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Alarum Technologies (ALAR)
NASDAQ:ALAR
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Alarum Technologies
(NASDAQ:ALAR)
73Outperform
Positive Factors
Product Development
The firm started generating initial revenue for its recently launched Website-Unblocker, added some of the world's largest and most recognized brands, and made progress on adding API and analytical capabilities to its data products.
Revenue Growth
NetNut revenue growth remains impressive, growing 73% year over year and now at 98% of total revenue.
Negative Factors
Financial Outlook
Shares traded off intraday by approximately 31% on a weaker-than-anticipated outlook with a forecasted sequential decline in Q3 revenue.
Alarum Technologies (ALAR) vs. S&P 500 (SPY)
Market Cap
$46.29M
Dividend YieldN/A
Average Volume (3M)120.71K
Price to Earnings (P/E)6.3
Beta (1Y)2.24
Revenue Growth28.39%
EPS GrowthN/A
CountryUS
Employees52
SectorTechnology
Sector Strength45
IndustrySoftware
Share Statistics
EPS (TTM)1.07
Shares Outstanding6,934,099
10 Day Avg. Volume125,612
30 Day Avg. Volume120,707
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)6.41
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
$24.00Price Target Upside255.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Alarum Technologies Business Overview & Revenue Model
Company DescriptionAlarum Technologies (ALAR) is a cybersecurity firm specializing in providing advanced security solutions for businesses and individuals. The company operates within the cybersecurity sector, offering a range of products and services designed to protect digital assets from various threats. Alarum Technologies focuses on developing cutting-edge technologies that safeguard data and ensure privacy, catering to a diverse clientele including enterprises and consumers.
How the Company Makes MoneyAlarum Technologies generates revenue primarily through the sale of its cybersecurity products and services. The company's key revenue streams include subscription fees for its software solutions, which provide ongoing protection and updates for clients. Additionally, Alarum Technologies may engage in strategic partnerships with other technology firms to enhance its service offerings and expand its market reach. These collaborations can lead to joint ventures or co-developed products that contribute to the company's earnings. The company also benefits from enterprise contracts, where it provides customized security solutions tailored to the specific needs of larger organizations, further bolstering its revenue growth.
Alarum Technologies Financial Statement Overview
Summary
Overall, Alarum Technologies exhibits strong revenue growth and improving cash flow metrics, which bodes well for future prospects. However, challenges remain in achieving profitability, as seen in the negative profit margins and return on equity. The company maintains a healthy balance sheet with low leverage, which provides a solid foundation for future growth opportunities.Income Statement
Alarum Technologies has shown a strong revenue growth trajectory, with a notable increase of 41.2% from 2022 to 2023. The gross profit margin is robust at 70.9%, indicating efficient cost management. However, the company is still facing challenges with profitability, as evidenced by a negative net profit margin of -20.8% and a negative EBIT margin of -20.7%, suggesting ongoing operational inefficiencies.72
Positive
Balance Sheet
The balance sheet indicates a stable equity position with an equity ratio of 65.7% as of 2023, which is favorable for financial stability. The debt-to-equity ratio is low at 0.15, reflecting conservative leverage usage. However, the return on equity is negative at -41.9%, highlighting the need for improvement in generating returns for shareholders despite a solid equity base.65
Positive
Cash Flow
Alarum Technologies has significantly improved its cash flow position, with a positive operating cash flow to net income ratio of -0.86, indicating better cash flow management relative to net losses. Free cash flow has also transitioned to positive, with a growth of over 100% from 2022 to 2023, demonstrating effective capital expenditure management and an enhanced ability to fund operations.78
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 31.12M | 26.52M | 18.78M | 10.28M | 4.89M | 3.28M | Gross Profit |
| 23.94M | 18.81M | 10.13M | 5.14M | 2.39M | 1.40M | EBIT |
| 8.51M | -5.50M | -13.42M | -15.01M | -11.33M | -9.79M | EBITDA |
| 8.52M | -1.64M | -10.53M | -9.70M | -6.42M | -11.24M | Net Income Common Stockholders |
| 3.95M | -5.53M | -13.15M | -13.13M | -7.84M | -13.00M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 10.87M | 10.87M | 3.29M | 9.71M | 11.02M | 4.34M | Total Assets |
