Alarum Technologies Ltd. (www.alarum.io) (Nasdaq, TASE: ALAR)
(“Alarum” or the “Company”), a global provider of enterprise and
consumer internet access solutions, today issued the following
letter to shareholders by the Company's Chief Executive Officer,
Mr. Shachar Daniel.
Dear shareholders,
I am thrilled to conclude the successful and
transformational year of 2022 with a continuing strong performance
into January 2023. With this letter I would like to provide you
with an overview of some exciting growth catalysts we envisage for
the rest of 2023.
We recently completed the Company's rebranding
by changing our name to Alarum Technologies to reflect our
transition from a traditional enterprise cybersecurity-centered
company to an established leading provider of enterprise and
consumer internet access solutions.
Alarum is everything we aimed for in the last
few years, while realizing our key growth engines and crystallizing
our significant competitive advantages. For us, it was all about
focus, and understanding that the cybersecurity space is crowded,
requiring heavy investments into constant development, and
entailing relatively long sale-cycles. We therefore decided to
harness our knowledge and expertise in this arena to build a
cohesive and sustainable company. During the last two years, we
worked to integrate the business lines and technologies we have
acquired in 2019 and 2021, while focusing on the privacy market for
organizations and the privacy and security market for consumers. In
addition, we signed a cooperation agreement with a cyber-focused
entity that took on all the expenses associated with the Company’s
legacy cybersecurity activities. Our efforts resulted in two solid
business units that continue to grow and thrive. 2022 was an
outstanding year, adding four more quarters of revenue growth that
resulted in eight consecutive quarters of revenue growth, and
estimated annual revenues of more than $18.5 million. January 2023
kept this momentum with estimated revenues of $1.8 million and a
decreasing burn rate.
While maintaining our growth, we significantly
reduced our burn rate, a trend that we believe will continue into
2023. January 2023 kept this momentum with estimated revenues of
$1.8 million and a decreasing burn rate.
Alarum operates today in two main sectors, in
which we have distinctive competitive advantages. The assets we
have gained through our previous enterprise cybersecurity
activities put us in an advantageous position to stand out within
the Internet access arena with various solutions designed to
address data access and privacy requirement for enterprises and
consumers.
NetNut Ltd. (“NetNut”), our Enterprise Internet
Access arm, is a world leading brand in its field. It offers a
global web data collection cloud service, based on our proprietary
traffic optimization and routing technology and network. During
2022, we doubled our network's infrastructure, which is now able to
support and process billions in client requests. The scaleup in our
capabilities is a result of the onboarding of several strategic
customers, as well as the expansion of NetNut's network by
partnering with tens of Internet Service Providers.
NetNut continues to generate revenue growth
quarter after quarter and is cash flow positive.
Our Consumer Internet Access offers privacy and
cybersecurity solutions to end users. These solutions are designed
to allow users to take charge of their online privacy with a
powerful, secured and encrypted connection. These solutions are
installed on the consumers’ computers or mobile phones and are
available via various browser and mobile applications stores.
By investing in acquiring new users, the
Consumer Internet Access business model allows us to build
revenue-generating assets, which are expected to yield future
revenue streams. With this unique model we have successfully
secured funding from a strategic investor that chose to invest
directly in our customer acquisition program, as well as a credit
line for working capital from a leading Israeli commercial bank to
support this operation.
We remain agile and committed to growing
responsibly and to pave our way to profitability, which we expect
will maximize our long-term business potential. We are well aware
of the competitive landscape in which we are operating today and
are taking the steps necessary to further develop and strengthen
the Company’s competitive edge. We believe that under current
market's climate - the reduction in our burn rate, together with
becoming cash flow positive and maintaining a strong cash position
- are key in our path to provide value for our shareholders.
I would like to use this opportunity to thank
our employees for their commitment. It is their hard work,
alignment behind our strategy and dedication that enables us to
deliver on our promises, and I invite you to meet part of our
excellent team here.
We also want to thank you, our shareholders, for
your continuing support, your confidence and trust. While we
continue to take care of the short term, we are also building and
investing for the long term, in the capabilities we need, the
required knowhow and the talent to continue to create value for
you, our shareholders.
Sincerely,
Shachar Daniel
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About Alarum
Technologies Ltd.
Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) is
a global provider of internet access solutions. The Company
operates in two distinct segments: solutions for enterprises and
solutions for consumers.
The solutions by NetNut, our Enterprise Internet
Access arm, are based on our world’s fastest and most advanced and
secured hybrid proxy network, enabling our customers to collect
data anonymously at any scale from any public sources over the web.
Our network comprises both exit points based on our proprietary
reflection technology and hundreds of servers located at our ISP
partners around the world. The infrastructure is optimally designed
to guarantee the privacy, quality, stability, and the speed of the
service.
Our Consumer Internet Access arm offers privacy
and cybersecurity solutions to end users. These solutions are
designed to allow users to take charge of their online privacy with
a powerful, secured and encrypted connection. The solutions are
designed for basic and advanced use cases, ensuring complete
protection of personal and digital information.
The Company's previously developed cybersecurity
solutions for enterprises are offered by an information security
provider, as a solution or cloud service.
For more information about Alarum and its
privacy and cybersecurity solutions for enterprises and consumers,
please visit www.alarum.io.
Forward-Looking Statements
This letter to shareholders contains
forward-looking statements within the meaning of the “safe harbor”
provisions of the Private Securities Litigation Reform Act of 1995
and other Federal securities laws and the Israeli securities law.
Words such as “expects,” “anticipates,” “intends,” “plans,”
“believes,” “seeks,” “estimates” and similar expressions or
variations of such words are intended to identify forward-looking
statements. For example, Alarum is using forward-looking statements
in this press release when it discusses its vision for 2023, its
belief that the Company will continue to significantly reduce its
burn rate in 2023, NetNut’s continuous growth quarter after
quarter, advantages and benefits of its Consumer Internet Access
solutions, that revenue-generating assets are expected to yield
future revenue streams, its expectation that its path to
profitability will maximize its long-term business potential, that
the current market is key in the Company’s path to provide value
for its shareholders, that the Company is building and investing
for the long term, in the capabilities it need, the required
knowhow and the talent to continue to create value for its
shareholders. Because such statements deal with future events and
are based on Alarum’s current expectations, they are subject to
various risks and uncertainties and actual results, performance or
achievements of Alarum could differ materially from those described
in or implied by the statements in this press release. The
forward-looking statements contained or implied in this press
release are subject to other risks and uncertainties, including
those discussed under the heading “Risk Factors” in Alarum’s annual
report on Form 20-F filed with the Securities and Exchange
Commission (“SEC”) on March 29, 2022, and in any subsequent filings
with the SEC. Except as otherwise required by law, Alarum
undertakes no obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated
events.
INVESTOR RELATIONS
CONTACTS:Michal Efraty
+972-(0)52-3044404 investors@alarum.io
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