategic enhancements in the IT network.
Increase in Operating Expenses
Q4 2024 operating expenses increased to $5 million from $3.6 million in Q4 2023, primarily due to increased employee salary costs.
Lower Net Profit in Q4 2024
IFRS net profit for Q4 2024 was $400,000, down from $1.7 million in Q4 2023, mainly due to increased operating expenses.
Revenue Growth Challenges
The company anticipates slower revenue growth in Q1 2025, with expected revenues of $7.3 million, plus/minus 3%, due to market adjustments and evolving industry conditions.
Company Guidance
During the Alarum Technologies Fourth Quarter and Full Year 2024 Corporate Update Conference Call, CEO Shachar Daniel highlighted the company's strategic focus on data collection, which resulted in a record annual revenue of $31.8 million, with 97% derived from this segment. Adjusted EBITDA reached $9.4 million, reflecting significant growth and operational profitability. The company also reported a non-IFRS gross margin of 77% for the full year. Looking ahead, Alarum anticipates first-quarter 2025 revenue to be around $7.3 million, with adjusted EBITDA expected between $0.8 million and $1.2 million. Despite short-term volatility due to the evolving landscape between traditional web sources and AI-driven platforms, Alarum is optimistic about long-term growth, driven by increased demand from AI-driven companies for large-scale data extraction solutions. The company's robust cash position, with $25 million in cash and equivalents at the end of 2024, supports ongoing strategic investments.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.