| 20.07M | 20.07M | 22.37M | 30.65M | 22.97M | 17.84M | Total Debt |
| 1.99M | 1.99M | 3.05M | 562.00K | 663.00K | 7.66M | Net Debt |
| -8.89M | -8.89M | -244.00K | -3.27M | -10.35M | 3.32M | Total Liabilities |
| 6.88M | 6.88M | 9.06M | 6.47M | 6.76M | 15.06M | Stockholders Equity |
| 13.18M | 13.18M | 13.31M | 24.19M | 16.22M | 2.78M |
| Cash Flow | Free Cash Flow | ||||
| 800.00K | 4.67M | -8.11M | -9.49M | -6.75M | -6.78M | Operating Cash Flow |
| 800.00K | 4.73M | -8.05M | -9.21M | -6.61M | -6.73M | Investing Cash Flow |
| 0.00 | 32.00K | 5.04M | -9.80M | -1.19M | -5.60M | Financing Cash Flow |
| 0.00 | 2.21M | 2.60M | 11.74M | 14.71M | 13.11M |
Alarum Technologies Technical Analysis
Negative
6.75
Price Trends
9.32
Negative
11.49
Negative
17.67
Negative
Market Momentum
-0.81
Negative
34.94
Neutral
58.29
Neutral
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 6.75 is below the 20-day moving average (MA) of 7.69, below the 50-day MA of 9.32, and below the 200-day MA of 17.67, indicating a bearish trend. The MACD of -0.81 indicates Negative momentum. The RSI at 34.94 is Neutral, neither overbought nor oversold. The STOCH value of 58.29 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $46.29M | 6.30 | 39.03% | ― | 28.39% | ― | |
73 Outperform | $30.59B | ― | -1.21% | ― | 27.77% | 89.39% | |
71 Outperform | $115.09B | 98.20 | 23.38% | ― | 13.86% | -46.44% | |
71 Outperform | $77.11B | 721.64 | -0.69% | ― | 29.39% | -119.62% | |
69 Neutral | $18.58B | 1,825.94 | 0.46% | ― | 15.33% | ― | |
67 Neutral | $40.24B | ― | -8.71% | ― | 28.76% | 58.13% | |
58 Neutral | $21.35B | 9.98 | -18.95% | 2.37% | 5.03% | -22.66% |
* Technology Sector Average
Performance Comparison
ALAR
Alarum Technologies
7.08
-11.27
-61.42%
PANW
Palo Alto Networks
179.48
34.42
23.73%
OKTA
Okta
108.78
-0.88
-0.80%
ZS
Zscaler
197.79
-3.64
-1.81%
CRWD
CrowdStrike Holdings
346.76
14.59
4.39%
NET
Cloudflare
119.40
23.50
24.50%
Alarum Technologies Earnings Call Summary
Earnings Call Date: Nov 25, 2024 | % Change Since: -55.59% | Next Earnings Date: Mar 20, 2025
Earnings Call Sentiment Positive
The earnings call was largely positive, with strong revenue growth, an increase in cash reserves, and expansion within a Fortune 200 customer. Despite a decline in gross margin and increased operating expenses, the company's strategic investments are positioning it well for future growth.Highlights
Revenue Growth
Total Q3 2024 revenues were $7.2 million, up 6.6% from $6.8 million in Q3 2023. NetNut's portion of the revenue increased by 13.7% from $6.1 million in Q3 2023 to $7 million in Q3 2024.
Strong Cash Position
Alarum's cash and cash equivalents increased to $24 million by the end of Q3 2024, up from $10.9 million as of December 31, 2023.
Adjusted EBITDA Exceeds Guidance
Adjusted EBITDA for Q3 2024 was $1.4 million, exceeding the guidance provided.
Fortune 200 Customer Expansion
A Fortune 200 company expanded its subscription to include the Website Unblocker product, indicating strong market acceptance and potential for future growth.
Strong Shareholders' Equity
Shareholders' equity rose to $25 million at the end of Q3 2024, up from $13.2 million on December 31, 2023.
Positive Net Profit Trend
IFRS net profit increased to $4.2 million for Q3 2024, up from $1.1 million in Q3 2023.
Lowlights
Decline in Gross Margin
Non-IFRS gross margin for Q3 2024 was 73.6%, compared to 79.4% in Q3 2023, due to strategic investments in the IP network.
Increased Operating Expenses
Operating expenses rose to $4.1 million in Q3 2024, compared to $3.7 million in the same period in 2023.
Impact of Customer Churn
The company mentioned that specific customers have not returned to increase their usage, impacting revenue growth.
Company Guidance
During the Alarum Technologies Third Quarter 2024 Corporate Update Conference Call, the company provided a comprehensive financial and strategic overview. Alarum reported Q3 2024 revenues of $7.2 million, with nearly $7 million attributed to its NetNut business unit. The company exceeded its adjusted EBITDA guidance, achieving $1.4 million, and increased its cash and cash equivalents to $24 million. The guidance for Q4 2024 anticipates revenue growth to $7.5 million, plus or minus 3%, with adjusted EBITDA expected between $1.3 million and $1.7 million. Alarum highlighted its strategic focus on expanding its IP proxy network and penetrating the data collection and labeling market. The company underscored a significant customer win with a Fortune 200 company, which adopted their Website Unblocker product, enhancing Alarum's position in the market. Additionally, the company's non-IFRS key business metrics include EBITDA, adjusted EBITDA, non-IFRS gross margin, and non-IFRS net profit or loss.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.